Energy Transfer misses estimates in Q3 but crude, NGL volumes hit record (updated)

Crestwood Equity Partners LP

01/11/2023 21:59

(New throughout, adds details from earnings conference call)
    By Stephanie Kelly
       NEW YORK, Nov 1 (Reuters) - Energy Transfer  ET.N 
reported third quarter 2023 earnings that slightly missed Wall
Street expectations, even as natural gas liquids (NGL) and crude
transportation volumes hit a company record.
    Energy Transfer's third quarter 2023 adjusted earnings of
$0.33 per share were just under the $0.34 per share expected by
analysts, according to LSEG data.
    Energy Transfer's adjusted earnings before interest, taxes,
depreciation and amortization in the quarter were $3.54 billion,
compared with $3.09 billion last year.
    The company expects its full-year 2023 adjusted EBITDA to
range between $13.5 billion and $13.6 billion, and its 2023
growth capital expenditures to be slightly below its previously
announced guidance of $2.0 billion, it said.
    NGL transportation volumes were up 14%, a record for the
company, while crude transportation volumes gained 23%, also a
record, the company said. 
    The company's NGL exports were up more than 20%, another
record.
    September and October were the company's "best months ever"
across its NGL export terminals because of increased U.S. and
international demand, said Chief Executive Thomas Long during a
conference call to announce the earnings. 
        An expansion to the company's Nederland export terminal
is expected to add up to 250,000 barrels per day (bpd) of export
capacity and be in service in mid-2025, Long added. Construction
for the expansion is underway.
  
        The company had previously said it would file an
application for new export authorization for its Lake Charles
LNG facility project. The U.S. Department of Energy denied a
request from the company to extend a deadline to complete
construction on the project.
  
        Energy Transfer hopes to hear a decision from the DOE by
mid-first quarter 2024, executives said during the call.
  
    During the third quarter 2023, Energy Transfer placed into
service its eighth fractionator at its Mont Belvieu, Texas,
facility, bringing the company's total fractionation capacity at
Mont Belvieu to over 1.15 million barrels per day (bpd).
    Also during the quarter, Energy Transfer announced it would
acquire Crestwood Equity Partners  CEQP.N , which owns gathering
and processing assets located in the Williston, Delaware, and
Powder River basins. The transaction is expected to close on
Nov. 3, the earnings release said.

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Energy Transfer to buy Crestwood in $7.1 billion pipeline deal  
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 (Reporting by Stephanie Kelly; Editing by Lisa Shumaker)
 ((Stephanie.Kelly@thomsonreuters.com; 646-737-4649; Reuters
Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))