Energy Transfer(ET)2024-02-15 01:17Financial Data and Key Metrics Changes - For Q4 2023, adjusted EBITDA was 3.4 billion in Q4 2022, driven by strong operational performance across segments [24] - DCF attributable to partners was 1.9 billion in Q4 2022, resulting in excess cash flow after distributions of approximately 13.7 billion, a 5% increase over 2022, marking a partnership record [42] Business Line Data and Key Metrics Changes - In the crude oil segment, adjusted EBITDA increased to 571 million in Q4 2022, with transportation volumes rising 39% to 5.9 million barrels per day [17] - The NGL and refined products segment saw adjusted EBITDA rise to 928 million in Q4 2022, with NGL transportation volumes increasing 10% to 2.2 million barrels per day [44] - The intrastate segment's adjusted EBITDA decreased to 433 million in Q4 2022, impacted by lower operating expenses despite new contracts [27] Market Data and Key Metrics Changes - The company maintained approximately 20% market share of worldwide NGL exports, loading over 61 million barrels of ethane out of Nederland in 2023 [26] - International demand for natural gas liquids has increased, contributing to strong export performance [26] Company Strategy and Development Direction - The company plans to invest between 2.6 billion in growth capital expenditures for 2024, focusing on NGL and refined products, midstream segments, and expansion projects [32] - The integration of Crestwood assets is expected to generate approximately 65 million anticipated in 2024 [45] - The company is pursuing additional commercial opportunities and optimizing existing assets to enhance profitability [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain strong cash flows and operational stability despite commodity price volatility [33] - The company anticipates continued growth in crude oil and natural gas demand, positioning itself to meet this demand through strategic optimization and expansion projects [33] Other Important Information - The company has a total available liquidity of approximately $3.56 billion as of December 31, 2023, and has been proactive in refinancing existing debt [25] - The Biden administration's moratorium on LNG export approvals introduces uncertainty for the Lake Charles LNG project, but management remains optimistic about future approvals [28] Q&A Session Summary Question: What are the drivers for the guidance considering commodity price volatility? - Management indicated a conservative outlook on producer activity, particularly in the Haynesville, while expecting growth in the Permian Basin despite lower gas prices [51][52] Question: How is the company viewing preferred stock repayment versus other uses of excess cash? - Management confirmed a focus on repaying preferred equity when economically sensible, while also considering growth opportunities and distribution growth [40] Question: Can you provide updates on the Warrior project and its potential? - Management remains optimistic about the Warrior project, noting that it provides access to major markets and is well-positioned for future demand [41] Question: What are the expectations for NGL exports going into 2024? - Management expects strong margins for NGL exports, driven by high international demand and the company's strategic positioning [75] Question: What synergies have been captured from the Crestwood acquisition? - Management is excited about the initial synergies from the Crestwood acquisition and anticipates further benefits as integration progresses [76]