Energy Transfer Partners Reports Fourth Quarter and Annual Results
Adjusted EBITDA for the three months ended December 31, 2012 totaled
Adjusted EBITDA for the year ended December 31, 2012 totaled
The quarter ended
-
Sunoco Merger. On
October 5, 2012 , ETP completed its merger withSunoco, Inc. ("Sunoco"). Under the terms of the merger agreement, Sunoco shareholders received 54,971,725 ETP Common Units and$2.6 billion of cash. Prior to the contribution of Sunoco to Holdco, as discussed below, Sunoco contributed$2.0 billion of cash and its interests inSunoco Logistics Partners L.P. ("Sunoco Logistics ") to ETP in exchange for 90,706,000 Class F Units representing limited partner interests in ETP ("Class F Units"). The Class F Units are entitled to 35% of the quarterly cash distribution generated by ETP and its subsidiaries other than Holdco, subject to a maximum cash distribution of$3.75 per Class F Unit per year, which is the current distribution level. As a result ETP, now owns the general partner interest, 100% of the incentive distribution rights, and 33,350,637 common units ofSunoco Logistics . Due to this ownership, ETP consolidatedSunoco Logistics into its financial statements as of the merger date. -
Holdco Transaction. Immediately following the closing of
the Sunoco Merger,
Energy Transfer Equity, L.P. ("ETE") contributed its interest inSouthern Union Company ("Southern Union ") toETP Holdco Corporation ("Holdco"), an ETP-controlled entity, in exchange for a 60% equity interest in Holdco. In conjunction with ETE's contribution, ETP contributed its interest in Sunoco to Holdco and retained a 40% equity interest in Holdco. Pursuant to a stockholders agreement between ETE and ETP, ETP controls Holdco. Consequently, ETP consolidated Holdco (includingSunoco and Southern Union ) in its financial statements subsequent to the consummation of the Holdco Transaction. In connection with this transaction, ETE relinquished its rights to$210 million of incentive distributions from ETP that ETE would otherwise be entitled to receive over 12 consecutive quarters. -
Strategic Asset Sale. In
December 2012 ,Southern Union entered into a purchase and sale agreement pursuant to which subsidiaries ofLaclede Gas Company, Inc. have agreed to acquire the assets ofSouthern Union's Missouri Gas Energy andNew England Gas Company divisions. Total consideration is expected to be$1.04 billion , subject to customary closing adjustments, less the assumption of$19 million of debt. For the period fromMarch 26, 2012 toDecember 31, 2012 , the distribution operations have been reclassified to discontinued operations. The assets and liabilities of the disposal group have been reclassified and reported as assets and liabilities held for sale as ofDecember 31, 2012 . -
Lone Star Fractionator. In
December 2012 , we announced thatLone Star's 100,000 Bbls/d NGL fractionation facility atMont Belvieu, Texas is now in service. We will utilize a substantial amount of this fractionation capacity to handle NGL barrels we will deliver from the new processing facility we plan to build inJackson County, Texas , a facility supported by multiple 10-year contracts with producers as part of ourEagle Ford Shale projects. -
Lone Star West Texas Gateway NGL Pipeline. In
December 2012 , we completed construction of the 570-mile, 209,000 Bbls/d Lone Star West Texas Gateway NGL Pipeline ahead of schedule.
An analysis of the Partnership's segment results and other supplementary
data is provided after the financial tables shown below. The Partnership
has scheduled a conference call for
Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial
measures used by industry analysts, investors, lenders, and rating
agencies to assess the financial performance and the operating results
of the Partnership's fundamental business activities and should not be
considered in isolation or as a substitute for net income, income from
operations, cash flows from operating activities, or other GAAP
measures. A table reconciling Adjusted EBITDA and Distributable Cash
Flow with appropriate GAAP financial measures is included in the
summarized financial information included in this release. Beginning
with the quarter ended
The information contained in this press release is available on our website at www.energytransfer.com.
