Energy Transfer Partners Reports First Quarter Results
The results reported above reflect the consolidated results of
-
References to “ETP” refer to the entity named
Energy Transfer Partners, L.P. prior to the close of the merger andEnergy Transfer, LP subsequent to the close of the merger; -
References to “Sunoco Logistics” refer to the entity named
Sunoco Logistics Partners L.P. prior to the close of the merger; and -
References to “Post-Merger ETP” refer to the consolidated entity named
Energy Transfer Partners, L.P. subsequent to the merger.
In
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
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
The information contained in this press release is available on our website at www.energytransfer.com.
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In millions) |
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(unaudited) |
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ETP (1) | Sunoco Logistics | ||||||||||||||||
March 31, 2017 |
December 31, 2016 |
March 31, 2017 |
December 31, 2016 |
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ASSETS | |||||||||||||||||
Current assets | $ | 5,505 | $ | 5,729 | $ | 2,931 | $ | 2,906 | |||||||||
Property, plant and equipment, net | 52,532 | 50,917 | 13,149 | 12,324 | |||||||||||||
Advances to and investments in unconsolidated affiliates | 4,294 | 4,280 | 662 | 952 | |||||||||||||
Other non-current assets, net | 685 | 672 | 77 | 81 | |||||||||||||
Intangible assets, net | 5,506 | 4,696 | 1,504 | 977 | |||||||||||||
Goodwill | 3,915 | 3,897 | 1,613 | 1,609 | |||||||||||||
Total assets | $ | 72,437 | $ | 70,191 | $ | 19,936 | $ | 18,849 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities | $ | 5,476 | $ | 6,203 | $ | 2,469 | $ | 2,138 | |||||||||
Long-term debt, less current maturities | 31,648 | 31,741 | 6,760 | 7,313 | |||||||||||||
Long-term notes payable – related company | — | 250 | — | — | |||||||||||||
Non-current derivative liabilities | 72 | 76 | — | — | |||||||||||||
Deferred income taxes | 4,432 | 4,394 | 256 | 257 | |||||||||||||
Other non-current liabilities | 1,053 | 952 | 130 | 133 | |||||||||||||
Commitments and contingencies | |||||||||||||||||
Series A Preferred Units | — | 33 | — | — | |||||||||||||
Redeemable noncontrolling interests | 15 | 15 | 15 | 15 | |||||||||||||
Redeemable Limited Partners’ interests | — | — | 300 | 300 | |||||||||||||
Equity: | |||||||||||||||||
Total partners’ capital | 20,106 | 18,642 | 8,979 | 8,660 | |||||||||||||
Noncontrolling interest | 9,635 | 7,885 | 1,027 | 33 | |||||||||||||
Total equity | 29,741 | 26,527 | 10,006 | 8,693 | |||||||||||||
Total liabilities and equity | $ | 72,437 | $ | 70,191 | $ | 19,936 | $ | 18,849 |
(1) |
For the periods presented, Sunoco Logistics is included in ETP’s consolidated balance sheets. | |
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In millions, except per unit data) |
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(unaudited) |
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Actual (1) | ||||||||||||||||||||||||||||||||
ETP | Sunoco Logistics | Pro Forma for Merger | ||||||||||||||||||||||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
Three Months Ended March 31, |
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2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||
REVENUES | $ | 6,895 | $ | 4,481 | $ | 3,702 | $ | 1,777 | $ | 6,895 | $ | 4,481 | ||||||||||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||||||||||||||||||
Cost of products sold | 5,192 | 2,968 | 2,891 | 1,413 | 5,192 | 2,968 | ||||||||||||||||||||||||||
Operating expenses | 379 | 348 | 21 | 23 | 379 | 348 | ||||||||||||||||||||||||||
Depreciation, depletion and amortization | 560 | 470 | 125 | 106 | 560 | 470 | ||||||||||||||||||||||||||
