Energy Transfer Partners Reports Third Quarter Results
OREANDA-NEWS. November 11, 2014. Energy Transfer Partners, L.P. (NYSE: ETP) today reported its financial results for the quarter ended September 30, 2014. Adjusted EBITDA for Energy Transfer Partners, L.P. (“ETP” or the “Partnership”) for the three months ended September 30, 2014 totaled USD 1.17 billion, an increase of USD 230 million over the same period last year.
Distributable Cash Flow attributable to the partners of ETP for the three months ended September 30, 2014 totaled USD 610 million, an increase of USD 77 million over the same period last year. Income from continuing operations for the three months ended September 30, 2014 was USD 447 million, an increase of USD 56 million over the same period last year.
In October 2014, ETP announced that its Board of Directors approved an increase in its quarterly distribution to USD 0.9750 per unit (USD 3.90 annualized) on ETP Common Units for the quarter ended September 30, 2014, representing an increase of USD 0.28 per Common Unit on an annualized basis, or 7.7%, compared to the third quarter of 2013 For the quarter ended September 30, 2014, ETP’s distribution coverage ratio was 1.13x.
ETP’s other recent key accomplishments include the following:
In August 2014, ETP and Susser Holdings Corporation (“Susser”) completed the previously announced merger of an indirectly wholly-owned subsidiary of ETP, with and into Susser, with Susser surviving the merger as a subsidiary of ETP for total consideration valued at \\$1.8 billion.
In October 2014, Sunoco LP (previously named Susser Petroleum Partners LP) acquired Mid-Atlantic Convenience Stores, LLC (“MACS”) from ETP in a transaction valued at approximately \\$768 million. The transaction included approximately 110 company-operated retail convenience stores and 200 dealer-operated and consignment sites from MACS.
In October 2014, Energy Transfer Equity, L.P. (“ETE”), ETP and Phillips 66 announced that they have formed two joint ventures to develop the previously announced Dakota Access Pipeline (“DAPL”) and Energy Transfer Crude Oil Pipeline (“ETCOP”) projects. ETP and ETE will hold an aggregate interest of 75% in each joint venture and will operate both pipeline systems. Phillips 66 owns the remaining 25% interests and will fund its proportionate share of the construction costs. The DAPL and ETCOP projects are expected to begin commercial operations in the fourth quarter of 2016.
In October 2014, ETP announced it has secured additional long-term binding shipper agreements on its Rover natural gas pipeline project to connect Marcellus and Utica Shale supplies to markets in the Midwest, Great Lakes and Gulf Coast regions of the United States and Canada. As a result of the additional agreements, the pipeline is fully subscribed with 15 and 20 year fee-based contracts to transport 3.25 billion cubic feet per day of capacity.
On November 5, 2014, ETP announced its plans to construct two new 200 million cubic feet per day cryogenic gas processing plants and associated gathering systems in the Eagle Ford and Eaglebine production areas. ETP expects to have the first plant online by June 2015 and the second plant by the fourth quarter of 2015.
On November 5, 2014, ETP and Regency Energy Partners LP (“Regency”) announced that Lone Star NGL LLC (“Lone Star”) will construct a third natural gas liquids fractionator at its facility in Mont Belvieu, Texas, which will bring Lone Star’s total fractionation capacity at Mont Belvieu to 300,000 Bbls/d. Lone Star’s third fractionator is scheduled to be operational by December 2015.
As of September 30, 2014, ETP’s USD 2.5 billion revolving credit facility had \\$800 million of outstanding borrowings, and the leverage ratio, as defined by the credit agreement, was 4.13x.
An analysis of ETP’s segment results and other supplementary data is provided after the financial tables shown below. ETP has scheduled a conference call for 8:00 a.m. Central Time, Thursday, November 6, 2014 to discuss the third quarter 2014 results. The conference call will be broadcast live via an internet web cast, which can be accessed through www.energytransfer.com and will also be available for replay on ETP’s web site for a limited time.
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