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Dollars in millions) |
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(unaudited) |
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December 31, | |||||||
2012 | 2011 | ||||||
ASSETS |
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CURRENT ASSETS | $ | 5,404 | $ | 1,275 | |||
PROPERTY, PLANT AND EQUIPMENT, net | 25,773 | 12,306 | |||||
NON-CURRENT ASSETS HELD FOR SALE | 985 | — | |||||
ADVANCES TO AND INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 3,502 | 201 | |||||
NON-CURRENT PRICE RISK MANAGEMENT ASSETS | 42 | 26 | |||||
GOODWILL | 5,606 | 1,220 | |||||
INTANGIBLE ASSETS, net | 1,561 | 331 | |||||
OTHER NON-CURRENT ASSETS, net | 357 | 160 | |||||
Total assets | $ | 43,230 | $ | 15,519 | |||
LIABILITIES AND EQUITY |
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CURRENT LIABILITIES | $ | 5,548 | $ | 1,586 | |||
NON-CURRENT LIABILITIES HELD FOR SALE | 142 | — | |||||
LONG-TERM DEBT, less current maturities | 15,442 | 7,388 | |||||
LONG-TERM NOTES PAYABLE - RELATED PARTY | 166 | — | |||||
NON-CURRENT PRICE RISK MANAGEMENT LIABILITIES | 129 | 42 | |||||
DEFERRED INCOME TAXES | 3,476 | 126 | |||||
OTHER NON-CURRENT LIABILITIES | 995 | 27 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
EQUITY: | |||||||
Total partners' capital | 9,201 | 5,721 | |||||
Noncontrolling interest | 8,131 | 629 | |||||
Total equity | 17,332 | 6,350 | |||||
Total liabilities and equity | $ | 43,230 | $ | 15,519 | |||
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Dollars in millions, except per unit data) |
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(unaudited) |
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Three Months Ended |
Years Ended December 31, |
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2012 | 2011 |
2012 (1) |
2011 | ||||||||||||||||||
REVENUES | $ | 10,981 | $ | 1,805 | $ | 15,702 | $ | 6,799 | |||||||||||||
COSTS AND EXPENSES: | |||||||||||||||||||||
Cost of products sold | 9,660 | 1,108 | 12,266 | 4,175 | |||||||||||||||||
Operating expenses | 407 | 197 | 900 | 760 | |||||||||||||||||
Depreciation and amortization | 237 | 110 | 656 | 405 | |||||||||||||||||
Selling, general and administrative | 214 | 54 | 486 | 212 | |||||||||||||||||
Total costs and expenses | 10,518 | 1,469 | 14,308 | 5,552 | |||||||||||||||||
OPERATING INCOME | 463 | 336 | 1,394 | 1,247 | |||||||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||||
Interest expense, net of interest capitalized | (186 | ) | (126 | ) | (665 | ) | (474 | ) | |||||||||||||
Equity in earnings of unconsolidated affiliates | 78 | 12 | 142 | 26 | |||||||||||||||||
Gain on deconsolidation of Propane Business | — | — | 1,057 | — | |||||||||||||||||
Loss on extinguishment of debt | — | — | (115 | ) | — | ||||||||||||||||
Gains (losses) on non-hedged interest rate derivatives | 5 | (13 | ) | (4 | ) | (77 | ) | ||||||||||||||
Other, net | 1 | 5 | 11 | (3 | ) | ||||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 361 | 214 | 1,820 | 719 | |||||||||||||||||
Income tax expense (benefit) | 27 | (2 | ) | 63 | 19 | ||||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 334 | 216 | 1,757 | 700 | |||||||||||||||||
Income (loss) from discontinued operations | 27 | 1 | (109 | ) | (3 | ) | |||||||||||||||
NET INCOME | 361 | 217 | 1,648 | 697 | |||||||||||||||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 54 | 11 | 79 | 28 | |||||||||||||||||
NET INCOME ATTRIBUTABLE TO PARTNERS | 307 | 206 | 1,569 | 669 | |||||||||||||||||
GENERAL PARTNER’S INTEREST IN NET INCOME | 119 | 115 | 461 | 433 | |||||||||||||||||
LIMITED PARTNERS’ INTEREST IN NET INCOME | $ | 188 | $ | 91 | $ | 1,108 | $ | 236 | |||||||||||||
INCOME FROM CONTINUING OPERATIONS PER LIMITED PARTNER UNIT: | |||||||||||||||||||||
Basic | $ | 0.56 | $ | 0.41 | $ | 4.93 | $ | 1.12 | |||||||||||||
Diluted | $ | 0.56 | $ | 0.41 | $ | 4.91 | $ | 1.12 | |||||||||||||
NET INCOME PER LIMITED PARTNER UNIT: | |||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.41 | $ | 4.43 | $ | 1.10 | |||||||||||||
Diluted | $ | 0.62 | $ | 0.41 | $ | 4.42 | $ | 1.10 |
