Energy Transfer(ET)2024-02-15 16:00Infrastructure and Capacity - Energy Transfer operates approximately 12,200 miles of intrastate natural gas transportation pipelines with a transportation capacity of 24 Bcf/d[23]. - The interstate transportation and storage segment includes approximately 20,090 miles of pipelines with a transportation capacity of 20.1 Bcf/d[28]. - The eighth fractionator at the Mont Belvieu NGL Complex was placed in service in August, increasing fractionation capacity to approximately 1.15 MMBbls/d[27]. - The Bear cryogenic processing plant with a capacity of 200 MMcf/d was placed in service in June in the Permian Basin[27]. - Lake Charles LNG has a send-out capacity of 1.8 Bcf/d and derives revenue from long-term contracts with Shell[30]. - The midstream segment has an aggregate processing capacity of approximately 11.4 Bcf/d, focusing on natural gas gathering, compression, treating, and processing[36]. - The NGL and refined products segment operates approximately 3,760 miles of refined products pipelines and 37 active marketing terminals, with a storage capacity of approximately 8 MMBbls[39]. - Crude oil operations include approximately 14,500 miles of trunk and gathering pipelines and a total storage capacity of approximately 65 MMBbls[41]. - The ET Fuel System has a throughput capacity of 5.2 Bcf/d and includes a natural gas storage facility with a working capacity of 6.0 Bcf[55]. - The Oasis Pipeline has a throughput capacity of approximately 1.3 Bcf/d moving west-to-east and over 750 MMcf/d moving east-to-west, enhancing the Southeast Texas System's profitability[56]. - The Bammel storage facility has a total working gas capacity of approximately 52.5 Bcf, with a peak withdrawal rate of 1.3 Bcf/d and a peak injection rate of 0.6 Bcf/d, and as of December 31, 2023, approximately 17.2 Bcf is committed under fee-based arrangements[56]. - The ETC Katy Pipeline expansions include a 36-inch East Texas extension and a 42-inch Southeast Bossier pipeline, connecting various compressor stations and enhancing access to the Katy Hub[57]. - Lake Charles LNG has approximately 9.0 Bcf of above-ground LNG storage capacity and a regasification facility with a send-out capacity of 1.8 Bcf/d, deriving revenue from long-term contracts with Shell[64]. - The South Texas assets, including the Southeast Texas System and Eagle Ford System, have a net gas processing capacity of 2,430 MMcf/d, with three processing plants having an aggregate capacity of 510 MMcf/d[70]. - The HPL System has access to significant natural gas supply reserves and is well-positioned to gather and transport gas in major producing areas in Texas, enhancing its role in the Texas natural gas markets[56]. - The OIT pipeline system spans 2,200 miles and provides natural gas transportation and storage services, with two underground storage facilities operating at a combined capacity of 24 Bcf[57]. - The Florida Gas Transmission (FGT) pipeline delivers approximately 60% of the natural gas consumed in Florida, with a throughput capacity of 4.0 Bcf/d[61]. - The Eagle Ford System includes 30-inch and 42-inch natural gas gathering pipelines with an aggregate processing capacity of 1.9 Bcf/d[73]. - The Ark-La-Tex assets consist of 11 natural gas treating facilities with a total capacity of 3.1 Bcf/d, providing access to multiple markets[74]. - The North Central Texas System processes rich gas with a capacity of 700 MMcf/d from the Barnett Shale and STACK play[76]. - The Permian Basin Gathering System has 13 processing facilities with a total capacity of 3.2 Bcf/d and a natural gas conditioning facility with a capacity of 200 MMcf/d[78]. - The Eastern region assets include approximately 600 miles of gathering pipelines and a 200 MMcf/d processing plant, supporting Mariner East and Rover pipeline systems[84]. - The Gulf Coast NGL Express pipeline has a throughput capacity of approximately 900 MBbls/d, transporting mixed NGLs to the Mont Belvieu NGL Complex[88]. - The Mont Belvieu NGL Complex has a storage capacity of approximately 60 MMBbls and includes eight fractionators for processing NGLs[89]. - The Marcus Hook Terminal has a refined products storage capacity of approximately 2 MMBbls, supporting movements on refined products pipelines[91]. - The company owns a 50% membership interest in Atoka Midstream LLC, which operates a natural gas gathering system in Oklahoma[83]. - The company has a 51% ownership interest in the White Cliffs NGL pipeline, which has a throughput capacity of approximately 90 MBbls/d[88]. - The Dakota Access Pipeline has a capacity of up to 750 MBbls/d, transporting crude oil from North Dakota to Illinois[98]. - The Nederland Terminal has a total storage capacity of approximately 30 MMBbls and can deliver over 2 MMBbls/d of crude oil[102]. Financial Performance and Strategy - Energy Transfer's primary cash requirements include distributions to partners, general and administrative expenses, and debt service[17]. - The company expects subsidiaries to fund growth capital expenditures through operational cash flows, with potential issuance of debt or equity for liquidity[18]. - Energy Transfer's intrastate segment generates revenues from demand