DALLAS--(BUSINESS WIRE)--Feb. 22, 2017--
Energy Transfer Partners, L.P. (NYSE: ETP) today reported its
financial results for the quarter ended December 31, 2016. For the three
months ended December 31, 2016 Energy Transfer Partners, L.P. (“ETP” or
the “Partnership”) reported a net loss of $362 million, a decrease of
$383 million compared to net income of $21 million for the same period
last year, primarily due to non-cash impairments of $813 million
recorded in the current period. Adjusted EBITDA for the three months
ended December 31, 2016 totaled $1.43 billion, an increase of
$73 million over the same period last year. Distributable Cash Flow
attributable to the partners of ETP, as adjusted, for the three months
ended December 31, 2016 totaled $796 million, a decrease of $83 million
compared to the same period last year, primarily due to a current tax
benefit that was recorded in the prior year. Excluding the impact of the
change in current tax benefit between periods, Distributable Cash Flow
attributable to the partners of ETP, as adjusted, increased
approximately $100 million compared to the fourth quarter of 2015.
In January 2017, ETP announced a quarterly distribution of $1.055 per
unit ($4.22 annualized) on ETP Common Units for the quarter ended
December 31, 2016.
ETP’s other recent key accomplishments include the following:
-
In November 2016, ETP and Sunoco Logistics Partners L.P. (“Sunoco
Logistics”) entered into a merger agreement providing for the
acquisition of ETP by Sunoco Logistics in a unit-for-unit transaction.
Under the terms of the transaction, ETP unitholders will receive 1.5
common units of Sunoco Logistics for each common unit of ETP they own.
-
On November 1, 2016, ETP acquired certain interests in PennTex
Midstream Partners, LP (“PennTex”) from various parties for total
consideration of approximately $640 million in ETP units and cash.
-
In February 2017, ETP announced that the Federal Energy Regulatory
Commission (“FERC”) approved Rover Pipeline LLC’s (“Rover”)
application to construct and operate the Rover Pipeline project,
allowing Rover to move forward with its targeted in-service goals of
July 2017 for Phase I and November 2017 for Phase II.
-
On February 8, 2017, ETP announced that Dakota Access, LLC had
received an easement from the U.S. Army Corps of Engineers (“Army
Corps”) to construct a pipeline across land owned by the Army Corps on
both sides of Lake Oahe in North Dakota. With the receipt of the
easement, ETP expects to commence commercial operations on the Dakota
Access Pipeline and the adjoining Energy Transfer Crude Oil Pipeline
(collectively, the “Bakken Pipeline”) in the second quarter of 2017.
In addition, the previously announced project financing for the Bakken
Pipeline and the sale of a 36.75% interest in the Bakken Pipeline were
completed in February 2017.
-
In January 2017, the previously announced Comanche Trail Pipeline,
which transports natural gas from the Permian Basin to Mexico, was
placed into service.
-
In the fourth quarter of 2016, ETP issued 6.5 million common units
through its at-the-market equity program, generating net proceeds of
$236 million. In addition, in January 2017, ETP raised $568 million
through a private placement of its common units and $1.48 billion
through a senior notes offering.
-
As of December 31, 2016, ETP’s $3.75 billion revolving credit facility
had $2.78 billion of outstanding borrowings, and its leverage ratio,
as defined by the credit agreement, was 4.32x.
An analysis of ETP’s segment results and other supplementary data is
provided after the financial tables shown below. ETP has scheduled a
conference call for 8:00 a.m. Central Time, Thursday, February 23, 2017
to discuss the fourth quarter 2016 results. The conference call will be
broadcast live via an internet webcast, which can be accessed through www.energytransfer.com
and will also be available for replay on ETP’s website for a limited
time.
Energy Transfer Partners, L.P. (NYSE: ETP) is a
master limited partnership that owns and operates one of the largest and
most diversified portfolios of energy assets in the United States. ETP’s
subsidiaries include Panhandle Eastern Pipe Line Company, LP (the
successor of Southern Union Company) and Lone Star NGL LLC, which owns
and operates natural gas liquids storage, fractionation and
transportation assets. In total, ETP currently owns and operates more
than 62,500 miles of natural gas and natural gas liquids pipelines. ETP
also owns the general partner, 100% of the incentive distribution
rights, and approximately 67.1 million common units of Sunoco Logistics
Partners L.P. (NYSE: SXL), which operates a geographically diverse
portfolio of pipelines, terminalling and acquisition and marketing
assets. ETP recently acquired the general partner, 100% of the incentive
distribution rights, and an approximate 65% limited partnership interest
in PennTex Midstream Partners, LP (NASDAQ: PTXP), which is a
growth-oriented master limited partnership that provides natural gas
gathering and processing and residue gas and natural gas liquids
transportation services to producers in northern Louisiana. ETP’s
general partner is owned by Energy Transfer Equity, L.P. For more
information, visit the Energy Transfer Partners, L.P. website at www.energytransfer.com.
Energy Transfer Equity, L.P. (NYSE:ETE) is a master limited
partnership that owns the general partner and 100% of the incentive
distribution rights of Energy Transfer Partners, L.P. and Sunoco LP. ETE
also owns approximately 18.4 million ETP Common Units and approximately
81.0 million ETP Class H Units, which track 90% of the underlying
economics of the general partner interest and the IDRs of Sunoco
Logistics Partners L.P. (NYSE: SXL). On a consolidated basis, ETE’s
family of companies owns and operates approximately 71,000 miles of
natural gas, natural gas liquids, refined products, and crude oil
pipelines. For more information, visit the Energy Transfer Equity, L.P.
website at www.energytransfer.com.
Sunoco Logistics Partners L.P. (NYSE: SXL) is a master limited
partnership that owns and operates a logistics business consisting of a
geographically diverse portfolio of complementary pipeline, terminalling
and acquisition and marketing assets which are used to facilitate the
purchase and sale of crude oil, natural gas liquids, and refined
products. Sunoco Logistics’ general partner is a consolidated subsidiary
of Energy Transfer Partners, L.P. (NYSE: ETP). For more information,
visit the Sunoco Logistics Partners L.P. website at www.sunocologistics.com.
PennTex Midstream Partners, LP (NASDAQ: PTXP) is a
growth-oriented master limited partnership focused on owning, operating,
acquiring and developing midstream energy infrastructure assets in North
America. PTXP provides natural gas gathering and processing and residue
gas and natural gas liquids transportation services to producers in the
Terryville Complex in northern Louisiana. PennTex Midstream Partners,
LP’s general partner is a consolidated subsidiary of Energy Transfer
Partners, L.P. (NYSE: ETP). For more information, visit the PennTex
Midstream Partners, LP website at www.penntex.com.
