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Energy Transfer Reports First Quarter 2020 Results and Reduces Capital Expenditures


DALLAS–()–Energy Transfer LP (NYSE:ET) (“ET” or the “Partnership”) today reported financial results for the quarter ended March 31, 2020.

ET reported an earnings net loss attributable to partners for the three months ended March 31, 2020 of $855 million, which included non-cash goodwill impairments of $1.3 billion recorded during the period as a result of decreases in commodity prices and market demand.

Adjusted EBITDA for the three months ended March 31, 2020 was $2.64 billion, a decrease of $100 million compared to the three months ended March 31, 2019, primarily due to crude oil, NGL and refined products inventory valuation adjustments totaling $213 million in the first quarter of 2020. Without the inventory adjustments, Adjusted EBITDA would have been $2.85 billion for the first quarter of 2020.

Distributable Cash Flow attributable to partners, as adjusted, for the three months ended March 31, 2020 was $1.42 billion, a decrease of $177 million compared to the three months ended March 31, 2019, primarily due to the decrease in Adjusted EBITDA. Distribution coverage ratio for the three months ended March 31, 2020 was 1.72x, yielding excess coverage of $594 million of Distributable Cash Flow attributable to partners in excess of distributions.

ET has a fully-integrated midstream franchise which includes natural gas, crude oil, and NGL infrastructure assets serving customers in all of the major producing basins and markets across the U.S. During the first quarter of 2020, the Partnership’s operations performed well, with intrastate natural gas, crude oil and NGL transportation volumes higher compared to the same period in 2019.

Based on the outlook for the current market, ET is reducing its 2020 growth capital outlook by at least $400 million, to $3.6 billion, with another $300 million to $400 million of capital under evaluation for potential further reductions during the year. In the first quarter, ET spent approximately $1.0 billion on growth capital projects. ET expects that approximately 70 percent of the growth capital in 2020 will be spent on projects that are already 60 percent or more complete and will be in-service in 2020 or early 2021. ET also continues to review the broader market with lower commodity prices and producer activity and is updating its 2020 outlook for Adjusted EBITDA to range from $10.6 billion to $10.8 billion. ET maintains strong liquidity of approximately $4 billion as of March 31, 2020 and has significant asset strength and financial flexibility to manage through the current market cycle.

Key accomplishments and current developments:

Operational

  • In the first quarter of 2020, the COVID-19 pandemic prompted several states and municipalities in which we operate to take various actions to contain and combat the outbreak and spread of the virus. To date, our field operations have continued largely uninterrupted, and remote work and other COVID-19 related conditions…



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2020-05-11 07:00:00

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