Energy Transfer sets Q4 records for NGL fractionation, transportation volumes

Energy Transfer (NYSE:ET) -1.8% post-market Wednesday after missing expectations for Q4 adjusted earnings and revenues, even as it moved a record amount of volumes across all core segments in 2022.

Q4 net income attributable to partners increased to $1.16B from $926M in the year-earlier quarter, and adjusted EBITDA climbed to $3.44B from $2.81B, with the gains due primarily to higher volumes across all core segments compared to the previous year and the Enable Midstream acquisition.

Q4 distributable cash flow was $1.91B, compared to $1.6B for the same period last year.

Energy Transfer (ET) said Q4 natural gas liquids fractionation volumes rose 7% Y/Y and set a new record, and single-day fractionation throughput at Mont Belvieu topped 1M barrels for the first time in the partnership's history.

NGL transportation volumes rose 5% to a record 2M bbl/day in Q4 from 1.9M bbl/day for the same period the year earlier, and midstream throughput volumes jumped 32%, also setting a new record.

Q4 NGL exports from the Nederland terminal also reached a new record, the company said.

For FY 2023, Energy Transfer (ET) guided for adjusted EBITDA of $12.9B-$13.3B, and expects growth capital expenditures of $1.6B-$1.8B and maintenance capital spending of $725M-$775M.

On its post-earnings conference call, call, Energy Transfer (ET) said that due to a high level of competition, it is taking longer than expected to reach a final investment decision on its announced Lake Charles LNG project.

The partnership also said it has contracted 25%-30% of the needed amount to make a final investment decision on its announced Warrior pipeline in Texas.

Energy Transfer (ET) units have gained 13% so far this year and 29% during the past year.