fees, transportation fees, and storage fees[25]. - Revenues from the midstream segment are primarily derived from margins on natural gas volumes gathered, transported, and processed[37]. - The NGL segment generates revenues from dedicated and take-or-pay contracts, with fees being market-based and competitive[40]. - The crude oil acquisition and marketing activities include purchasing, storing, and transporting crude oil, maximizing value through strategic operations[48]. - The company aims to increase cash flow from fee-based businesses to provide stable cash flows and reduce exposure to commodity price changes[118]. - The business strategy includes growth through strategic acquisitions and enhancing profitability of existing assets[116]. - The company intends to leverage existing infrastructure for construction and expansion opportunities to meet increased demand for midstream services[117]. Regulatory Environment - The company is subject to anti-market manipulation laws enforced by the FERC, CFTC, and Federal Trade Commission, with potential civil penalties of up to approximately 277 million for estimated environmental liabilities, a slight decrease from 213 million and 140 million in cash and investments as of December 31, 2023[177]. - The company is subject to extensive and frequently changing environmental laws and regulations, which may require significant capital expenditures for compliance[184]. - The total accrued future estimated cost of remediation activities expected to continue through 2025 is $3 million, included in total environmental accruals[183]. - The company’s operations are subject to the Clean Air Act and comparable state laws, which may require installation of new emission controls and could significantly increase capital expenditures and operating costs[184]. - The company has initiated corrective remedial action at certain facilities, reflecting a strategy focused on eliminating unacceptable risks to human health or the environment[179]. - The company’s environmental remediation costs are often difficult to estimate due to changing regulations and technologies, leading to a range of estimates for potential liabilities[180]. - The company’s compliance with existing environmental regulations has not had a material adverse effect on its results of operations historically, but future costs may be significant[184]. - The company has reduced its carbon footprint by utilizing a diversified mix of energy sources, with approximately 20% of electrical energy sourced from solar and wind[200]. - Since 2019, the company has entered into contracts to purchase 148 megawatts of solar power to support its operations[200]. - The company has installed around 12,000 low-emission pneumatic devices across its pipeline systems, significantly reducing methane emissions[199]. - The implementation of thermal oxidizers at over 50 natural gas processing plants has led to a reduction of VOC and methane emissions by 98% or more[199]. - The company utilizes proprietary dual-drive technology in its natural gas compression business, which has reduced emissions of nitrogen oxide, carbon monoxide, CO2, and VOCs[199]. - The company operates approximately 18,000 solar panel-powered metering stations across the United States[200]. - The company has adopted leak detection and repair programs using optical gas imaging cameras at over 2,200 gas gathering and processing facilities[199]. - The company recognizes the need to decrease emissions and actively pursues opportunities to reduce its environmental footprint[198]. - The company has faced potential delays and increased costs due to regulatory changes regarding the Clean Water Act and Endangered Species Act[187][190]. - The company is subject to strict controls and potential penalties under the Clean Water Act and Oil Pollution Act for any non-compliance related to spills[188]. - The company formed an alternative energy group in February 2021 to support renewable energy projects, focusing on solar and wind farms, and carbon capture initiatives[201]. Workforce and Corporate Culture - As of December 31, 2023, the company employed a total of 13,786 employees, with 1,422 represented by labor unions[207]. - The company emphasizes the importance of employee relations and aims to attract and retain top talent through a culture of respect and safety[208]. - The company is committed to ethical operations and values diversity and inclusion within its workforce[209]. - The company recognizes the non-financial impacts of its environmental management initiatives, although they have not materially affected capital expenditures or operations[202]. - The NEPA review process can lead to delays in project approvals, impacting pipeline construction and integrity projects[204]. - The company is subject to federal OSHA requirements, which historically have not materially affected operations, but future costs are uncertain[203]. - The company acknowledges the jurisdictional complexities involving Indigenous Peoples and their potential impact on operations[205]. - The company has published additional information on its environmental initiatives in its Corporate Responsibility Report, available on its website[202].