Forward-Looking Statements
This news release may include certain statements concerning expectations
for the future that are forward-looking statements as defined by federal
law. Such forward-looking statements are subject to a variety of known
and unknown risks, uncertainties, and other factors that are difficult
to predict and many of which are beyond management’s control. An
extensive list of factors that can affect future results are discussed
in the Partnership’s Annual Report on Form 10-K and other documents
filed from time to time with the Securities and Exchange Commission. The
Partnership undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.
The information contained in this press release is available on our
website at www.energytransfer.com.
|
|
|
|
|
|
|
|
ENERGY TRANSFER PARTNERS, L.P. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In
millions) (unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
$
|
5,729
|
|
|
$
|
4,698
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
50,917
|
|
|
|
45,087
|
|
|
|
|
|
|
|
Advances to and investments in unconsolidated affiliates
|
|
|
|
4,280
|
|
|
|
5,003
|
Other non-current assets, net
|
|
|
|
672
|
|
|
|
536
|
Intangible assets, net
|
|
|
|
4,696
|
|
|
|
4,421
|
Goodwill
|
|
|
|
3,897
|
|
|
|
5,428
|
Total assets
|
|
|
$
|
70,191
|
|
|
$
|
65,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
$
|
6,203
|
|
|
$
|
4,121
|
|
|
|
|
|
|
|
Long-term debt, less current maturities
|
|
|
|
31,741
|
|
|
|
28,553
|
Long-term notes payable – related party
|
|
|
|
250
|
|
|
|
233
|
Non-current derivative liabilities
|
|
|
|
76
|
|
|
|
137
|
Deferred income taxes
|
|
|
|
4,394
|
|
|
|
4,082
|
Other non-current liabilities
|
|
|
|
952
|
|
|
|
968
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Series A Preferred Units
|
|
|
|
33
|
|
|
|
33
|
Redeemable noncontrolling interests
|
|
|
|
15
|
|
|
|
15
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Total partners’ capital
|
|
|
|
18,642
|
|
|
|
20,836
|
Noncontrolling interest
|
|
|
|
7,885
|
|
|
|
6,195
|
Total equity
|
|
|
|
26,527
|
|
|
|
27,031
|
Total liabilities and equity
|
|
|
$
|
70,191
|
|
|
$
|
65,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENERGY TRANSFER PARTNERS, L.P. AND
SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In
millions, except per unit data) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
REVENUES
|
|
|
$
|
6,526
|
|
|
|
$
|
5,825
|
|
|
|
|
$
|
21,827
|
|
|
|
$
|
34,292
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
|
4,865
|
|
|
|
|
4,237
|
|
|
|
|
|
15,394
|
|
|
|
|
27,029
|
|
Operating expenses
|
|
|
|
374
|
|
|
|
|
498
|
|
|
|
|
|
1,484
|
|
|
|
|
2,261
|
|
Depreciation, depletion and amortization
|
|
|
|
517
|
|
|
|
|
478
|
|
|
|
|
|
1,986
|
|
|
|
|
1,929
|
|
Selling, general and administrative
|
|
|
|
122
|
|
|
|
|
86
|
|
|
|
|
|
348
|
|
|
|
|
475
|
|
Impairment losses
|
|
|
|
813
|
|
|
|
|
339
|
|
|
|
|
|
813
|
|
|
|
|
339
|
|
Total costs and expenses
|
|
|
|
6,691
|
|
|
|
|
5,638
|
|
|
|
|
|
20,025
|
|
|
|
|
32,033
|
|
OPERATING INCOME (LOSS)
|
|
|
|
(165
|
)
|
|
|
|
187
|
|
|
|
|
|
1,802
|
|
|
|
|
2,259
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(336
|
)
|
|
|
|
(312
|
)
|
|
|
|
|
(1,317
|
)
|
|
|
|
(1,291
|
)
|
Equity in earnings (losses) from unconsolidated affiliates
|
|
|
|
(201
|
)
|
|
|
|
81
|
|
|
|
|
|
59
|
|
|
|
|
469
|
|
Impairment of investment in an unconsolidated affiliate
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
(308
|
)
|
|
|
|
—
|
|
Gains on acquisitions
|
|
|
|
83
|
|
|
|
|
—
|
|
|
|
|
|
83
|
|
|
|
|
—
|
|
Losses on extinguishments of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(43
|
)
|
Gains (losses) on interest rate derivatives
|
|
|
|
167
|
|
|
|
|
(4
|
)
|
|
|
|
|
(12
|
)
|
|
|
|
(18
|
)
|
Other, net
|
|
|
|
35
|
|
|
|
|
(34
|
)
|
|
|
|
|
131
|
|
|
|
|
22
|
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
|
|
|
|
(417
|
)
|
|
|
|
(82
|
)
|
|
|
|
|
438
|
|
|
|
|
1,398
|
|
Income tax benefit
|
|
|
|
(55
|
)
|
|
|
|
(103
|
)
|
|
|
|
|
(186
|
)
|
|
|
|
(123
|
)
|
NET INCOME (LOSS)
|
|
|
|
(362
|
)
|
|
|
|
21
|
|
|
|
|
|
624
|
|
|
|
|
1,521
|
|
Less: Net income (loss) attributable to noncontrolling interest
|
|
|
|
96
|
|
|
|
|
(25
|
)
|
|
|
|
|
327
|
|
|
|
|
157
|
|
Less: Net loss attributable to predecessor
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(34
|
)
|
NET INCOME (LOSS) ATTRIBUTABLE TO PARTNERS
|
|
|
|
(458
|
)
|
|
|
|
46
|
|
|
|
|
|
297
|
|
|
|
|
1,398
|
|
General Partner’s interest in net income
|
|
|
|
208
|
|
|
|
|
285
|
|
|
|
|
|
948
|
|
|
|
|
1,064
|
|
Class H Unitholder’s interest in net income
|
|
|
|
94
|
|
|
|
|
74
|
|
|
|
|
|
351
|
|
|
|
|
258
|
|
Class I Unitholder’s interest in net income
|
|
|
|
2
|
|
|
|
|
14
|
|
|
|
|
|
8
|
|
|
|
|
94
|
|
Common Unitholders’ interest in net loss
|
|
|
$
|
(762
|
)
|
|
|
$
|
(327
|
)
|
|
|
|
$
|
(1,010
|
)
|
|
|
$
|
(18
|
)
|
NET LOSS PER COMMON UNIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(1.47
|
)
|
|
|
$
|
(0.68
|
)
|
|
|
|
$
|
(2.06
|
)
|
|
|
$
|
(0.09
|
)
|
Diluted
|
|
|
$
|
(1.47
|
)
|
|
|
$
|
(0.68
|
)
|
|
|
|
$
|
(2.06
|
)
|
|
|
$
|
(0.10
|
)
|
WEIGHTED AVERAGE NUMBER OF COMMON UNITS OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
522.5
|
|
|
|
|
485.1
|
|
|
|
|
|
505.5
|
|
|
|
|
432.8
|
|
Diluted
|
|
|
|
522.5
|
|
|
|
|
485.5
|
|
|
|
|
|
505.5
|
|
|
|
|
433.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION (Dollars
