Energy Transfer Partners Reports First Quarter Results
Adjusted EBITDA for
The Partnership’s key accomplishments to date in 2013 include the following:
- During the first quarter of 2013, Phase I of the Jackson Plant was completed.
-
On
April 30, 2013 , the Partnership acquired fromEnergy Transfer Equity, L.P. (“ETE”) its interest in Holdco for approximately 49.5 million newly issued ETP common units and$1.4 billion in cash, less$68 million of estimated closing adjustments. -
On
April 30, 2013 ,Southern Union Company (“Southern Union”) contributed its interest inSouthern Union Gathering Company, LLC toRegency Energy Partners LP (“Regency”), a subsidiary of ETE, in exchange for cash and Regency common units. -
On
May 6, 2013 , the Partnership's subsidiaries,Sunoco Logistics andLone Star NGL LLC , announced that long-term, fee-based agreements have been executed with an anchor tenant to move forward with a liquefied petroleum gas (LPG) export/import project.
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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March 31, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS |
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CURRENT ASSETS | $ | 6,359 | $ | 5,404 | ||||
PROPERTY, PLANT AND EQUIPMENT, net | 26,007 | 25,773 | ||||||
NON-CURRENT ASSETS HELD FOR SALE | 992 | 985 | ||||||
ADVANCES TO AND INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 3,489 | 3,502 | ||||||
NON-CURRENT PRICE RISK MANAGEMENT ASSETS | 35 | 42 | ||||||
GOODWILL | 5,586 | 5,606 | ||||||
INTANGIBLE ASSETS, net | 1,544 | 1,561 | ||||||
OTHER NON-CURRENT ASSETS, net | 356 | 357 | ||||||
Total assets | $ | 44,368 | $ | 43,230 | ||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES | $ | 5,783 | $ | 5,548 | ||||
NON-CURRENT LIABILITIES HELD FOR SALE | 142 | 142 | ||||||
LONG-TERM DEBT, less current maturities | 16,135 | 15,442 | ||||||
LONG-TERM NOTES PAYABLE — RELATED PARTY | 166 | 166 | ||||||
NON-CURRENT PRICE RISK MANAGEMENT LIABILITIES | 124 | 129 | ||||||
DEFERRED INCOME TAXES | 3,541 | 3,476 | ||||||
OTHER NON-CURRENT LIABILITIES | 1,008 | 995 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
EQUITY: | ||||||||
Total partners’ capital | 9,340 | 9,201 | ||||||
Noncontrolling interest | 8,129 | 8,131 | ||||||
Total equity | 17,469 | 17,332 | ||||||
Total liabilities and equity | $ | 44,368 | $ | 43,230 |
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 March 31, | ||||||||||
2013 |
2012(1) |
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REVENUES | $ | 10,854 | $ | 1,323 | ||||||
COSTS AND EXPENSES: | ||||||||||
Cost of products sold | 9,594 | 781 | ||||||||
Operating expenses | 304 | 130 | ||||||||
Depreciation and amortization | 260 | 99 | ||||||||
Selling, general and administrative | 162 | 104 | ||||||||
Total costs and expenses | 10,320 | 1,114 | ||||||||
OPERATING INCOME | 534 | 209 | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||
Interest expense, net of interest capitalized | (211 | ) | (141 | ) | ||||||
Equity in earnings of unconsolidated affiliates | 72 | 55 | ||||||||
Gain on deconsolidation of Propane Business | — | 1,056 | ||||||||
Loss on extinguishment of debt | — | (115 | ) | |||||||
Gains on interest rate derivatives | 7 | 28 | ||||||||
Other, net | 3 | (1 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 405 | 1,091 | ||||||||
Income tax expense from continuing operations | 3 | 2 | ||||||||
INCOME FROM CONTINUING OPERATIONS | 402 | 1,089 | ||||||||
Income (loss) from discontinued operations | 22 | (1 | ) | |||||||
NET INCOME | 424 | 1,088 | ||||||||
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | 102 | (27 | ) | |||||||
NET INCOME ATTRIBUTABLE TO PARTNERS | 322 | 1,115 | ||||||||
GENERAL PARTNER’S INTEREST IN NET INCOME | 128 | 117 | ||||||||
LIMITED PARTNERS’ INTEREST IN NET INCOME | $ | 194 | $ | 998 | ||||||
INCOME FROM CONTINUING OPERATIONS PER LIMITED PARTNER UNIT: | ||||||||||