Selling, general and administrative | 110 | 81 | 32 | 26 | 110 | 81 | ||||||||||||||||||||||||||
Impairment charge and others | — | — | (2 | ) | 26 | — | — | |||||||||||||||||||||||||
Total costs and expenses | 6,241 | 3,867 | 3,067 | 1,594 | 6,241 | 3,867 | ||||||||||||||||||||||||||
OPERATING INCOME | 654 | 614 | 635 | 183 | 654 | 614 | ||||||||||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||||||||||||
Interest expense, net | (339 | ) | (319 | ) | (40 | ) | (39 | ) | (339 | ) | (319 | ) | ||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 73 | 76 | 9 | 8 | 73 | 76 | ||||||||||||||||||||||||||
Gains (losses) on interest rate derivatives | 5 | (70 | ) | — | — | 5 | (70 | ) | ||||||||||||||||||||||||
Other, net | 26 | 17 | 1 | (1 | ) | 26 | 17 | |||||||||||||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) | 419 | 318 | 605 | 151 | 419 | 318 | ||||||||||||||||||||||||||
Income tax expense (benefit) | 55 | (58 | ) | 10 | 5 | 55 | (58 | ) | ||||||||||||||||||||||||
NET INCOME | 364 | 376 | 595 | 146 | 364 | 376 | ||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 40 | 65 | 10 | 1 | 36 | 18 | ||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO PARTNERS | 324 | 311 | 585 | 145 | 328 | 358 | ||||||||||||||||||||||||||
General Partner’s interest in net income | 206 | 297 | 113 | 90 | 222 | 268 | ||||||||||||||||||||||||||
Class H Unitholder’s interest in net income | 98 | 79 | N/A | N/A | — | — | ||||||||||||||||||||||||||
Class I Unitholder’s interest in net income | — | 2 | N/A | N/A | — | 2 | ||||||||||||||||||||||||||
Common Unitholders’ interest in net income (loss) | $ | 20 | $ | (67 | ) | $ | 472 | $ | 55 | $ | 106 | $ | 88 | |||||||||||||||||||
NET INCOME (LOSS) PER COMMON UNIT: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.02 | $ | (0.15 | ) | $ | 1.42 | $ | 0.18 | $ | 0.09 | $ | 0.08 | |||||||||||||||||||
Diluted | $ | 0.02 | $ | (0.15 | ) | $ | 1.42 | $ | 0.18 | $ | 0.09 | $ | 0.08 | |||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON UNITS OUTSTANDING: | ||||||||||||||||||||||||||||||||
Basic | 548.2 | 490.2 | 331.8 | 282.5 | 1,087.1 | 950.8 | ||||||||||||||||||||||||||
Diluted | 549.6 | 490.2 | 332.8 | 283.1 | 1,090.2 | 951.4 |
(1) |
Reflects pre-merger results for ETP and Sunoco Logistics. For the periods presented, Sunoco Logistics is included in ETP’s consolidated statements of operations. | |
SUPPLEMENTAL INFORMATION |
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(Dollars and units in millions) |
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(unaudited) |
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Actual (1) | ||||||||||||||||||||||||||||||||
ETP | Sunoco Logistics | Pro Forma for Merger | ||||||||||||||||||||||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
Three Months Ended March 31, |
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2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||
Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow (a): | ||||||||||||||||||||||||||||||||
Net income | $ | 364 | $ | 376 | $ | 595 | $ | 146 | $ | 364 | $ | 376 | ||||||||||||||||||||
Interest expense, net | 339 | 319 | 40 | 39 | 339 | 319 | ||||||||||||||||||||||||||
Income tax expense (benefit) | 55 | (58 | ) | 10 | 5 | 55 | (58 | ) | ||||||||||||||||||||||||
Depreciation, depletion and amortization | 560 | 470 | 125 | 106 | 560 | 470 | ||||||||||||||||||||||||||
Non-cash compensation expense | 23 | 19 | 6 | 5 | 23 | 19 | ||||||||||||||||||||||||||
(Gains) losses on interest rate derivatives | (5 | ) | 70 | — | — | (5 | ) | 70 | ||||||||||||||||||||||||
Unrealized (gains) losses on commodity risk management activities | (64 | ) | 63 | (24 | ) | 13 | (64 | ) | 63 | |||||||||||||||||||||||
Inventory valuation adjustments | (2 | ) | 26 | (2 | ) | 26 | (2 | ) | 26 | |||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (73 | ) | (76 | ) | (9 | ) | (8 | ) | (73 | ) | (76 | ) | ||||||||||||||||||||