and units in millions, except per unit amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
Reconciliation of net income (loss) to Adjusted EBITDA and
Distributable Cash Flow (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(362
|
)
|
|
|
$
|
21
|
|
|
|
|
$
|
624
|
|
|
|
$
|
1,521
|
|
Interest expense, net
|
|
|
|
336
|
|
|
|
|
312
|
|
|
|
|
|
1,317
|
|
|
|
|
1,291
|
|
Gains on acquisitions
|
|
|
|
(83
|
)
|
|
|
|
—
|
|
|
|
|
|
(83
|
)
|
|
|
|
—
|
|
Impairment losses (b)
|
|
|
|
813
|
|
|
|
|
339
|
|
|
|
|
|
813
|
|
|
|
|
339
|
|
Income tax benefit
|
|
|
|
(55
|
)
|
|
|
|
(103
|
)
|
|
|
|
|
(186
|
)
|
|
|
|
(123
|
)
|
Depreciation, depletion and amortization
|
|
|
|
517
|
|
|
|
|
478
|
|
|
|
|
|
1,986
|
|
|
|
|
1,929
|
|
Non-cash compensation expense
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
|
80
|
|
|
|
|
79
|
|
(Gains) losses on interest rate derivatives
|
|
|
|
(167
|
)
|
|
|
|
4
|
|
|
|
|
|
12
|
|
|
|
|
18
|
|
Unrealized (gains) losses on commodity risk management activities
|
|
|
|
35
|
|
|
|
|
(7
|
)
|
|
|
|
|
131
|
|
|
|
|
65
|
|
Inventory valuation adjustments
|
|
|
|
(27
|
)
|
|
|
|
120
|
|
|
|
|
|
(170
|
)
|
|
|
|
104
|
|
Impairment of investment in an unconsolidated affiliate
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
308
|
|
|
|
|
—
|
|
Losses on extinguishments of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
43
|
|
Equity in (earnings) losses of unconsolidated affiliates
|
|
|
|
201
|
|
|
|
|
(81
|
)
|
|
|
|
|
(59
|
)
|
|
|
|
(469
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
235
|
|
|
|
|
226
|
|
|
|
|
|
946
|
|
|
|
|
937
|
|
Other, net
|
|
|
|
(30
|
)
|
|
|
|
31
|
|
|
|
|
|
(114
|
)
|
|
|
|
(20
|
)
|
Adjusted EBITDA (consolidated)
|
|
|
|
1,433
|
|
|
|
|
1,360
|
|
|
|
|
|
5,605
|
|
|
|
|
5,714
|
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
(235
|
)
|
|
|
|
(226
|
)
|
|
|
|
|
(946
|
)
|
|
|
|
(937
|
)
|
Distributable cash flow from unconsolidated affiliates
|
|
|
|
134
|
|
|
|
|
129
|
|
|
|
|
|
518
|
|
|
|
|
646
|
|
Interest expense, net of interest capitalized
|
|
|
|
(336
|
)
|
|
|
|
(312
|
)
|
|
|
|
|
(1,317
|
)
|
|
|
|
(1,291
|
)
|
Amortization included in interest expense
|
|
|
|
(4
|
)
|
|
|
|
(6
|
)
|
|
|
|
|
(20
|
)
|
|
|
|
(36
|
)
|
Current income tax benefit (c)
|
|
|
|
40
|
|
|
|
|
283
|
|
|
|
|
|
17
|
|
|
|
|
325
|
|
Transaction-related income taxes (c)
|
|
|
|
—
|
|
|
|
|
(51
|
)
|
|
|
|
|
—
|
|
|
|
|
(51
|
)
|
Maintenance capital expenditures
|
|
|
|
(134
|
)
|
|
|
|
(177
|
)
|
|
|
|
|
(368
|
)
|
|
|
|
(485
|
)
|
Other, net
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
|
21
|
|
|
|
|
12
|
|
Distributable Cash Flow (consolidated)
|
|
|
|
906
|
|
|
|
|
1,001
|
|
|
|
|
|
3,510
|
|
|
|
|
3,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Cash Flow attributable to Sunoco Logistics (100%)
|
|
|
|
(247
|
)
|
|
|
|
(240
|
)
|
|
|
|
|
(943
|
)
|
|
|
|
(874
|
)
|
Distributions from Sunoco Logistics to ETP
|
|
|
|
139
|
|
|
|
|
118
|
|
|
|
|
|
532
|
|
|
|
|
413
|
|
Distributable Cash Flow attributable to PennTex (100%)
|
|
|
|
(11
|
)
|
|
|
|
—
|
|
|
|
|
|
(11
|
)
|
|
|
|
—
|
|
Distributions from PennTex to ETP
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
|
16
|
|
|
|
|
—
|
|
Distributable Cash Flow attributable to Sunoco LP (100%) (d)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(68
|
)
|
Distributions from Sunoco LP to ETP (d)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
24
|
|
Distributable cash flow attributable to noncontrolling interest in
other consolidated subsidiaries
|
|
|
|
(11
|
)
|
|
|
|
(5
|
)
|
|
|
|
|
(37
|
)
|
|
|
|
(20
|
)
|
Distributable Cash Flow attributable to the partners of ETP
|
|
|
|
784
|
|
|
|
|
874
|
|
|
|
|
|
3,067
|
|
|
|
|
3,372
|
|
Transaction-related expenses
|
|
|
|
12
|
|
|
|
|
5
|
|
|
|
|
|
16
|
|
|
|
|
42
|
|
Distributable Cash Flow attributable to the partners of ETP, as
adjusted
|
|
|
$
|
796
|
|
|
|
$
|
879
|
|
|
|
|
$
|
3,083
|
|
|
|
$
|
3,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to the partners of ETP (e):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Partners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units held by public
|
|
|
$
|
561
|
|
|
|
$
|
512
|
|
|
|
|
$
|
2,168
|
|
|
|
$
|
1,970
|
|
Common units held by ETE
|
|
|
|
20
|
|
|
|
|
3
|
|
|
|
|
|
28
|
|
|
|
|
54
|
|
Class H Units held by ETE (f)
|
|
|
|
94
|
|
|
|
|
77
|
|
|
|
|
|
357
|
|
|
|
|
263
|
|
General Partner interests held by ETE
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
|
32
|
|
|
|
|
31
|
|
Incentive Distribution Rights (“IDRs”) held by ETE
|
|
|
|
351
|
|
|
|
|
324
|
|
|
|
|
|
1,363
|
|
|
|
|
1,261
|
|
IDR relinquishments net of Class I Unit distributions (g)
|
|
|
|
(138
|
)
|
|
|
|
(28
|
)
|
|
|
|
|
(409
|
)
|
|
|
|
(111
|
)
|
Total distributions to be paid to the partners of ETP
|
|
|
$
|
896
|
|
|
|
$
|
896
|
|
|
|
|
$
|
3,539
|
|
|
|
$
|
3,468
|
|
Common Units outstanding – end of period (e)
|
|
|
|
529.9
|
|
|
|
|
505.6
|
|
|
|
|
|
529.9
|
|
|
|
|
505.6
|
|
Distribution coverage ratio (h)
|
|
|
|
0.89
|
x
|
|
|
|
0.98
|
x
|
|
|
|
|
0.87
|
x
|
|
|
|
0.98
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial
measures used by industry analysts, investors, lenders, and rating
agencies to assess the financial performance and the operating results
of ETP’s fundamental business activities and should not be considered in
isolation or as a substitute for net income, income from operations,
cash flows from operating activities, or other GAAP measures.
