Energy Transfer reported higher volumes across all segments in fourth-quarter 2022, while notching records in NGL fractionation and transportation and midstream throughput. 

Net income for the quarter was $1.16 billion, or 34 cents/unit, which was up 25.4% year-over-year (yoy), but came up short of analysts’ consensus estimate of 39 cents/unit. Net income for the year totaled $4.76 billion, down 13.1% yoy.

Quarterly revenues totaled $20.5 billion, up 9.9% yoy, but also below the consensus estimate of $24.8 billion. Full-year revenue jumped 33.2% yoy to $89.88 billion.

The company’s stock price was $13.19 at midday on Feb. 16, up 24 cents from its open. 
 
 

ET Stock Price
Energy Transfer’s stock performance from the start of 2022 through Feb. 14. (Source: Refinitive)
ET EPS Comparison
Energy Transfer quarterly earnings per unit, compared to analyst estimates. (Source: Energy Transfer LP)

Energy Transfer’s full-year 2022 EBITDA of $13.1 billion set a record for the company. Fourth-quarter EBITDA of $3.44 billion surpassed the same period in 2021 by 22.3%. 

Business segments

The company’s NGL and refined products transportation and services unit led the way in the quarter with EBITDA of $928 million, up 25.6% yoy, on revenues of $5.75 billion.

NGL transportation volumes set a record of 1.97 MMbbl in the quarter, up 5.3% yoy. Higher volumes from the Permian Basin and Eagle Ford shale accounted for the increase. NGL exports from the Nederland, Texas terminal set a record in 2022 and higher volumes are expected in 2023, co-CEO Tom Long told analysts during the earnings call on Feb. 15.

Ethane shipments alone totaled 43 MMbbl in 2022 and are expected to reach 60 MMbbl in 2023.

“In total, we continue to export more NGL than any other company or country with our percentage of worldwide NGL exports remaining at approximately 20% of the world market,” Long said.

Midstream EBITDA totaled $632 million in the quarter, up 15.5% yoy. Gathered natural gas volumes soared 31.6% yoy to 19.43 MMBtu/d. Long said there was increased throughput across operating regions, and the acquisitions of the Enable Oklahoma Intrastate Transmission system assets and the Woodford Express pipeline contributed to that total.

Quarterly EBIDTA rose sharply yoy in the transportation and storage segments for intrastate (58%) and interstate (24.4%). Crude oil transportation was up 7.1% yoy.

Energy Transfer has a number of projects in the works. Among them:

  • Lake Charles LNG in Louisiana, which has taken longer to get to final investment decision than expected but is buttressed by growing global gas demand;
  • Optimization at the Marcus Hook, Pa. terminal to add ethane refrigeration and storage capacity;
  • Additional fractionation capacity at Mont Belvieu, Texas to bring the total to 1.15 MMbbl/d;
  • The Bear Gas Processing Plant in the Permian Basin, a 200 MMcf/d facility expected to come online in second-quarter 2023; and 
  • The Gulf Run pipeline, which will boast a capacity of 1.65 Bcf/d and move gas to the Golden Pass LNG plant on the Gulf Coast.
  • Long also made it clear that Energy Transfer would continue to grow.

“We don’t know when the next project will be announced coming out of the Permian Basin,” he told analysts. “We do believe it will be ours when it happens.”