Energy Transfer LP (NYSE:ET)
Q1 2020 Earnings Call
May 11, 2020, 5:00 p.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Greetings, and welcome to the Energy Transfer First Quarter Earnings Call. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions].
I would now like to turn the conference over to your host, Mr. Tom Long, Chief Financial Officer. Please go ahead, sir.
Thomas E. Long — Chief Financial Officer.
Thank you operator. And good afternoon, everyone, and welcome to the Energy Transfer first quarter 2020 earnings call. And we really want to thank all of you for joining us today. I’m also joined today by Kelcy Warren, Mackie McCrea, and other members of the senior management team, who are here to help answer your questions after our prepared remarks.
Hopefully, all of you have seen our 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 Security 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 Quarterly Report on Form 10-Q for the first quarter of 2020.
I’ll also refer to adjusted EBITDA, distributable cash flow, or DCF, and distribution coverage ratio, all of which are non-GAAP financial measures. You’ll find a reconciliation of our non-GAAP measures on our website. And we expect our 10-Q to be filed later today.
The current COVID-19 pandemic has impacted our nation in more ways than one. As we navigate through this uncertainty, we want to start today by thanking our team of more than 12,000 men and women across the country for their remarkable contributions and incredible commitment during this challenging time. We understand and appreciate the tremendous amount of hard work and coordination it requires to keep our assets running safely and efficiently, while keeping energy products moving both for the benefit of our partnership and our country.
Now before addressing the current market conditions brought on by COVID-19 and the OPEC oversupply, I’m going to start with a few of our first quarter 2020 highlights. For the first quarter, we generated adjusted EBITDA of $2.64 billion and DCF attributable to the partners of ET as adjusted of $1.42 billion, and our coverage ratio for the quarter was 1.72 times, which resulted in excess cash flow after distributions of $594 million.
Adjusted EBITDA was adversely affected by inventory valuation adjustments of $213 million in the first quarter of 2020, which I will discuss further in the segment reviews….
Read More: Energy Transfer LP (ET) Q1 2020 Earnings Call Transcript