Basic | $ | 0.60 | $ | 4.37 | ||||||
Diluted | $ | 0.60 | $ | 4.36 | ||||||
NET INCOME PER LIMITED PARTNER UNIT: | ||||||||||
Basic | $ | 0.63 | $ | 4.36 | ||||||
Diluted | $ | 0.63 | $ | 4.35 | ||||||
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING: | ||||||||||
Basic | 300,831,573 | 226,549,263 | ||||||||
Diluted | 301,832,910 | 227,406,484 |
(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 Southern Union into ETP as a result of the Holdco Transaction as the transfer of Southern Union into Holdco met the definition of a transaction between entities under common control. Thus, Southern Union is retroactively consolidated beginning March 26, 2012, the date that ETE completed its merger with Southern Union. |
SUPPLEMENTAL INFORMATION |
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(Dollars in millions) |
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(unaudited) |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 (b) (c) | |||||||||
Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow (a): | ||||||||||
Net income | $ | 424 | $ | 1,088 | ||||||
Interest expense, net of interest capitalized | 211 | 141 | ||||||||
Gain on deconsolidation of Propane Business | — | (1,056 | ) | |||||||
Income tax expense | 3 | 2 | ||||||||
Depreciation and amortization | 260 | 99 | ||||||||
Non-cash compensation expense | 14 | 11 | ||||||||
Gains on interest rate derivatives | (7 | ) | (28 | ) | ||||||
Unrealized (gains) losses on commodity risk management activities | (19 | ) | 86 | |||||||
LIFO valuation adjustment | (38 | ) | — | |||||||
Loss on extinguishment of debt | — | 115 | ||||||||
Adjusted EBITDA related to unconsolidated affiliates | 165 | 99 | ||||||||
Equity in earnings of unconsolidated affiliates | (72 | ) | (55 | ) | ||||||
Other, net | 15 | (8 | ) | |||||||
Adjusted EBITDA | 956 | 494 | ||||||||
Adjusted EBITDA related to unconsolidated affiliates | (165 | ) | (99 | ) | ||||||
Distributions from unconsolidated affiliates | 95 | 42 | ||||||||
Interest expense, net of interest capitalized | (211 | ) | (141 | ) | ||||||
Income tax expense | (3 | ) | (2 | ) | ||||||
Maintenance capital expenditures | (51 | ) | (24 | ) | ||||||
Other, net | 1 | 1 | ||||||||
Distributable Cash Flow | $ | 622 | $ | 271 | ||||||
Distributions to be paid to the partners of ETP (d): | ||||||||||
Limited Partners: | ||||||||||
Common units held by ETE | $ | 45 | $ | 45 | ||||||
Common units held by public | 241 | 160 | ||||||||
General Partner interest held by ETE | 5 | 5 | ||||||||
Incentive Distribution Rights (“IDR”) held by ETE | 156 | 114 | ||||||||
447 | 324 | |||||||||
IDR relinquishment related to previous acquisitions | (31 | ) | (14 | ) | ||||||
Total distributions to be paid to the partners of ETP | 416 | 310 | ||||||||
Distributions to be paid to noncontrolling interests: | ||||||||||
Distributions to ETE in respect of Holdco (e) | 50 | — | ||||||||
Distributions to Regency in respect of Lone Star (f) | 23 | 11 | ||||||||
Distributions to Sunoco Logistics unitholders (common units held by public) (g) | 40 | — | ||||||||
Total distributions to be paid to noncontrolling interests | 113 | 11 | ||||||||
Total distributions to be paid to the partners of ETP and noncontrolling interests | $ | 529 | $ | 321 |
(a) | 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. | ||
(b) | In accordance with generally accepted accounting principles, amounts previously reported for interim periods in 2012 have been revised to reflect the retrospective consolidation of Southern Union into ETP as a result of the Holdco Transaction as the transfer of Southern Union into Holdco met the definition of a transaction between entities under common control. Thus, Southern Union is retroactively consolidated beginning March 26, 2012, the date that ETE completed its merger with Southern Union. | |