There are material limitations to using measures such as Adjusted EBITDA
and Distributable Cash Flow, including the difficulty associated with
using either as the sole measure to compare the results of one company
to another, and the inability to analyze certain significant items that
directly affect a company’s net income or loss or cash flows. In
addition, our calculations of Adjusted EBITDA and Distributable Cash
Flow may not be consistent with similarly titled measures of other
companies and should be viewed in conjunction with measurements that are
computed in accordance with GAAP, such as gross margin, operating
income, net income, and cash flow from operating activities.
Definition of Adjusted EBITDA
ETP defines Adjusted EBITDA as total partnership earnings before
interest, taxes, depreciation, depletion, amortization and other
non-cash items, such as non-cash compensation expense, gains and losses
on disposals of assets, the allowance for equity funds used during
construction, unrealized gains and losses on commodity risk management
activities, non-cash impairment charges, losses on extinguishments of
debt and other non-operating income or expense items. Unrealized gains
and losses on commodity risk management activities include unrealized
gains and losses on commodity derivatives and inventory fair value
adjustments (excluding lower of cost or market adjustments). Adjusted
EBITDA reflects amounts for less than wholly-owned subsidiaries based on
100% of the subsidiaries’ results of operations and for unconsolidated
affiliates based on ETP’s proportionate ownership.
Adjusted EBITDA is used by management to determine our operating
performance and, along with other financial and volumetric data, as
internal measures for setting annual operating budgets, assessing
financial performance of our numerous business locations, as a measure
for evaluating targeted businesses for acquisition and as a measurement
component of incentive compensation.
Definition of Distributable Cash Flow
ETP defines Distributable Cash Flow as net income, adjusted for certain
non-cash items, less maintenance capital expenditures. Non-cash items
include depreciation, depletion and amortization, non-cash compensation
expense, gains and losses on disposals of assets, the allowance for
equity funds used during construction, unrealized gains and losses on
commodity risk management activities, non-cash impairment charges,
losses on extinguishments of debt and deferred income taxes. Unrealized
gains and losses on commodity risk management activities includes
unrealized gains and losses on commodity derivatives and inventory fair
value adjustments (excluding lower of cost or market adjustments). For
unconsolidated affiliates, Distributable Cash Flow reflects the
Partnership’s proportionate share of the investee’s distributable cash
flow.
Distributable Cash Flow is used by management to evaluate our overall
performance. Our partnership agreement requires us to distribute all
available cash, and Distributable Cash Flow is calculated to evaluate
our ability to fund distributions through cash generated by our
operations.
On a consolidated basis, Distributable Cash Flow includes 100% of the
Distributable Cash Flow of ETP’s consolidated subsidiaries. However, to
the extent that noncontrolling interests exist among ETP’s subsidiaries,
the Distributable Cash Flow generated by ETP’s subsidiaries may not be
available to be distributed to the partners of ETP. In order to reflect
the cash flows available for distributions to the partners of ETP, ETP
has reported Distributable Cash Flow attributable to the partners of
ETP, which is calculated by adjusting Distributable Cash Flow
(consolidated), as follows:
-
For subsidiaries with publicly traded equity interests, Distributable
Cash Flow (consolidated) includes 100% of Distributable Cash Flow
attributable to such subsidiary, and Distributable Cash Flow
attributable to the partners of ETP includes distributions to be
received by the parent company with respect to the periods presented.
-
For consolidated joint ventures or similar entities, where the
noncontrolling interest is not publicly traded, Distributable Cash
Flow (consolidated) includes 100% of Distributable Cash Flow
attributable to such subsidiary, but Distributable Cash Flow
attributable to the partners of ETP is net of distributions to be paid
by the subsidiary to the noncontrolling interests.
For Distributable Cash Flow attributable to the partners of ETP, as
adjusted, certain transaction-related and non-recurring expenses that
are included in net income are excluded.
(b) During the three months ended December 31, 2016, we recorded
goodwill impairments of $638 million in the interstate transportation
and storage segment and $32 million in the midstream segment. These
goodwill impairments were primarily due to decreases in projected future
revenues and cash flows driven by declines in commodity prices and
changes in the markets that these assets serve. In addition, impairment
losses for the three months ended December 31, 2016 also include a
$133 million impairment to property, plant and equipment in the
interstate transportation and storage segment due to a decrease in
projected future cash flows as well as a $10 million impairment to
property, plant and equipment in the midstream segment. During the three
months ended December 31, 2015, we recorded goodwill impairments of (i)
$99 million related to Transwestern due primarily to the market declines
in current and expected future commodity prices in the fourth quarter of
2015, (ii) $106 million related to Lone Star Refinery Services due
primarily to changes in assumptions related to potential future revenues
as well as the market declines in current and expected future commodity
prices, (iii) $110 million of fixed asset impairments related to Lone
Star NGL Refinery Services primarily due to the economic obsolescence
identified as a result of low utilization and expected decrease in
future cash flows, and (iv) $24 million of intangible asset impairments
related to Lone Star NGL Refinery Services primarily due to the economic
obsolescence identified as a result of expected decrease in future cash
flows.