(1) In accordance with generally accepted accounting
principles, amounts previously reported for interim periods in 2012 have
been revised to reflect the retrospective consolidation of
SUPPLEMENTAL INFORMATION |
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(Dollars in millions) |
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(unaudited) |
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Three Months Ended |
Years Ended December 31, |
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2012 | 2011 | 2012 (a) | 2011 | ||||||||||||||||||
Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow (b): | (Revised - see (c) below) | (Revised - see (c) below) | (Revised - see (c) below) | ||||||||||||||||||
Net income | $ | 361 | $ | 217 | $ | 1,648 | $ | 697 | |||||||||||||
Interest expense, net of interest capitalized | 186 | 126 | 665 | 474 | |||||||||||||||||
Income tax expense (benefit) | 27 | (2 | ) | 63 | 19 | ||||||||||||||||
Depreciation and amortization | 237 | 110 | 656 | 405 | |||||||||||||||||
Gain on deconsolidation of Propane Business | — | — | (1,057 | ) | — | ||||||||||||||||
Loss on extinguishment of debt | — | — | 115 | — | |||||||||||||||||
Non-cash compensation expense | 11 | 7 | 42 | 38 | |||||||||||||||||
(Gains) losses on non-hedged interest rate derivatives | (5 | ) | 13 | 4 | 77 | ||||||||||||||||
Unrealized (gains) losses on commodity risk management activities | (51 | ) | 13 | 9 | 11 | ||||||||||||||||
LIFO valuation reserve | 75 | — | 75 | — | |||||||||||||||||
Write-down of assets included in loss from discontinued operations | (13 | ) | — | 132 | — | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | (78 | ) | (12 | ) | (142 | ) | (26 | ) | |||||||||||||
Adjusted EBITDA related to unconsolidated affiliates | 178 | 18 | 480 | 56 | |||||||||||||||||
Other, net | 20 | 3 | 54 | 30 | |||||||||||||||||
Adjusted EBITDA | 948 | 493 | 2,744 | 1,781 | |||||||||||||||||
Adjusted EBITDA related to unconsolidated affiliates | (178 | ) | (18 | ) | (480 | ) | (56 | ) | |||||||||||||
Distributions from unconsolidated affiliates | 72 | 19 | 262 | 51 | |||||||||||||||||
Interest expense, net of interest capitalized | (186 | ) | (126 | ) | (665 | ) | (474 | ) | |||||||||||||
Income tax (expense) benefit | (27 | ) | 2 | (63 | ) | (19 | ) | ||||||||||||||
Maintenance capital expenditures | (143 | ) | (54 | ) | (313 | ) | (134 | ) | |||||||||||||
Other, net | 2 | 3 | 3 | 4 | |||||||||||||||||
Distributable Cash Flow | $ | 488 | $ | 319 | $ | 1,488 | $ | 1,153 | |||||||||||||
Distributions to be paid to the partners of ETP (d): | |||||||||||||||||||||
Limited Partners: | |||||||||||||||||||||
Common units held by ETE | $ | 45 | $ | 45 | $ | 180 | $ | 180 | |||||||||||||
Common units held by public | 224 | 157 | 783 | 582 | |||||||||||||||||
General Partner interest held by ETE | 5 | 5 | 20 | 20 | |||||||||||||||||
Incentive Distribution Rights ("IDR") held by ETE | 148 | 112 | 529 | 422 | |||||||||||||||||
422 | 319 | 1,512 | 1,204 | ||||||||||||||||||
IDR relinquishment related to Citrus Dropdown and Sunoco Merger | (31 | ) | — | (90 | ) | — | |||||||||||||||
Total distributions to be paid to the partners of ETP | 391 | 319 | 1,422 |
|
1,204 | ||||||||||||||||
Distributions to be paid to noncontrolling interests: | |||||||||||||||||||||
Distributions to ETE in respect of Holdco (e) | 75 | — | 75 | — | |||||||||||||||||
Distributions to Regency in respect of Lone Star (f) | 15 | 13 | 60 | 35 | |||||||||||||||||
Distributions to Sunoco Logistics unitholders (common units held by public) (g) | 38 | — | 38 | — | |||||||||||||||||
Total distributions to be paid to noncontrolling interests | 128 | 13 | 173 | 35 | |||||||||||||||||
Total distributions to be paid to the partners of ETP and noncontrolling interests | $ | 519 | $ | 332 | $ | 1,595 | $ | 1,239 |
(a) In accordance with generally accepted accounting principles, amounts
previously reported for interim periods in 2012 have been revised to
reflect the retrospective consolidation of