Adjusted EBITDA related to unconsolidated affiliates | 239 | 219 | 19 | 16 | 239 | 219 | ||||||||||||||||||||||||||
Gain on sale of investment in affiliate | — | — | (483 | ) | — | — | — | |||||||||||||||||||||||||
Other, net | (22 | ) | (16 | ) | 1 | 1 | (22 | ) | (16 | ) | ||||||||||||||||||||||
Adjusted EBITDA (consolidated) | 1,414 | 1,412 | 278 | 349 | 1,414 | 1,412 | ||||||||||||||||||||||||||
Adjusted EBITDA related to unconsolidated affiliates | (239 | ) | (219 | ) | (19 | ) | (16 | ) | (239 | ) | (219 | ) | ||||||||||||||||||||
Distributable cash flow from unconsolidated affiliates | 144 | 144 | 11 | 8 | 144 | 144 | ||||||||||||||||||||||||||
Interest expense, net | (339 | ) | (319 | ) | (40 | ) | (39 | ) | (339 | ) | (319 | ) | ||||||||||||||||||||
Amortization included in interest expense | (1 | ) | (7 | ) | — | — | (1 | ) | (7 | ) | ||||||||||||||||||||||
Current income tax (expense) benefit | (1 | ) | 1 | (11 | ) | (5 | ) | (1 | ) | 1 | ||||||||||||||||||||||
Maintenance capital expenditures | (60 | ) | (59 | ) | (13 | ) | (13 | ) | (60 | ) | (59 | ) | ||||||||||||||||||||
Other, net | 16 | 3 | (1 | ) | — | 16 | 3 | |||||||||||||||||||||||||
Distributable Cash Flow (consolidated) | 934 | 956 | 205 | 284 | 934 | 956 | ||||||||||||||||||||||||||
Distributable Cash Flow attributable to Sunoco Logistics (100%) | (194 | ) | (283 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Distributions from Sunoco Logistics to ETP | 139 | 125 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||
Distributable Cash Flow attributable to PennTex Midstream Partners, LP (100%) | (19 | ) | — | N/A | N/A | (19 | ) | — | ||||||||||||||||||||||||
Distributions from PennTex Midstream Partners, LP to ETP (b) | 8 | — | N/A | N/A | 8 | — | ||||||||||||||||||||||||||
Distributable cash flow attributable to noncontrolling interest in other consolidated subsidiaries | (12 | ) | (7 | ) | (11 | ) | (1 | ) | (23 | ) | (8 | ) | ||||||||||||||||||||
Distributable Cash Flow attributable to the partners of ETP | 856 | 791 | 194 | 283 | 900 | 948 | ||||||||||||||||||||||||||
Transaction-related expenses | 3 | 2 | 4 | — | 7 | 2 | ||||||||||||||||||||||||||
Distributable Cash Flow attributable to the partners of ETP, as adjusted | $ | 859 | $ | 793 | $ | 198 | $ | 283 | $ | 907 | $ | 950 |
(1) |
Reflects pre-merger results for ETP and Sunoco Logistics. | |
Pro Forma for Merger | ||||||||||
Three Months Ended March 31, |
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2017 | 2016 | |||||||||
Distributions to partners (c): | ||||||||||
Limited Partners: | ||||||||||
Common Units held by public | $ | 567 | $ | 473 | ||||||
Common Units held by parent (d) | 15 | 2 | ||||||||
General Partner interests | 4 | 3 | ||||||||
Incentive Distribution Rights (“IDRs”) held by parent | 377 | 303 | ||||||||
IDR relinquishments | (157 | ) | (34 | ) | ||||||
Total distributions to be paid to partners | $ | 806 | $ | 747 | ||||||
Common Units outstanding – end of period (c)(e) | 1,084.6 | 965.3 | ||||||||
Distribution coverage ratio (f) | 1.13x | 1.27x | ||||||||
(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
We define 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 our 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
We define 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 our subsidiaries, the Distributable Cash Flow generated by our subsidiaries may not be available to be distributed to our partners. In order to reflect the cash flows available for distributions to our partners, we have reported Distributable Cash Flow attributable to partners, 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 our partners 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 partners is net of distributions to be paid by the subsidiary to the noncontrolling interests.