(c) The three months ended December 31, 2015 reflect current income tax
benefits of $80 million due to lower earnings among the Partnership’s
consolidated corporate subsidiaries, $120 million due to the retroactive
re-enactment of bonus depreciation, and $24 million attributable to the
reversal of an income tax reserve for certain amended tax returns that
had been filed claiming previously disallowed Pennsylvania net operating
loss deductions. Additionally, the three months ended December 31, 2015
also reflect a $51 million current income tax benefit related to the
funding of Sunoco, Inc.’s pension plan obligations, which benefit has
been excluded from Distributable Cash Flow.
(d) Amounts related to Sunoco LP reflect the periods through June 30,
2015, subsequent to which Sunoco LP was deconsolidated and is now
reflected as an equity method investment.
(e) Distributions on ETP Common Units and the number of ETP Common Units
outstanding at the end of the period, both as reflected above, exclude
amounts related to ETP Common Units held by subsidiaries of ETP.
(f) Distributions on the Class H Units for the three months and years
ended December 31, 2016 and 2015 were calculated as follows:
|
|
|
Three Months Ended December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
General partner distributions and incentive distributions from
Sunoco Logistics
|
|
|
$
|
105
|
|
|
|
$
|
86
|
|
|
|
|
$
|
397
|
|
|
|
$
|
293
|
|
|
|
|
|
90.05
|
%
|
|
|
|
90.05
|
%
|
|
|
|
|
90.05
|
%
|
|
|
|
90.05
|
%
|
Total Class H Unit distributions
|
|
|
$
|
94
|
|
|
|
$
|
77
|
|
|
|
|
$
|
357
|
|
|
|
$
|
263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Incremental distributions previously paid to the Class H Unitholder
were eliminated in Amendment No. 9 to ETP’s Amended and Restated
Agreement of Limited Partnership effective in the first quarter of 2015.
(g) IDR relinquishments for the three and twelve months ended
December 31, 2016 include the impact of $95 million and $255 million,
respectively, of incentive distribution reductions beginning with
respect to the second quarter 2016 distributions, as agreed to between
ETE and ETP in July 2016. Additionally, the three and twelve months
ended December 31, 2016 include the impact of $8 million and $17
million, respectively, of incentive distribution reductions beginning
with respect to the third quarter of 2016 distributions, as agreed to
between ETE and ETP in November 2016 related to ETP’s acquisition of
PennTex.
(h) Distribution coverage ratio for a period is calculated as
Distributable Cash Flow attributable to the partners of ETP, as
adjusted, divided by net distributions expected to be paid to the
partners of ETP in respect of such period.
SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT (Tabular
dollar amounts in millions) (unaudited)
Our segment results are presented based on the measure of Segment
Adjusted EBITDA. The tables below identify the components of Segment
Adjusted EBITDA, which was calculated as follows:
-
Gross margin, operating expenses, and selling, general and
administrative expenses. These amounts represent the amounts
included in our consolidated financial statements that are
attributable to each segment.
-
Unrealized gains or losses on commodity risk management activities and
inventory valuation adjustments. These are the unrealized amounts
that are included in cost of products sold to calculate gross margin.
These amounts are not included in Segment Adjusted EBITDA; therefore,
the unrealized losses are added back and the unrealized gains are
subtracted to calculate the segment measure.
-
Non-cash compensation expense. These amounts represent the
total non-cash compensation recorded in operating expenses and
selling, general and administrative expenses. This expense is not
included in Segment Adjusted EBITDA and therefore is added back to
calculate the segment measure.
-
Adjusted EBITDA related to unconsolidated affiliates. These
amounts represent our proportionate share of the Adjusted EBITDA of
our unconsolidated affiliates. Amounts reflected are calculated
consistently with our definition of Adjusted EBITDA.
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Segment Adjusted EBITDA:
|
|
|
|
|
|
|
Midstream
|
|
|
$
|
258
|
|
|
$
|
260
|
Liquids transportation and services
|
|
|
|
281
|
|
|
|
226
|
Interstate transportation and storage
|
|
|
|
269
|
|
|
|
283
|
Intrastate transportation and storage
|
|
|
|
152
|
|
|
|
122
|
Investment in Sunoco Logistics
|
|
|
|
327
|
|
|
|
317
|
All other
|
|
|
|
146
|
|
|
|
152
|
|
|
|
$
|
1,433
|
|
|
$
|
1,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Gathered volumes (MMBtu/d):
|
|
|
|
9,693,728
|
|
|
|
|
10,051,593
|
|
NGLs produced (Bbls/d):
|
|
|
|
430,603
|
|
|
|
|
443,741
|
|
Equity NGLs produced (Bbls/d):
|
|
|
|
29,001
|
|
|
|
|
29,437
|
|
Revenues
|
|
|
$
|
1,414
|
|
|
|
$
|
1,286
|
|
Cost of products sold
|
|
|
|
966
|
|
|
|
|
841
|
|
Gross margin
|
|
|
|
448
|
|
|
|
|
445
|
|
Unrealized losses on commodity risk management activities
|
|
|
|
15
|
|
|
|
|
—
|
|
Operating expenses, excluding non-cash compensation expense
|
|
|
|
(168
|
)
|
|
|
|
(183
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation expense
|
|
|
|
(42
|
)
|
|
|
|
(8
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
5
|
|
|
|
|
6
|
|
Segment Adjusted EBITDA
|
|
|
$
|
258
|
|
|
|
$
|
260
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016 compared to the same period
last year, gathered volumes decreased during the three months ended
December 31, 2016 compared to the same period last year primarily due to
basin declines in the South Texas, North Texas, and
Mid-Continent/Panhandle regions, partially offset by gains in the
Permian, Northeast and the impact of recent acquisitions, including
PennTex. NGL production declined primarily due to basin declines in the
South Texas, North Texas, and Mid-Continent/Panhandle regions, partially
offset by increased gathering and processing capacities in the Permian
and Cotton Valley regions.
For the three months ended December 31, 2016 compared to the same period
last year, Segment Adjusted EBITDA related to our midstream segment
decreased due to the net impacts of the following:
-
a decrease of $2 million in non-fee based margin due to volume
declines in the South Texas, North Texas, and Mid-Continent/Panhandle
regions;
-
a decrease of $4 million in fee-based revenue due to declines in South
Texas, North Texas and the Mid-Continent/Panhandle regions offset by
growth in the Permian, Northeast and the impact of acquisitions,
including PennTex;
-
a decrease of $3 million (excluding unrealized losses of $13 million)
due to lower benefit from settled derivatives used to hedge commodity
margins; and
-
an increase in general and administrative expenses of $34 million
primarily due to year-end accruals and costs associated with the
acquisition of PennTex; partially offset by
-
an increase of $31 million in non-fee based margins due to higher
crude oil and NGL prices; and
-
a decrease in operating expenses of $15 million primarily due to lower
ad valorem taxes and lower employee costs.