(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 December 31, 2012 to reflect less than wholly-owned subsidiaries on a fully consolidated basis. Previously, the Partnership presented less than wholly-owned subsidiaries on a proportionate basis. The Partnership believes that with this change, Adjusted EBITDA and Distributable Cash Flow more accurately reflect the Partnership’s operating performance and therefore are more useful measures. This change has been applied retroactively to all periods presented. See “Non-GAAP Measures” available on the Partnership’s website at www.energytransfer.com for the reconciliation of net income to Adjusted EBITDA for recent prior periods reflecting the changes described above. |
|
(d) | For the three months ended March 31, 2013, cash distributions to be paid to the partners of ETP consist of cash distributions payable on May 15, 2013 to holders of record on May 6, 2013 in respect of the quarter ended March 31, 2013. For the three months ended March 31, 2012, cash distributions to be paid to the partners of ETP consist of cash distributions paid on May 15, 2012 in respect of the quarter ended March 31, 2012. | |
For the three months ended March 31, 2013, cash distributions to be paid to the partners of ETP exclude distributions to be paid on 49.5 million ETP common units issued to ETE as a portion of the consideration for ETP's acquisition of ETE's interest in Holdco on April 30, 2013. These newly issued ETP common units will receive cash distributions on May 15, 2013; however, such distributions were reduced from the total cash portion of the consideration paid to ETE in connection with the April 30, 2013 Holdco transaction. | ||
(e) | For the three months ended March 31, 2013, cash distributions to ETE in respect of Holdco consist of cash distributions paid in April 2013 in respect of the quarter ended March 31, 2013. | |
(f) | Cash distributions to Regency in respect of Lone Star consist of cash distributions paid on a quarterly basis. The amounts reflected above are in respect of the periods then ended, including payments made in arrears subsequent to period end. | |
(g) | For the three months ended March 31, 2013, cash distributions to be paid to the partners of Sunoco Logistics consist of cash distributions payable on May 15, 2013 to holders of record on May 9, 2013 in respect of the quarter ended March 31, 2013. | |
SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT
(Dollars
in millions)
(unaudited)
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. 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.
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Segment Adjusted EBITDA: | |||||||
Intrastate transportation and storage | $ | 132 | $ | 192 | |||
Interstate transportation and storage | 297 | 80 | |||||
Midstream | 79 | 89 | |||||
NGL transportation and services | 80 | 50 | |||||
Investment in Sunoco Logistics | 236 | — | |||||
Retail marketing | 37 | — | |||||
All other | 95 | 83 | |||||
$ | 956 | $ | 494 |
Intrastate Transportation and Storage |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
Natural gas transported (MMBtu/d) | 9,733,480 | 10,114,354 | ||||||||
Revenues | $ | 690 | $ | 482 | ||||||
Cost of products sold | 496 | 314 | ||||||||
Gross margin | 194 | 168 | ||||||||
Unrealized (gains) losses on commodity risk management activities | (12 | ) | 82 | |||||||
Operating expenses, excluding non-cash compensation expense | (39 | ) | (39 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (11 | ) | (19 | ) | ||||||
Segment Adjusted EBITDA | $ | 132 | $ | 192 | ||||||
Distributions from unconsolidated affiliates | $ | — | $ | 1 | ||||||
Segment Adjusted EBITDA for the intrastate transportation and storage segment decreased primarily due to a lower realized margin on natural gas storage activities. Additionally, a decrease in transportation fees was offset by increases in natural gas sales and other activities, improved retention margins and lower selling, general and administrative expenses.