For Distributable Cash Flow attributable to partners, as adjusted, certain transaction-related and non-recurring expenses that are included in net income are excluded.
(b) Amount reflects distributions for the first quarter of 2017, to be
paid by PennTex on
(c) 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.
(d) For the three months ended March 31, 2016, the “Pro Forma for Merger” column excludes distributions on Sunoco Logistics Common Units held by ETP as those units were cancelled in connection with the closing of the merger.
(e) For the three months ended March 31, 2017 and 2016, the “Pro Forma for Merger” columns reflect the sum of (i) the ETP Common Units outstanding at the end of period multiplied by a factor of 1.5x and (ii) the Sunoco Logistics Common Units outstanding at end of period minus 67.1 million Sunoco Logistics Common Units held by ETP, which units were cancelled in connection with the closing of the merger.
(f) Distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, 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) |
ETP’s Segments
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Segment Adjusted EBITDA: | ||||||||
Midstream | $ | 320 | $ | 263 | ||||
Liquids transportation and services | 259 | 227 | ||||||
Interstate transportation and storage | 265 | 292 | ||||||
Intrastate transportation and storage | 169 | 179 | ||||||
Investment in Sunoco Logistics | 278 | 349 | ||||||
All other | 123 | 102 | ||||||
$ | 1,414 | $ | 1,412 | |||||
Midstream
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Gathered volumes (MMBtu/d) | 10,231,895 | 9,851,105 | ||||||
NGLs produced (Bbls/d) | 445,004 | 430,973 | ||||||
Equity NGLs (Bbls/d) | 25,521 | 29,533 | ||||||
Revenues | $ | 1,637 | $ | 1,092 | ||||
Segment Adjusted EBITDA | $ | 320 | $ | 263 | ||||
Gathered volumes and NGL production increased primarily due to recent
acquisitions, including PennTex, and gains in the Permian and Northeast
regions, partially offset by basin declines in the
For the three months ended March 31, 2017 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment increased due to the net effects of the following:
-
an increase of
$45 million in non-fee based margin due to higher crude oil and NGL prices; -
an increase of $17 million in non-fee based margin due to gains in the
Permian, partially offset by declines in the
South Texas ,North Texas , and Mid-Continent/Panhandle regions; -
an increase of $13 million in fee based revenue due to growth in the
Permian, Northeast and
North Louisiana , including recent acquisitions, offset by declines inSouth Texas ,North Texas and the Mid-Continent/Panhandle regions; and - an increase of $13 million in fee based revenue due to the PennTex acquisition; partially offset by
- a decrease of $5 million (excluding unrealized gains of $16 million) in non-fee based margin due to higher benefit from settled derivatives used to hedge commodity margins;
- an increase of $16 million in operating expenses primarily due to recent acquisitions, including PennTex; and
- an increase of $11 million in general and administrative expenses primarily due to a decrease of $4 million in capitalized overhead, a $3 million increase in shared services allocation, a $2 million increase in insurance allocation, and $2 million additional costs from the PennTex acquisition.
