Energy Transfer(US:ET)2022-02-17 02:07Financial Data and Key Metrics Changes - For the full year 2021, adjusted EBITDA was $13 billion, a significant increase from 2020, and in line with expectations [6] - DCF attributable to partners was $8.2 billion, resulting in excess cash flow after distributions of approximately $6.4 billion [6] - For Q4 2021, consolidated adjusted EBITDA was $2.8 billion compared to $2.6 billion for Q4 2020, and DCF attributable to partners was $1.6 billion compared to $1.4 billion for the same period last year [34] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA was $739 million, up from $703 million year-over-year, driven by higher transportation and terminal services margins [38] - Crude oil segment adjusted EBITDA was $533 million, compared to $517 million for the same period last year, due to higher transportation volumes [40] - Midstream segment adjusted EBITDA increased to $547 million from $390 million year-over-year, benefiting from favorable NGL and natural gas prices [41] - Intrastate segment adjusted EBITDA was $274 million, up from $233 million, primarily due to increased firm transportation volumes [45] Market Data and Key Metrics Changes - NGL transportation volumes reached a record 1.9 million barrels per day, compared to 1.4 million barrels per day for the same period last year [39] - The percentage of worldwide NGL exports has doubled over the last two years, capturing nearly 20% of the world market [18] Company Strategy and Development Direction - The company completed the acquisition of Enable Midstream Partners, which is expected to generate over $100 million in annual run rate cost savings synergies [10] - The company is focusing on expanding its alternative energy initiatives, including carbon capture projects and renewable energy developments [30][32] - Future increases to the distribution level will be evaluated quarterly, with a goal of returning to the previous level of $1.22 annually [36][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational reliability during extreme weather conditions, noting that recent winter weather was less severe than previous years [12] - The company anticipates continued strong performance in 2022, with adjusted EBITDA guidance of $11.8 billion to $12.2 billion [46] - Management highlighted the importance of financial flexibility and plans to pay down debt while investing in growth opportunities [50][53] Other Important Information - The company announced a quarterly cash distribution of $0.175 per common unit, representing a 15% increase over the previous quarter [7][36] - Total available liquidity under the revolving credit facility was slightly over $2 billion as of December 31, 2021 [49] Q&A Session Summary Question: Interest in long-term contracts for natural gas takeaway from the Permian - Management noted strong interest from customers for the new pipeline project, emphasizing the advantages of their system over competitors [56][58] Question: Capacity expectations for the new natural gas pipeline - Management anticipates a target capacity of 1.5 to 2 Bcf of new takeaway capacity after reaching FID [64] Question: CapEx guidance and Enable integration - Management provided insights on the CapEx split, indicating a significant portion is earmarked for midstream projects, including Gulf Run [71] Question: Haynesville capacity and Gulf Run expansion - Management confirmed ongoing negotiations for additional capacity and highlighted the growth potential in the Haynesville region [82][84] Question: Distribution recovery timeline - Management emphasized the importance of balancing distribution growth with capital projects and debt paydown [102]