NEW YORK, Aug 3 (Reuters) – Energy Transfer LP on Tuesday reported an increase in quarterly net income, driven by gains in its intrastate natural gas pipeline and storage business as well as natural gas liquids unit.
Energy Transfer was among the biggest winners after Winter Storm Uri knocked out power and halted distribution of natural gas in Texas in February. The company had said it expected to gain roughly $2.4 billion due to the storm.
In the second quarter, adjusted earnings in the intrastate transportation segment climbed 20% as the company gained $52 million in transportation fees due to revenues of $39 million related to Winter Storm Uri.
NGL and refined products transportation and services adjusted earnings rose 9.2%.
Energy Transfer said it began service on its Cushing to Nederland expansion project in June, which utilizes a crude oil pipeline previously servicing the Permian basin of Texas and New Mexico, the biggest U.S. shale producing region.
The new service provides connectivity to transport crude from the Denver-Julesburg Basin and Cushing, Oklahoma to ET’s Nederland, Texas terminal.
“We are now capable of transporting approximately 65,000 barrels per day (bpd) of oil from the DJ Basin and Cushing area to Nederland, and we are seeing a steady growth in volumes,” co-CEO Thomas Long said during the earnings call.
The company is moving forward with a Phase 2 which will increase capacity to 120,000 bpd, expected to be in service in the first quarter of 2022.
In May, a U.S. federal court judge denied a request from Native American tribes to shut the Dakota Access oil pipeline (DAPL). On Tuesday, Energy Transfer said the planned expansion has been placed into service and the system now has capacity of about 750,000 bpd.
For August, nominations on the pipeline system have increased significantly, co-CEO Marshall McCrea said.
Overall net income attributable to partners for the three months ended June 30, 2021 was $626 million, up $273 million from a year earlier. (Reporting by Devika Krishna Kumar in New York)
Read More: Energy Transfer earnings climb as natgas pipeline revenues jump