Interstate Transportation and Storage |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
Natural gas transported (MMBtu/d): | ||||||||||
ETP legacy assets | 2,613,154 | 3,153,073 | ||||||||
Southern Union transportation and storage | 4,420,650 | 3,764,599 | ||||||||
Natural gas sold (MMBtu/d) – ETP legacy assets | 16,768 | 20,517 | ||||||||
Revenues | $ | 324 | $ | 142 | ||||||
Operating expenses, excluding non-cash compensation, amortization and accretion expenses | (72 | ) | (32 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses | (35 | ) | (53 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 80 | 23 | ||||||||
Segment Adjusted EBITDA | $ | 297 | $ | 80 | ||||||
Distributions from unconsolidated affiliates | $ | 41 | $ | 18 | ||||||
Segment Adjusted EBITDA for the interstate transportation and storage
segment increased primarily due to the consolidation of Southern Union’s
transportation and storage operations beginning
Midstream |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
Gathered volumes (MMBtu/d): | ||||||||||
ETP legacy assets | 2,587,787 | 2,239,220 | ||||||||
Southern Union gathering and processing | 480,339 | 404,422 | ||||||||
NGLs produced (Bbls/d): | ||||||||||
ETP legacy assets | 96,775 | 65,627 | ||||||||
Southern Union gathering and processing | 39,681 | 38,723 | ||||||||
Equity NGLs produced (Bbls/d): | ||||||||||
ETP legacy assets | 9,499 | 17,630 | ||||||||
Southern Union gathering and processing | 7,206 | 8,744 | ||||||||
Revenues | $ | 951 | $ | 563 | ||||||
Cost of products sold | 794 | 436 | ||||||||
Gross margin | 157 | 127 | ||||||||
Unrealized losses on commodity risk management activities | — | 2 | ||||||||
Operating expenses, excluding non-cash compensation expense | (49 | ) | (26 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (29 | ) | (19 | ) | ||||||
Adjusted EBITDA attributable to discontinued operations | — | 5 | ||||||||
Segment Adjusted EBITDA | $ | 79 | $ | 89 | ||||||
Segment Adjusted EBITDA for the midstream segment reflected increases in gross margin as follows: |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
Gathering and processing fee-based revenues | $ | 97 | $ | 70 | ||||||
Non fee-based contracts and processing | 67 | 64 | ||||||||
Other | (7 | ) | (7 | ) | ||||||
Total gross margin | $ | 157 | $ | 127 | ||||||
Increased production in the
Segment Adjusted EBITDA also reflected higher operating expenses and
selling, general and administrative expenses primarily due to the
consolidation of Southern Union’s gathering and processing operations
beginning
NGL Transportation and Services |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
NGL transportation volumes (Bbls/d) | 274,030 | 150,881 | ||||||||
NGL fractionation volumes (Bbls/d) | 86,703 | 20,006 | ||||||||
Revenues | $ | 365 | $ | 167 | ||||||
Cost of products sold | 257 | 98 | ||||||||
Gross margin | 108 | 69 | ||||||||
Operating expenses, excluding non-cash compensation expense | (19 | ) | (14 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (10 | ) | (5 | ) | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 1 | — | ||||||||
Segment Adjusted EBITDA | $ | 80 | $ | 50 | ||||||
Distributions from unconsolidated affiliates | $ | 1 | $ | — | ||||||
Segment Adjusted EBITDA for the NGL transportation and services segment reflected higher gross margin, as discussed below, offset by higher operating expenses due to increased ad valorem taxes and other expenses related to the start-up of Lone Star’s fractionator and higher selling, general and administrative expenses due to increased employee-related costs and allocated overhead expenses resulting from overall asset growth on the system.