(b) The Partnership has disclosed in this press release Adjusted EBITDA and Distributable Cash Flow, which are non-GAAP financial measures. Management believes Adjusted EBITDA and Distributable Cash Flow provide useful information to investors as measures of comparison with peer companies, including companies that may have different financing and capital structures. The presentation of Adjusted EBITDA and Distributable Cash Flow also allows investors to view our performance in a manner similar to the methods used by management and provides additional insight into our operating results.
There are material limitations to using measures such as Adjusted EBITDA and Distributable Cash Flow, including the difficulty associated with using either as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company's net income or loss or cash flows. In addition, our calculations of Adjusted EBITDA and Distributable Cash Flow may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP, such as gross margin, operating income, net income, and cash flow from operating activities.
Definition of Adjusted EBITDA
The Partnership defines Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, loss on extinguishment of debt, gain on deconsolidation of our Propane Business and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities include unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Adjusted EBITDA reflects amounts for less than wholly owned subsidiaries based on 100% of the subsidiaries' results of operations and for unconsolidated affiliates based on the Partnership's proportionate ownership.
Adjusted EBITDA is used by management to determine our operating performance and, along with other financial and volumetric data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted businesses for acquisition and as a measurement component of incentive compensation.
Definition of Distributable Cash Flow
The Partnership defines Distributable Cash Flow as net income, adjusted for certain non-cash items, less maintenance capital expenditures. Non-cash items include depreciation and amortization, non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, loss on extinguishment of debt and gain on deconsolidation of our Propane Business. Unrealized gains and losses on commodity risk management activities includes unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Distributable Cash Flow reflects earnings from unconsolidated affiliates on a cash basis.
Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash, and Distributable Cash Flow is calculated to evaluate our ability to fund distributions through cash generated by our operations.
(c) The Partnership has presented Adjusted EBITDA and Distributable Cash
Flow in previous communications; however, the Partnership changed its
definition for these non-GAAP measures in the quarter ended
(d) For the three months ended
For the year ended
(e) For the three months and year ended
(f) Cash distributions to Regency in respect of
(g) For the three months and year ended
Summary Analysis of Quarterly Results by Segment | ||||||||||
(Tabular dollar amounts are in millions) |
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Three Months Ended |
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2012 | 2011 | |||||||||
Segment Adjusted EBITDA | ||||||||||
Intrastate transportation and storage | $ | 131 | $ | 153 | ||||||
Interstate transportation and storage | 306 | 107 | ||||||||
Midstream | 103 | 115 | ||||||||
NGL transportation and services | 54 | 48 | ||||||||
Investment in Sunoco Logistics | 219 | — | ||||||||
Retail Marketing | 109 | — | ||||||||
All other | 29 | 72 | ||||||||
Elimination | (3 | ) | (2 | ) | ||||||
$ | 948 | $ | 493 | |||||||
Subsequent to the Sunoco Merger and Holdco Transactions in
-
Interstate Transportation and Storage segment now includes
Southern Union's transportation and storage operations; -
Midstream segment now includes
Southern Union's gathering and processing operations; -
Investment in
Sunoco Logistics segment reflects the consolidated operations ofSunoco Logistics ; - Retail Marketing segment reflects the consolidated operations of Sunoco's retail marketing business; and,
- All Other now includes the investments and operations identified under the segment table below.