Liquids Transportation and Services
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Liquids transportation volumes (Bbls/d) | 739,982 | 537,251 | ||||||
NGL fractionation volumes (Bbls/d) | 433,473 | 362,906 | ||||||
Revenues | $ | 1,622 | $ | 919 | ||||
Segment Adjusted EBITDA | $ | 259 | $ | 227 | ||||
NGL transportation volumes increased in most major producing regions,
including the Permian,
Average daily fractionated volumes increased for the three months ended
March 31, 2017 compared to the same period last year primarily due to
the commissioning of our fourth fractionator at
For the three months ended March 31, 2017 compared to the same period last year, Segment Adjusted EBITDA related to our liquids transportation and services segment increased due to net impact of the following:
- an increase of $37 million in transportation fees due to higher NGL and crude transport volumes;
- an increase of $17 million in processing and fractionation margin (excluding changes in unrealized gains of $4 million) primarily due to higher NGL volumes from most major producing regions, as noted above; and
-
an increase of
$8 million in storage margin primarily due to increased volumes from ourMont Belvieu fractionators; partially offset by -
a decrease of
$8 million in other margin (excluding changes in unrealized gains of$31 million ) primarily due to the timing of the recognition of margin from optimization activities; -
an increase of $19 million in operating expenses primarily due to
increased costs associated with our fourth fractionator at
Mont Belvieu and new pipelines placed in service; and - an increase of $2 million in general and administrative expenses due to lower capitalized overhead as a result of reduced capital spending.
Interstate Transportation and Storage
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Natural gas transported (MMBtu/d) | 5,655,558 | 5,835,046 | ||||||
Natural gas sold (MMBtu/d) | 16,905 | 17,177 | ||||||
Revenues | $ | 235 | $ | 259 | ||||
Segment Adjusted EBITDA | $ | 265 | $ | 292 | ||||
Distributions from unconsolidated affiliates | $ | 114 | $ | 73 | ||||
Transported volumes decreased primarily due to mild weather; in particular, volumes on the Transwestern pipeline decreased by 64,827 MMBtu/d. In addition, volumes on the Sea Robin pipeline decreased 37,075 MMBtu/d due to producer maintenance and production declines.
Segment Adjusted EBITDA. For the three months ended March 31,
2017 compared to the same period last year, Segment Adjusted EBITDA
related to our interstate transportation and storage segment decreased
due to decreases in revenues of
The increase in cash distributions from unconsolidated affiliates is due to increased distributions from MEP.
Intrastate Transportation and Storage
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Natural gas transported (MMBtu/d) | 7,807,045 | 8,229,972 | ||||||
Revenues | $ | 816 | $ | 558 | ||||
Segment Adjusted EBITDA | $ | 169 | $ | 179 | ||||
Distributions from unconsolidated affiliates | $ | 4 | $ | 15 | ||||
Transported volumes decreased primarily due to lower production volumes
in the
Segment Adjusted EBITDA. For the three months ended March 31, 2017 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment decreased due to the net impacts of the following:
-
a decrease of $10 million in transportation fees due to renegotiated
contracts resulting in lower demand volumes beginning in the second
quarter of 2016 on our ET Fuel pipeline, partially offset by an
increase of
$5 million due to fees from renegotiated and newly initiated fixed fee contracts primarily on our Houston Pipeline system; - a decrease of $8 million in storage margin (excluding net changes in unrealized amounts of $18 million related to fair value inventory adjustments and unrealized gains and losses on derivatives), as discussed below; and
- an increase of $5 million in operating expenses primarily due to higher outside services labor costs and compression fuel expenses; partially offset by
- an increase of $7 million in natural gas sales and other (excluding changes in unrealized gains of $4 million) primarily due to higher realized gains from the buying and selling of gas along our system; and
-
an increase of $5 million in retained fuels (excluding changes in
unrealized gains of $1 million) primarily due to higher market prices.
The average spot price at the Houston Ship Channel location increased
56% for the quarter ended
March 31, 2017 compared to the same period last year.
Investment in
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Revenues | $ | 3,219 | $ | 1,777 | ||||
Segment Adjusted EBITDA | $ | 278 | $ | 349 | ||||
Distributions from unconsolidated affiliates | $ | 8 | $ | 5 | ||||
See discussion of Sunoco Logistics’ segments in the following section.