Segment Adjusted EBITDA for the NGL transportation and services segment reflected increases in gross margin as follows:
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Storage margin | $ | 32 | $ | 32 | |||
Transportation margin | 41 | 13 | |||||
Processing and fractionation margin | 34 | 24 | |||||
Other margin | 1 | — | |||||
Total gross margin | $ | 108 | $ | 69 | |||
Transportation margin increased due to an increase in volumes
transported out of
Processing and fractionation margin increased due to the startup of Lone
Star’s fractionator at
Investment in Sunoco Logistics |
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Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Revenue | $ | 3,512 | $ | — | |||||
Cost of products sold | 3,226 | — | |||||||
Gross margin | 286 | — | |||||||
Unrealized gains on commodity risk management activities | (3 | ) | — | ||||||
Operating expenses, excluding non-cash compensation expense | (24 | ) | — | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (30 | ) | — | ||||||
Adjusted EBITDA related to unconsolidated affiliates | 7 | — | |||||||
Segment Adjusted EBITDA | $ | 236 | $ | — | |||||
Distributions from unconsolidated affiliates | $ | 3 | $ | — | |||||
We obtained control of
Retail Marketing |
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Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Total retail gasoline outlets, end of period | 4,979 | — | ||||||
Total company-operated outlets, end of period | 439 | — | ||||||
Gasoline and diesel throughput per company-operated site (gallons/month) | 187,000 | — | ||||||
Revenue | $ | 5,222 | $ | — | ||||
Cost of products sold | 5,036 | — | ||||||
Gross margin | 186 | — | ||||||
Operating expenses, excluding non-cash compensation expense | (98 | ) | — | |||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (15 | ) | — | |||||
LIFO valuation adjustment | (38 | ) | — | |||||
Adjusted EBITDA related to unconsolidated affiliates | 2 | — | ||||||
Segment Adjusted EBITDA | $ | 37 | $ | — | ||||
We acquired our retail marketing segment on
All Other |
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Three Months Ended March 31, | ||||||||||
2013 | 2012 | |||||||||
Revenue | $ | 150 | $ | 129 | ||||||
Cost of products sold | 137 | 91 | ||||||||
Gross margin | 13 | 38 | ||||||||
Unrealized (gains) losses on commodity risk management activities | (4 | ) | 2 | |||||||
Operating expenses, excluding non-cash compensation expense | (5 | ) | (20 | ) | ||||||
Selling, general and administrative expenses, excluding non-cash compensation expense | (18 | ) | (13 | ) | ||||||
Adjusted EBITDA attributable to discontinued operations | 40 | 2 | ||||||||
Adjusted EBITDA related to unconsolidated affiliates | 76 | 75 | ||||||||
Elimination | (7 | ) | (1 | ) | ||||||
Segment Adjusted EBITDA | $ | 95 | $ | 83 | ||||||
Distributions from unconsolidated affiliates | $ | 50 | $ | 23 | ||||||
Amounts reflected in our all other segment primarily include:
-
Our retail propane and other retail propane related operations prior
to our contribution of those operations to
AmeriGas inJanuary 2012 . Our investment inAmeriGas was reflected in the all other segment subsequent to that transaction; -
Southern Union’s local distribution operations beginning
March 26, 2012 ; - Our natural gas compression operations; and,
-
An approximate 30% non-operating interest in PES, a refining joint
venture, effective upon our acquisition of Sunoco on
October 5, 2012 .
