Energy Transfer LP Announces First Quarter 2024 Earnings, Misses EPS Estimates, But Shows Revenue…

  • Net income: $1.24 billion was reported, lower than the estimated $1.259 billion.

  • Earnings per share (EPS): Achieved $0.32 per common unit, below the $0.37 estimate.

  • Income: It reached $21.629 billion, surpassing the estimate of $20.939 billion.

  • Adjusted EBITDA: Up to $3.88 billion from $3.43 billion year-over-year.

  • Distributable cash flow: It rose to $2.36 billion, up from $2.01 billion the previous year.

  • Investment expenditure: This quarter allocated $461 million for development and $115 million for sustainment.

  • Strategic development: Approved projects to increase the efficiency of electricity generation based on natural gas and NGL pipelines.

On May 8, 2024, Energy Transfer LP (NYSE:ET) released its financial results for the first quarter ended March 31, 2024 via an 8-K filing. The company reported net income attributable to partners of $1.24 billion and underlying net income per common unit of $0.32, which was slightly worse than the analyst’s EPS estimate of $0.37. Despite missing earnings per share, Energy Transfer showed significant revenue growth of $21.629 billion, exceeding the expected $20.939 billion.

Energy Transfer LP Reports Q1 2024 Earnings, Misses EPS Estimates, But Shows Revenue GrowthEnergy Transfer LP Reports Q1 2024 Earnings, Misses EPS Estimates, But Shows Revenue Growth

Energy Transfer LP Reports Q1 2024 Earnings, Misses EPS Estimates, But Shows Revenue Growth

Energy Transfer operates an extensive network of energy assets throughout the United States, including pipelines and storage facilities for natural gas, crude oil and natural gas liquids. The company’s strategic assets play a key role in the midstream sector, providing essential services across various production basins.

The most important financial and operational information

The first quarter of 2024 saw significant operational achievements for Energy Transfer, characterized by record crude oil transportation volumes increasing by 44% and significant growth in crude oil terminal and NGL fractionation volumes. Financial highlights include promising growth in adjusted EBITDA to $3.88 billion from $3.43 billion in the prior-year quarter and distributable cash flow (DCF) of $2.36 billion, up from $2.01 billion year-over-year year.

Strategically, Energy Transfer continues to expand its capabilities with new projects aimed at improving its infrastructure and service offering. This includes approving natural gas-fired power generation facilities and upgrading pipelines to increase NGL reception capacity, which is expected to positively impact future operational efficiency and throughput.

Insight into your balance sheet and cash flow

As of March 31, 2024, Energy Transfer reported total assets of $115.789 billion, up from $113.698 billion at the end of 2023. The balance sheet remains strong, with a significant portion of the assets being long-term in nature. The company’s liquidity position is solid and there were no outstanding borrowings under the revolving credit facility at the end of the quarter.

The company’s cash flow performance during the quarter was also strong, supporting both operational needs and strategic growth initiatives. Development and maintenance capital expenditures totaled $576 million, highlighting ongoing investments in reliability and asset expansion projects.

Market position and future prospects

Energy Transfer uses a diversified portfolio that limits the risk associated with commodity price fluctuations. Most of the company’s revenues are generated from paid activities, which ensures the stability of cash flows. Looking ahead, Energy Transfer raised its full-year 2024 adjusted EBITDA guidance to between $15.0 billion and $15.3 billion, reflecting confidence in its operational capabilities and go-to-market strategy.

The company’s strategic initiatives, including modernizations and new projects, aim to further strengthen its market position and support sustainable growth. Investors and stakeholders can expect a continued focus on driving shareholder value through operational excellence and strategic development.

For detailed information and further discussion of the first quarter results, interested parties are encouraged to participate in the scheduled conference call or view the webcast available on the company’s website.

For more information, check out the full 8k Gains publication. (here) published by Energy Transfer LP.

This article first appeared on GuruFocus.