All Other
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Revenues | $ | 770 | $ | 854 | ||||
Segment Adjusted EBITDA | $ | 123 | $ | 102 | ||||
Distributions from unconsolidated affiliates | $ | 38 | $ | 34 | ||||
Amounts reflected in our all other segment primarily include:
-
our equity method investment in limited partnership units of
Sunoco LP consisting of 43.5 million units, representing 43.7% 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.
For the three months ended March 31, 2017 compared to the same period
last year, Segment Adjusted EBITDA related to our all other segment
increased primarily due to an increase of $22 million in Adjusted EBITDA
related to our investment in PES. The three months ended
Sunoco Logistics’ Segments
Crude Oil
Three Months Ended March 31, |
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2017 | 2016 | |||||||
Pipeline throughput (thousands of barrels per day ("bpd")) (1) | 2,706 | 2,258 | ||||||
Terminal throughput (thousands of bpd) (1) | 1,917 | 1,517 | ||||||
Revenues | $ | 2,557 | $ | 1,380 | ||||
Segment Adjusted EBITDA | $ | 147 | $ | 224 | ||||
(1) |
Excludes amounts attributable to equity interests which are not consolidated. | |
Segment Adjusted EBITDA. For the three months ended March 31,
2017 compared to the same period last year, Segment Adjusted EBITDA
related to Sunoco Logistics’ Crude Oil segment decreased primarily due
to the impact of LIFO inventory accounting on Sunoco Logistics’ contango
inventory positions resulting in approximately $60 million of positive
earnings during the first quarter 2016, compared to approximately
$50 million of negative earnings during the first quarter 2017. The
unfavorable LIFO timing is expected to be reversed in future periods as
commodity prices fall or the inventory positions are liquidated.
Excluding these inventory timing impacts, Adjusted EBITDA for the crude
oil segment increased $33 million compared to the prior year period.
This increase related to improved results from Sunoco Logistics’ crude
oil pipelines and terminalling activities of $56 million which was
largely attributable to expansion capital projects which commenced
operations in 2016, the acquisition of
Natural Gas Liquids
Three Months Ended March 31, |
||||||||
2017 | 2016 | |||||||
Pipeline throughput (thousands of bpd) | 280 | 269 | ||||||
Terminal throughput (thousands of bpd) | 264 | 220 | ||||||
Revenues | $ | 385 | $ | 233 | ||||
Segment Adjusted EBITDA | $ | 82 | $ | 74 | ||||
Segment Adjusted EBITDA. For the three months ended March 31,
2017 compared to the same period last year, Segment Adjusted EBITDA
related to Sunoco Logistics’ Natural Gas Liquids segment increased
primarily due to increased volumes and fees from Sunoco Logistics’
Mariner NGLs projects of $12 million, which includes Sunoco Logistics’
NGLs pipelines and terminal facilities at Marcus Hook and
Refined Products
Three Months Ended March 31, |
||||||||
2017 | 2016 | |||||||
Pipeline throughput (thousands of bpd) (1) | 624 | 551 | ||||||
Terminal throughput (thousands of bpd) (1) | 542 | 532 | ||||||
Revenues | $ | 277 | $ | 164 | ||||
Segment Adjusted EBITDA | $ | 49 | $ | 51 | ||||
(1) |
Excludes amounts attributable to equity interests which are not consolidated. | |
Segment Adjusted EBITDA. For the three months ended March 31, 2017 compared to the same period last year, Segment Adjusted EBITDA related to Sunoco Logistics’ Refined Products segment decreased due to lower results from Sunoco Logistics’ refined products acquisition and marketing activities of $7 million. This decrease was partially offset by improved results from Sunoco Logistics’ refined products pipelines of $4 million and improved contributions from joint venture interests of $2 million.