The decrease in gross margin and operating expenses was primarily due to
our recognition of
Adjusted EBITDA attributable to discontinued operations reflected the
results of
SUPPLEMENTAL INFORMATION ON CAPITAL EXPENDITURES
(Dollars
in millions)
(unaudited)
The following is a summary of capital expenditures recorded during the three months ended March 31, 2013:
Growth | Maintenance | Total | |||||||||||||
ETP legacy assets: | |||||||||||||||
Intrastate transportation and storage | $ | 2 | $ | 3 | $ | 5 | |||||||||
Interstate transportation and storage | 2 | 3 | 5 | ||||||||||||
Midstream | 113 | 5 | 118 | ||||||||||||
NGL transportation and services(1) | 102 | 3 | 105 | ||||||||||||
219 | 14 | 233 | |||||||||||||
Holdco: | |||||||||||||||
Southern Union transportation and storage | — | (1 | ) | (1 | ) | ||||||||||
Southern Union gathering and processing | 80 | 7 | 87 | ||||||||||||
Retail marketing | 6 | 10 | 16 | ||||||||||||
86 | 16 | 102 | |||||||||||||
Investment in Sunoco Logistics | 136 | 4 | 140 | ||||||||||||
All other (including eliminations) | (6 | ) | 17 | 11 | |||||||||||
Total capital expenditures | $ | 435 | $ | 51 | $ | 486 |
(1) We received capital contributions from Regency related to their 30%
share of
We currently expect capital expenditures for the full year 2013 to be within the following ranges:
Growth | Maintenance | |||||||||||||||||
Low | High | Low | High | |||||||||||||||
ETP legacy assets: | ||||||||||||||||||
Midstream and intrastate transportation and storage | $ | 315 | $ | 355 | $ | 75 | $ | 85 | ||||||||||
Interstate transportation and storage | 10 | 25 | 20 | 30 | ||||||||||||||
NGL transportation and services(1) | 540 | 600 | 15 | 25 | ||||||||||||||
865 | 980 | 110 | 140 | |||||||||||||||
Holdco: | ||||||||||||||||||
Southern Union transportation and storage | 30 | 40 | 90 | 100 | ||||||||||||||
Southern Union gathering and processing | 80 | 80 | 5 | 5 | ||||||||||||||
Retail marketing | 25 | 55 | 65 | 75 | ||||||||||||||
135 | 175 | 160 | 180 | |||||||||||||||
Investment in Sunoco Logistics | 635 | 735 | 60 | 70 | ||||||||||||||
All other (including eliminations) | (5 | ) | (5 | ) | 15 | 15 | ||||||||||||
Total capital expenditures | $ | 1,630 | $ | 1,885 | $ | 345 | $ | 405 |
(1) We expect to receive capital contributions from Regency related to
their 30% share of
SUPPLEMENTAL INFORMATION ON UNCONSOLIDATED AFFILIATES |
|||||||||
(Dollars in millions) |
|||||||||
(unaudited) |
|||||||||
Three Months Ended March 31, | |||||||||
2013 | 2012 | ||||||||
Equity in earnings of unconsolidated affiliates: | |||||||||
AmeriGas | $ | 63 | $ | 40 | |||||
Citrus | 14 | 1 | |||||||
FEP | 13 | 13 | |||||||
Other | (18 | ) | 1 | ||||||
Total equity in earnings of unconsolidated affiliates | $ | 72 | $ | 55 | |||||
Proportionate share of interest, depreciation, amortization, non-cash compensation expense, loss on debt extinguishment and taxes: | |||||||||
AmeriGas | $ | 34 | $ | 35 | |||||
Citrus | 48 | 3 | |||||||
FEP | 5 | 6 | |||||||
Other | 6 | — | |||||||
Total proportionate share of interest, depreciation, amortization, non-cash compensation expense, loss on debt extinguishment and taxes | $ | 93 | $ | 44 | |||||
Adjusted EBITDA related to unconsolidated affiliates: | |||||||||
AmeriGas | $ | 97 | $ | 75 | |||||
Citrus | 62 | 4 | |||||||
FEP | 18 | 19 | |||||||
Other | (12 | ) | 1 | ||||||
Total Adjusted EBITDA attributable to unconsolidated affiliates | $ | 165 | $ | 99 | |||||
Distributions received from unconsolidated affiliates: | |||||||||
AmeriGas | $ | 24 | $ | 23 | |||||
Citrus | 24 | — | |||||||
FEP | 17 | 18 | |||||||
Other | 30 | 1 | |||||||
Total distributions received from unconsolidated affiliates | $ | 95 | $ | 42 |
Source:
Investor Relations:
Energy Transfer
Brent Ratliff,
214-981-0700
or
Media Relations:
Granado
Communications Group
Vicki Granado, 214-599-8785
214-498-9272
(cell)