Energy Transfer LP (NYSE:ET) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET

Company Participants

Tom Long - Co Chief Executive Officer
Mackie McCrea - Co Chief Executive Officer

Conference Call Participants

Jeremy Tonet - JPMorgan
Spiro Dounis - Citi
Keith Stanley - Wolf Research
Manav Gupta - UBS
Michael Blum - Wells Fargo
Theresa Chen - Barclays
John Mackay - Goldman Sachs
Elvira Scotto - RBC Capital Markets
Zach Evren - Tudor, Pickering, Holt & Co.

Operator

Good day, and welcome to the Energy Transfer LP First Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Tom Long, CEO of Energy Transfer. Please go ahead.

Tom Long

Thank you, operator, and good afternoon, everyone. And welcome to the Energy Transfer's first quarter 2024 earnings call. I'm also joined today by Mackie McCrea and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this afternoon as well as the slides posted to our website.

As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our Form 10-Q for the full quarter ended March 31, 2024, which we expect to file tomorrow May 9. I'll also refer to adjusted EBITDA and distributable cash flow or DCF, both of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP financial measures on our website.

I'll start today by going over our financial results, for the first quarter of 2024, we generated adjusted EBITDA of $3.9 billion compared to $3.4 billion for the first quarter of 2023. We had record volumes through our crude pipelines and also saw strong performances across the rest of our operations. DCF, equivalent to the partners of Energy Transfer as adjusted, was $2.4 billion compared to $2 billion for the first quarter of last year. This resulted in excess cash flow after distributions of approximately $1.3 billion. On April 24, we announced a quarterly cash distribution of $0.3175 per common unit or $1.27 on an annualized basis. This distribution represents an increase of 3.3% from the $0.3075 paid in the first quarter of 2023. In February, Fitch upgraded Energy Transfer's Senior Unsecured Credit Rating to BBB with a stable outlook, which followed an upgrade by S&P to BBB in 2023. At the end of the first quarter, we had no outstanding borrowings under our revolving credit facility.