Our segment results were presented based on the measure of Segment Adjusted EBITDA. We previously reported segment operating income as a measure of segment performance. We have revised certain reports provided to our chief operating decision maker to assess the performance of our business to reflect Segment Adjusted EBITDA. Segment Adjusted EBITDA reflected amounts for less than wholly owned subsidiaries and unconsolidated affiliates based on our proportionate ownership. We have recast the presentation of our segment results for the prior years to be consistent with the current year presentation. The tables below identify the components of Segment Adjusted EBITDA, which was calculated as follows:
- Gross margin, operating expenses, and selling, general and administrative. These amounts represent the amounts included in our consolidated financial statements that are attributable to each segment.
- Unrealized gains or losses on commodity risk management activities. These are the unrealized amounts that are included in gross margin. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are added back and the unrealized gains are subtracted to calculate the segment measure.
- Non-cash compensation expense. These amounts represent the total non-cash compensation recorded in operating expenses and selling, general and administrative. These amounts are not included in Segment Adjusted EBITDA and therefore are added back to calculate the segment measure.
- Adjusted EBITDA related to unconsolidated affiliates. These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated affiliates. Amounts reflected are calculated consistently with our definition of Adjusted EBITDA above.
Intrastate Transportation and Storage
Three Months Ended |
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2012 | 2011 | |||||||||
Natural gas MMBtu/d — transported | 9,426,807 | 11,107,320 | ||||||||
Revenues | $ | 659 | $ | 579 | ||||||
Cost of products sold | 445 | 378 | ||||||||
Gross margin | 214 | 201 | ||||||||
Unrealized (gains) losses on commodity risk management activities | (35 | ) | 11 | |||||||
Operating expenses, excluding non-cash compensation expense | (42 | ) | (47 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (9 | ) | (13 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 3 | 1 | ||||||||
Segment Adjusted EBITDA | $ | 131 | $ | 153 | ||||||
Distributions from unconsolidated affiliates | $ | — | $ | 1 | ||||||
Maintenance capital expenditures | 8 | 15 | ||||||||
Segment Adjusted EBITDA Segment Adjusted EBITDA for the intrastate transportation and storage segment decreased primarily due to lower realized margin.
The components of our intrastate transportation and storage segment gross margin were as follows:
Three Months Ended |
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2012 | 2011 | |||||||
Transportation fees | $ | 129 | $ | 151 | ||||
Natural gas sales and other | 27 | — | ||||||
Retained fuel revenues | 24 | 25 | ||||||
Storage margin, including fees | 34 | 24 | ||||||
Total gross margin (1) | $ | 214 | $ | 201 |
(1) Gross margin included unrealized gains and losses on commodity risk management activities, which were excluded from the Segment Adjusted EBITDA calculation, as reflected above.
The decrease in transportation fees was attributable to a decrease in transported volumes as a result of less favorable market conditions and the cessation of certain long-term transportation contracts. The increase in our storage margin was principally driven by gains on settled derivatives.