Liquids Transportation and Services
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Liquids transportation volumes (Bbls/d)
|
|
|
|
669,694
|
|
|
|
|
523,285
|
|
NGL fractionation volumes (Bbls/d)
|
|
|
|
393,663
|
|
|
|
|
249,566
|
|
Revenues
|
|
|
$
|
1,561
|
|
|
|
$
|
975
|
|
Cost of products sold
|
|
|
|
1,235
|
|
|
|
|
715
|
|
Gross margin
|
|
|
|
326
|
|
|
|
|
260
|
|
Unrealized losses on commodity risk management activities
|
|
|
|
12
|
|
|
|
|
6
|
|
Operating expenses, excluding non-cash compensation expense
|
|
|
|
(51
|
)
|
|
|
|
(38
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation expense
|
|
|
|
(6
|
)
|
|
|
|
(4
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
Other
|
|
|
|
1
|
|
|
|
|
—
|
|
Segment Adjusted EBITDA
|
|
|
$
|
281
|
|
|
|
$
|
226
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016 compared to the same period
last year, NGL transportation volumes increased in several of the major
producing regions including the Permian, North Texas and Louisiana.
Crude transportation volumes increased as we placed Phase I of the Bayou
Bridge crude pipeline in service in the second quarter of 2016 and
transported approximately 72,000 Bbls/d during the three months ended
December 31, 2016. In addition, we placed certain West Texas crude
assets into service in 2016, which collectively resulted in an increase
of 23,000 Bbls/d during the three months ended December 31, 2016.
Average daily fractionated volumes increased approximately 144,000
Bbls/d for the three months ended December 31, 2016 compared to the same
period last year primarily due to the ramp-up of our third 100,000
Bbls/d fractionator at Mont Belvieu, Texas, which was commissioned in
late December 2015, as well as increased producer volumes as mentioned
above. In addition, we placed a fourth fractionator in-service in the
fourth quarter of 2016.
For the three months ended December 31, 2016 compared to the same period
last year, Segment Adjusted EBITDA related to our liquids transportation
and services segment increased due to the net impacts of the following:
-
an increase of $40 million in transportation margin due to higher NGL
and crude transportation volumes. NGL volumes were higher from several
major producing regions, with the increases from the Permian region
being the most significant. These increases in NGL transportation
volumes resulted in a $22 million increase in transportation fees. In
addition, crude transportation fees increased $8 million due to new
assets being placed in-service, including the first phase of the Bayou
Bridge pipeline in April 2016 and crude gathering assets in West Texas
during 2016;
-
an increase of $38 million in processing and fractionation margin
(excluding changes in unrealized losses of $9 million) primarily due
to increased producer volumes, primarily from the West Texas region
along with an increase in our fractionation capacity due to the
placing in service of our third fractionator in December 2015 and our
fourth fractionator in October 2016; and
-
an increase of $12 million in storage margin due to an increase in
volumes from our Mont Belvieu fractionators. Throughput volumes, on
which we earn a fee in our storage assets, increased 26%, which
resulted in an increase in margin of $6 million. We also realized an
increase of $2 million due to increased demand for our leased storage
capacity as a result of more favorable market conditions. In addition,
we realized increased terminal and pipeline fees revenue of $4 million
compared to the prior year; partially offset by
-
a decrease of $14 million in other margin (excluding changes in
unrealized losses of $3 million) primarily due to the timing of the
withdrawal and sale of NGL component inventory;
-
an increase of $13 million in operating expenses primarily due to
increased costs associated with our third fractionator at Mont
Belvieu; and
-
an increase of $2 million in selling, general and administrative
expenses due to lower capitalized overhead as a result of reduced
capital spending.
Interstate Transportation and Storage
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Natural gas transported (MMBtu/d)
|
|
|
|
5,322,091
|
|
|
|
|
5,739,157
|
|
Natural gas sold (MMBtu/d)
|
|
|
|
17,190
|
|
|
|
|
18,665
|
|
Revenues
|
|
|
$
|
240
|
|
|
|
$
|
258
|
|
Operating expenses, excluding non-cash compensation, amortization
and accretion expenses
|
|
|
|
(79
|
)
|
|
|
|
(83
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation, amortization and accretion expenses
|
|
|
|
(11
|
)
|
|
|
|
(9
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
118
|
|
|
|
|
117
|
|
Other
|
|
|
|
1
|
|
|
|
|
—
|
|
Segment Adjusted EBITDA
|
|
|
$
|
269
|
|
|
|
$
|
283
|
|
|
|
|
|
|
|
|
Distributions from unconsolidated affiliates
|
|
|
$
|
68
|
|
|
|
$
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016 compared to the same period
last year, transported volumes decreased 222,289 MMBtu/d on the
Trunkline pipeline and 171,369 MMBtu/d in the West and San Juan areas on
the Transwestern pipeline primarily due to lower utilization resulting
from lower customer demand with declines in volumes on the Transwestern
pipeline partially offset by opportunities in the Texas Intrastate
markets. Transported volumes on the Tiger pipeline increased 127,974
MMBtu/d due to increased demand in the upper Midwest due to gas prices
and weather.
For the three months ended December 31, 2016 compared to the same period
last year, Segment Adjusted EBITDA related to our interstate
transportation and storage segment decreased due to the net effect of
the following:
-
a decrease of $11 million in revenues due to lower contracted capacity
and rates on the Panhandle and Trunkline pipelines due to weak
transportation spreads and lower contracted capacity on the
Transwestern pipeline due to mild weather, a decrease of $9 million in
revenues due to contract restructuring on the Tiger pipeline, and a
decrease of $2 million on the Sea Robin pipeline due to declines in
production and third party maintenance. These decreases were partially
offset by higher reservation revenues on the Transwestern pipeline of
$4 million from a growth project; partially offset by
-
a decrease of $4 million in operating expenses primarily due to lower
maintenance projects.
The decrease in cash distributions from unconsolidated affiliates is due
to higher Citrus cash taxes.
Intrastate Transportation and Storage
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Natural gas transported (MMBtu/d)
|
|
|
|
7,913,134
|
|
|
|
|
7,926,907
|
|
Revenues
|
|
|
$
|
756
|
|
|
|
$
|
503
|
|
Cost of products sold
|
|
|
|
565
|
|
|
|
|
327
|
|
Gross margin
|
|
|
|
191
|
|
|
|
|
176
|
|
Unrealized gains on commodity risk management activities
|
|
|
|
(5
|
)
|
|
|
|
(23
|
)
|
Operating expenses, excluding non-cash compensation expense
|
|
|
|
(45
|
)
|
|
|
|
(42
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation expense
|
|
|
|
(5
|
)
|
|
|
|
(4
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
16
|
|
|
|
|
15
|
|
Segment Adjusted EBITDA
|
|
|
$
|
152
|
|
|
|
$
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016 compared to the same period
last year, transported volumes decreased compared to the same period
last year primarily due to lower production volumes, primarily in the
Barnett Shale region, partially offset by increased volumes related to
significant new long-term transportation contracts, as well as the
addition of a new short-haul transport pipeline delivering volumes into
our Houston Pipeline system.
