Energy Transfer Reports Strong Financial Results for Q4 2023, Expects Continued Growth

Energy Transfer, a leading energy infrastructure company, announced its financial results for the fourth quarter of 2023. The company reported adjusted EBITDA of $3.6 billion, a 5% increase compared to the previous year. Additionally, Energy Transfer generated record volumes across all segments and saw increased export volumes of natural gas liquids (NGLs).

For the full year of 2023, Energy Transfer reported adjusted EBITDA of $13.7 billion, a partnership record and a 5% increase over the previous year. DCF attributable to the partners of Energy Transfer was $2 billion, resulting in excess cash flow after distributions of around $3.6 billion. The company moved record volumes through its NGL pipelines and fractionators, as well as crude oil and midstream segments.

Energy Transfer also highlighted its achievements regarding its balance sheet and credit ratings. The company's senior unsecured credit rating was upgraded to BBB by Standard & Poor's in 2023, and recently, Fitch also upgraded Energy Transfer's senior unsecured credit rating to BBB. They aim to reach the low end of their leverage range, and as of December 31, 2023, the total available liquidity under their revolving credit facilities was approximately $3.56 billion.

In terms of growth projects, Energy Transfer provided updates on several expansion initiatives. Construction is underway on the expansion of NGL export capacity at the Nederland terminal, which is expected to be completed by mid-2025. The company is also building new refrigerated storage at Nederland to increase its butane and propane storage capacity. Moreover, they have begun expanding processing capacity at their cryogenic processing plants in West and South Texas.

Regarding acquisitions, Energy Transfer completed the acquisition of Crestwood Equity Partners in November 2023. The integration of the acquired assets is going well, and the company expects to achieve approximately $80 million of annual cost synergies by 2026. They are also exploring commercial and operational synergies to optimize their systems and assets.

Looking ahead, Energy Transfer provided its 2024 guidance. The company expects growth capital expenditures to be between $2.4 billion and $2.6 billion, primarily in the NGL and refined products and midstream segments. Additionally, they anticipate adjusted EBITDA to be between $14.5 billion and $14.8 billion in 2024.

Overall, Energy Transfer's strong financial results and continued focus on growth projects position the company for future success in the energy infrastructure sector.