Interstate Transportation and Storage
Three Months Ended |
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2012 | 2011 | |||||||||
Natural gas transported (MMBtu/d) | ||||||||||
ETP Legacy Assets | 2,868,070 | 3,071,083 | ||||||||
Southern Union transportation and storage | 4,094,576 | — | ||||||||
Natural gas sold (MMBtu/d) | 17,020 | 21,057 | ||||||||
Revenues | $ | 334 | $ | 117 | ||||||
Operating expenses, excluding non-cash compensation, amortization and accretion expenses | (74 | ) | (20 | ) | ||||||
Selling, general and administrative, excluding non-cash compensation, amortization and accretion expenses | (33 | ) | (7 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 79 | 17 | ||||||||
Segment Adjusted EBITDA | $ | 306 | $ | 107 | ||||||
Distributions from unconsolidated affiliates | $ | 42 | $ | 18 | ||||||
Maintenance capital expenditures | 45 | 15 | ||||||||
Segment Adjusted EBITDA.
Adjusted EBITDA Related to Unconsolidated Affiliates. Adjusted
EBITDA related to unconsolidated affiliates increased primarily due to
our acquisition of a 50% interest in Citrus which contributed
Midstream
Three Months Ended |
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2012 | 2011 | |||||||||
Gathered Volumes (MMBtu/d): | ||||||||||
ETP Legacy Assets | 2,473,878 | 2,259,676 | ||||||||
Southern Union gathering and processing | 533,548 | — | ||||||||
NGLs produced (Bbls/d): | ||||||||||
ETP Legacy Assets | 87,389 | 61,756 | ||||||||
Southern Union gathering and processing | 42,346 | — | ||||||||
Equity NGLs produced (Bbls/d): | ||||||||||
ETP Legacy Assets | 13,538 | 17,107 | ||||||||
Southern Union gathering and processing | 6,724 | — | ||||||||
Revenues | $ | 930 | $ | 666 | ||||||
Cost of products sold | 758 | 529 | ||||||||
Gross margin | 172 | 137 | ||||||||
Unrealized (gains) losses on commodity risk management activities | (1 | ) | (1 | ) | ||||||
Operating expenses, excluding non-cash compensation expense | (46 | ) | (24 | ) | ||||||
Selling, general and administrative, excluding non-cash compensation expense | (16 | ) | (5 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | (6 | ) | — | |||||||
Adjusted EBITDA attributable to discontinued operations | — | 8 | ||||||||
Segment Adjusted EBITDA | $ | 103 | $ | 115 | ||||||
Maintenance capital expenditures | $ | 19 | $ | 14 | ||||||
Segment Adjusted EBITDA. Segment Adjusted EBITDA for the
midstream segment decreased due to increases in operating expenses and
selling, general and administrative expenses primarily due to the
consolidation of
Three Months Ended |
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2012 | 2011 | |||||||||
Gathering and processing fee-based revenues | $ | 101 | $ | 70 | ||||||
Non fee-based contracts and processing | 73 | 70 | ||||||||
Other | (2 | ) | (3 | ) | ||||||
Total gross margin | $ | 172 | $ | 137 | ||||||
Our fee-based revenues increased due to additional volumes from
production in the
While overall our midstream gross margin is up due to increases in
volumes associated with the system primarily from our gathering and
processing fee-based revenues and the consolidation of
NGL Transportation and Services
Three Months Ended |
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2012 | 2011 | |||||||||
NGL transportation volumes (Bbls/d) | 187,821 | 131,297 | ||||||||
NGL fractionation volumes (Bbls/d) | 18,424 | 19,073 | ||||||||
Revenues | $ | 154 | $ | 152 | ||||||
Cost of products sold | 76 | 85 | ||||||||
Gross margin | 78 | 67 | ||||||||
Operating expenses, excluding non-cash compensation expense | (17 | ) | (15 | ) | ||||||
Selling, general and administrative, excluding non-cash compensation expense | (5 | ) | (4 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | (2 | ) | — | |||||||
Segment Adjusted EBITDA | $ | 54 | $ | 48 | ||||||
Maintenance capital expenditures | $ | 5 | $ | 3 | ||||||
Volumes. The volumes reflected above represent average daily
volumes for the period. NGL transportation volumes increased as compared
to the same period in the prior year primarily due to an increase in
volumes transported on our wholly-owned and joint venture NGL pipelines
originating from our
The components of our NGL transportation and services segment gross margin were as follows:
Three Months Ended |
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2012 | 2011 | |||||||
Storage revenues | $ | 32 | $ | 35 | ||||
Transportation revenues | 28 | 12 | ||||||
Processing and fractionation revenues | 18 | 20 | ||||||
Total gross margin | $ | 78 | $ | 67 | ||||
Segment Adjusted EBITDA increased primarily due to the Freedom, Liberty, Gateway, and Justice pipelines being placed in service in 2012.