For the three months ended December 31, 2016 compared to the same period
last year, Segment Adjusted EBITDA related to our intrastate
transportation and storage segment increased due to the net impacts of
the following:
-
an increase of $17 million (excluding unrealized losses of $9 million)
due to higher realized gains from the buying and selling of gas along
our system;
-
an increase of $2 million from the sale of retained fuel as a fee
along our system, primarily due to higher rates in the current period,
which was partially offset by lower throughput volumes; and
-
an increase of $11 million in storage margin (excluding unrealized
losses of $8 million) due to the timing of withdrawals and sales of
natural gas from our Bammel storage cavern.
Investment in Sunoco Logistics
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Revenue
|
|
|
$
|
2,917
|
|
|
|
$
|
2,305
|
|
Cost of products sold
|
|
|
|
2,542
|
|
|
|
|
2,067
|
|
Gross margin
|
|
|
|
375
|
|
|
|
|
238
|
|
Unrealized losses on commodity risk management activities
|
|
|
|
6
|
|
|
|
|
13
|
|
Operating expenses, excluding non-cash compensation expense
|
|
|
|
(23
|
)
|
|
|
|
(42
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation expense
|
|
|
|
(24
|
)
|
|
|
|
(24
|
)
|
Inventory valuation adjustments
|
|
|
|
(27
|
)
|
|
|
|
118
|
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
20
|
|
|
|
|
14
|
|
Segment Adjusted EBITDA
|
|
|
$
|
327
|
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2016 compared to the same period
last year, Segment Adjusted EBITDA related to Sunoco Logistics increased
due to the following:
-
an increase of $30 million from Sunoco Logistics’ crude oil
operations, primarily due to improved results from Sunoco Logistics’
crude oil pipelines which benefited from the Delaware Basin Extension
and Permian Longview and Louisiana Extension pipelines that commenced
operations in the third quarter 2016. Also contributing to the
increase were higher contributions from Sunoco Logistics’ crude oil
terminals, and increased earnings attributable to the acquisition from
Vitol, Inc. and Sunoco Logistics’ joint venture interests. These
positive factors were partially offset by lower operating results from
Sunoco Logistics’ crude oil acquisition and marketing activities,
which includes transportation and storage fees related to Sunoco
Logistics’ crude oil pipelines and terminal facilities, resulting from
lower crude oil differentials compared to the prior year period; and
-
an increase of $2 million from Sunoco Logistics’ refined products
operations, primarily due to improved operating results from Sunoco
Logistics’ refined products pipelines which benefited from higher
volumes on Sunoco Logistics’ Allegheny Access pipeline; offset by
-
a decrease of $22 million from Sunoco Logistics’ NGL operations,
primarily due to lower operating results from Sunoco Logistics’ NGLs
acquisition and marketing activities driven by decreased volumes and
margins. These factors were partially offset by increased volumes and
fees from Sunoco Logistics’ Mariner NGLs projects, which includes
Sunoco Logistics’ NGLs pipelines and Marcus Hook and Nederland
facilities.
All Other
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Revenue
|
|
|
$
|
750
|
|
|
|
$
|
1,630
|
|
Cost of products sold
|
|
|
|
679
|
|
|
|
|
1,403
|
|
Gross margin
|
|
|
|
71
|
|
|
|
|
227
|
|
Unrealized (gains) losses on commodity risk management activities
|
|
|
|
7
|
|
|
|
|
(3
|
)
|
Operating expenses, excluding non-cash compensation expense
|
|
|
|
(22
|
)
|
|
|
|
(116
|
)
|
Selling, general and administrative expenses, excluding non-cash
compensation expense
|
|
|
|
(26
|
)
|
|
|
|
(43
|
)
|
Adjusted EBITDA related to unconsolidated affiliates
|
|
|
|
77
|
|
|
|
|
74
|
|
Inventory valuation adjustments
|
|
|
|
—
|
|
|
|
|
2
|
|
Other
|
|
|
|
24
|
|
|
|
|
24
|
|
Elimination
|
|
|
|
15
|
|
|
|
|
(13
|
)
|
Segment Adjusted EBITDA
|
|
|
$
|
146
|
|
|
|
$
|
152
|
|
|
|
|
|
|
|
|
Distributions from unconsolidated affiliates
|
|
|
$
|
39
|
|
|
|
$
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts reflected in our all other segment primarily include:
-
our retail marketing operations prior to the transfer of the general
partner interest of Sunoco LP from ETP to ETE in 2015 and completion
of the dropdown of remaining Retail Marketing interests from ETP to
Sunoco LP in March 2016;
-
our equity method investment in limited partnership units of Sunoco LP
consisting of 43.5 million units, representing 44.3% of Sunoco LP’s
total outstanding common units;
-
our natural gas marketing and compression operations;
-
a non-controlling interest in PES, comprising 33% of PES’ outstanding
common units; and
-
our investment in Coal Handling, an entity that owns and operates
end-user coal handling facilities.
Segment Adjusted EBITDA. For the three months ended December 31,
2016 compared to the same period last year, Segment Adjusted EBITDA
decreased primarily due to the net impact of the following:
-
a decrease of $156 million in gross margin primarily resulting from a
decrease in revenue-generating horsepower and lower project revenue
from our compression operations and unfavorable results from our
natural resources operations. This decrease in margin was partially
offset by a decrease in operating expenses of $94 million; and
-
a decrease of $17 million in selling, general and administrative
expenses resulting from lower transaction-related expenses.