SUPPLEMENTAL INFORMATION ON CAPITAL EXPENDITURES |
(In millions) |
(unaudited) |
The following is a summary of capital expenditures (net of contributions
in aid of construction costs) for the three months ended
Growth | Maintenance | Total | ||||||||||
ETP: | ||||||||||||
Midstream | $ | 234 | $ | 16 | $ | 250 | ||||||
Liquids transportation and services(1) | 105 | 5 | 110 | |||||||||
Interstate transportation and storage(1) | 288 | 9 | 297 | |||||||||
Intrastate transportation and storage | 16 | 5 | 21 | |||||||||
All other (including eliminations) | 47 | 12 | 59 | |||||||||
Total capital expenditures | 690 | 47 | 737 | |||||||||
Sunoco Logistics: | ||||||||||||
Crude oil | 51 | 5 | 56 | |||||||||
Natural gas liquids | 445 | 1 | 446 | |||||||||
Refined products | 10 | 7 | 17 | |||||||||
Total capital expenditures | $ | 1,196 | $ | 60 | $ | 1,256 | ||||||
(1) |
Includes capital expenditures related to the Bakken, Rover and Bayou Bridge pipeline projects, but excludes amounts related to Sunoco Logistics’ proportionate ownership in the Bakken and Bayou Bridge pipeline projects. | |
SUPPLEMENTAL INFORMATION ON LIQUIDITY |
|||||||||||
(In millions) |
|||||||||||
(unaudited) |
|||||||||||
Facility Size |
Funds Available at |
Maturity Date | |||||||||
Legacy ETP Revolving Credit Facility | $ | 3,750 | $ | 3,217 | November 18, 2019 | ||||||
Legacy Sunoco Logistics Revolving Credit Facility | 2,500 | 1,760 | March 20, 2020 | ||||||||
Legacy Sunoco Logistics 364-Day Credit Facility | 1,000 | 370 | May 26, 2017 | ||||||||
$ | 7,250 | $ | 5,347 | ||||||||
SUPPLEMENTAL INFORMATION ON UNCONSOLIDATED AFFILIATES |
||||||||||
(In millions) |
||||||||||
(unaudited) |
||||||||||
Three Months Ended March 31, |
||||||||||
2017 | 2016 | |||||||||
Equity in earnings (losses) of unconsolidated affiliates: | ||||||||||
Citrus | $ | 21 | $ | 21 | ||||||
FEP | 12 | 14 | ||||||||
PES | 14 | (6 | ) | |||||||
MEP | 10 | 11 | ||||||||
HPC | 7 | 8 | ||||||||
AmeriGas | 9 | (2 | ) | |||||||
Sunoco LP | (14 | ) | 15 | |||||||
Other | 14 | 15 | ||||||||
Total equity in earnings of unconsolidated affiliates | $ | 73 | $ | 76 | ||||||
Adjusted EBITDA related to unconsolidated affiliates: | ||||||||||
Citrus | $ | 75 | $ | 74 | ||||||
FEP | 18 | 19 | ||||||||
PES | 26 | 4 | ||||||||
MEP | 22 | 24 | ||||||||
HPC | 15 | 15 | ||||||||
Sunoco LP | 54 | 57 | ||||||||
Other | 29 | 26 | ||||||||
Total Adjusted EBITDA related to unconsolidated affiliates | $ | 239 | $ | 219 | ||||||
Distributions received from unconsolidated affiliates: | ||||||||||
Citrus | $ | 41 | $ | 35 | ||||||
FEP | — | 17 | ||||||||
AmeriGas | 3 | 3 | ||||||||
MEP | 73 | 21 | ||||||||
HPC | — | 12 | ||||||||
Sunoco LP | 35 | 30 | ||||||||
Other | 20 | 17 | ||||||||
Total distributions received from unconsolidated affiliates | $ | 172 | $ | 135 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006671/en/
Source:
Energy Transfer
Investor Relations:
Lyndsay Hannah,
Brent Ratliff, Helen Ryoo, 214-981-0795
or
Media Relations:
Vicki
Granado, 214-981-0761