Investment in
Three Months Ended |
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2012 | 2011 | ||||||||
Revenue | $ | 3,194 | $ | — | |||||
Cost of products sold | 2,843 | — | |||||||
Gross margin | 351 | — | |||||||
Unrealized gains on commodity risk management activities | (15 | ) | — | ||||||
Operating expenses, excluding non-cash compensation expense | (95 | ) | — | ||||||
Selling, general and administrative, excluding non-cash compensation expense | (32 | ) |
— |
||||||
Adjusted EBITDA related to unconsolidated affiliates |
|
10 |
— |
||||||
Segment Adjusted EBITDA | $ | 219 | $ | — | |||||
Distributions from unconsolidated affiliates | $ | 6 | $ | — | |||||
Maintenance capital expenditures | 21 | — | |||||||
We obtained control of
Retail Marketing
Three Months Ended |
|||||||||
2012 | 2011 | ||||||||
Total retail gasoline outlets, end of period | 4,988 | — | |||||||
Total company-operated outlets, end of period | 437 | — | |||||||
Gasoline and diesel throughput per company-operated site (gallons/month) |
198,000 |
— | |||||||
Revenue | $ | 5,926 | $ | — | |||||
Cost of products sold | 5,757 | — | |||||||
Gross margin | 169 | — | |||||||
Operating expenses, excluding non-cash compensation expense | (119 | ) | — | ||||||
Selling, general and administrative, excluding non-cash compensation expense | (17 | ) | — | ||||||
LIFO valuation reserve (included in gross margin) | 75 | — | |||||||
Adjusted EBITDA related to unconsolidated affiliates | 1 | — | |||||||
Segment Adjusted EBITDA | $ | 109 | $ | — | |||||
Maintenance capital expenditures | $ | 20 | $ | — | |||||
We acquired our retail marketing segment on
All Other
Three Months Ended |
||||||||||
2012 | 2011 | |||||||||
Revenue | $ | 88 | $ | 475 | ||||||
Cost of products sold | 80 | 296 | ||||||||
Gross margin | 8 | 179 | ||||||||
Unrealized losses on commodity risk management activities | — | 2 | ||||||||
Operating expenses, excluding non-cash compensation expense | (15 | ) | (94 | ) | ||||||
Selling, general and administrative, excluding non-cash compensation expense | (90 | ) | (15 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 93 | — | ||||||||
Adjusted EBITDA related to discontinued operations | 33 | — | ||||||||
Segment Adjusted EBITDA | $ | 29 | $ | 72 | ||||||
Distributions from unconsolidated affiliates | $ | 24 | $ | — | ||||||
Maintenance capital expenditures | 25 | 6 | ||||||||
Amounts reflected in our other segment primarily include:
-
Our retail propane and other retail propane related operations prior
to our contribution of those operations to
AmeriGas Partners, L.P. ("AmeriGas ") inJanuary 2012 . Our investment inAmeriGas was reflected in the other segment subsequent to that transaction; -
Southern Union's local distribution operations beginningMarch 26, 2012 ; - Our natural gas compression operations; and,
-
Sunoco's 33% non-operating interest in Philadelphia Energy Solutions
("PES"), a joint venture with The
Carlyle Group, L.P. ("TheCarlyle Group "), which owns a refinery inPhiladelphia .
Source:
Investor Relations:
Energy Transfer
Brent Ratliff,
214-981-0700
or
Media Relations:
Granado
Communications Group
Vicki Granado, 214-599-8785
Cell:
214-498-9272