SUPPLEMENTAL INFORMATION ON CAPITAL EXPENDITURES (Tabular
amounts in millions) (unaudited)
The following is a summary of capital expenditures (net of contributions
in aid of construction costs) during the year ended December 31, 2016:
|
|
|
Growth
|
|
|
Maintenance
|
|
|
Total
|
Direct(1):
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
$
|
1,133
|
|
|
$
|
122
|
|
|
$
|
1,255
|
Liquids transportation and services(2)
|
|
|
|
2,296
|
|
|
|
20
|
|
|
|
2,316
|
Interstate transportation and storage(2)
|
|
|
|
191
|
|
|
|
89
|
|
|
|
280
|
Intrastate transportation and storage
|
|
|
|
53
|
|
|
|
23
|
|
|
|
76
|
All other (including eliminations)
|
|
|
|
93
|
|
|
|
51
|
|
|
|
144
|
Total direct capital expenditures
|
|
|
|
3,766
|
|
|
|
305
|
|
|
|
4,071
|
Indirect(1):
|
|
|
|
|
|
|
|
|
|
Investment in Sunoco Logistics
|
|
|
|
1,676
|
|
|
|
63
|
|
|
|
1,739
|
Total capital expenditures
|
|
|
$
|
5,442
|
|
|
$
|
368
|
|
|
$
|
5,810
|
(1)
|
|
Indirect capital expenditures comprise those funded by our publicly
traded subsidiary; all other capital expenditures are reflected as
direct capital expenditures.
|
(2)
|
|
Includes capital expenditures related to the Bakken, Rover and Bayou
Bridge pipeline projects, which includes $572 million related to
Sunoco Logistics’ proportionate ownership in the Bakken and Bayou
Bridge projects. Capital expenditures include $961 million funded to
the Bakken pipeline project by ETP and Sunoco Logistics under a
promissory note, which amount was repaid to ETP and Sunoco Logistics
in 2017.
|
|
|
|
|
|
|
We currently expect capital expenditures for the full year 2017 to be
within the following ranges:
|
|
|
Growth
|
|
|
|
Maintenance
|
|
|
|
Low
|
|
|
High
|
|
|
|
Low
|
|
|
High
|
Direct(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream
|
|
|
$
|
935
|
|
|
|
$
|
985
|
|
|
|
|
$
|
120
|
|
|
$
|
130
|
Liquids transportation and services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL
|
|
|
|
370
|
|
|
|
|
390
|
|
|
|
|
|
20
|
|
|
|
25
|
Crude (2)
|
|
|
|
200
|
|
|
|
|
230
|
|
|
|
|
|
—
|
|
|
|
5
|
Interstate transportation and storage (2)
|
|
|
|
1,750
|
|
|
|
|
1,790
|
|
|
|
|
|
100
|
|
|
|
110
|
Intrastate transportation and storage
|
|
|
|
30
|
|
|
|
|
40
|
|
|
|
|
|
20
|
|
|
|
25
|
All other (including eliminations)
|
|
|
|
70
|
|
|
|
|
80
|
|
|
|
|
|
65
|
|
|
|
70
|
Total direct capital expenditures
|
|
|
|
3,355
|
|
|
|
|
3,515
|
|
|
|
|
|
325
|
|
|
|
365
|
Less: Project level non-recourse financing
|
|
|
|
(600
|
)
|
|
|
|
(600
|
)
|
|
|
|
|
—
|
|
|
|
—
|
Partnership level capital funding
|
|
|
$
|
2,755
|
|
|
|
$
|
2,915
|
|
|
|
|
$
|
325
|
|
|
$
|
365
|
(1)
|
|
Direct capital expenditures exclude those funded by our publicly
traded subsidiary.
|
(2)
|
|
Includes capital expenditures related to our proportionate ownership
of the Bakken, Rover and Bayou Bridge pipeline projects.
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION ON
UNCONSOLIDATED AFFILIATES (In millions) (unaudited)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2016
|
|
|
2015
|
Equity in earnings (losses) of unconsolidated affiliates:
|
|
|
|
|
|
|
Citrus
|
|
|
$
|
22
|
|
|
|
$
|
20
|
|
FEP
|
|
|
|
13
|
|
|
|
|
14
|
|
PES
|
|
|
|
(1
|
)
|
|
|
|
(25
|
)
|
MEP
|
|
|
|
9
|
|
|
|
|
12
|
|
HPC
|
|
|
|
8
|
|
|
|
|
8
|
|
AmeriGas
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
Sunoco, LLC
|
|
|
|
—
|
|
|
|
|
3
|
|
Sunoco LP(1)
|
|
|
|
(265
|
)
|
|
|
|
85
|
|
Other
|
|
|
|
14
|
|
|
|
|
(31
|
)
|
Total equity in earnings (losses) of unconsolidated affiliates
|
|
|
$
|
(201
|
)
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
Adjusted EBITDA related to unconsolidated affiliates(2):
|
|
|
|
|
|
|
Citrus
|
|
|
$
|
78
|
|
|
|
$
|
73
|
|
FEP
|
|
|
|
19
|
|
|
|
|
19
|
|
PES
|
|
|
|
8
|
|
|
|
|
(16
|
)
|
MEP
|
|
|
|
21
|
|
|
|
|
25
|
|
HPC
|
|
|
|
16
|
|
|
|
|
15
|
|
Sunoco, LLC
|
|
|
|
—
|
|
|
|
|
38
|
|
Sunoco LP
|
|
|
|
63
|
|
|
|
|
56
|
|
Other
|
|
|
|
30
|
|
|
|
|
16
|
|
Total Adjusted EBITDA related to unconsolidated affiliates
|
|
|
$
|
235
|
|
|
|
$
|
226
|
|
|
|
|
|
|
|
|
Distributions received from unconsolidated affiliates:
|
|
|
|
|
|
|
Citrus
|
|
|
$
|
32
|
|
|
|
$
|
37
|
|
FEP
|
|
|
|
18
|
|
|
|
|
18
|
|
PES
|
|
|
|
—
|
|
|
|
|
42
|
|
MEP
|
|
|
|
18
|
|
|
|
|
20
|
|
HPC
|
|
|
|
13
|
|
|
|
|
11
|
|
AmeriGas
|
|
|
|
3
|
|
|
|
|
3
|
|
Sunoco LP
|
|
|
|
36
|
|
|
|
|
39
|
|
Other
|
|
|
|
17
|
|
|
|
|
12
|
|
Total distributions received from unconsolidated affiliates
|
|
|
$
|
137
|
|
|
|
$
|
182
|
|
(1)
|
|
For the three months ended December 31, 2016, equity in earnings
(losses) of unconsolidated affiliates includes the impact of
non-cash impairments recorded by Sunoco LP, which reduced the
Partnership’s equity in earnings by $277 million.
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(2)
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These amounts represent our proportionate share of the Adjusted
EBITDA of our unconsolidated affiliates and are based on our equity
in earnings or losses of our unconsolidated affiliates adjusted for
our proportionate share of the unconsolidated affiliates’ interest,
depreciation, depletion, amortization, non-cash items and taxes.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170222006656/en/
Source: Energy Transfer Partners, L.P.
Investor Relations: Energy Transfer Helen Ryoo, Lyndsay
Hannah or Brent Ratliff, 214-981-0795 or Media Relations: Granado
Communications Group Vicki Granado, 214-599-8785 Cell:
214-498-9272
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