ET - Energy Transfer: Solid Everywhere It Matters

2024-02-15 18:22:05 ET

Summary

• Energy Transfer reported a strong fourth quarter, beating expectations on key metrics such as EBITDA and distributable cash flow.
• The company's capital spending for 2024 is projected to be lower than estimated, with a focus on expanding the Nederland export terminal.
• Energy Transfer's volume growth in various sectors indicates appropriate capital expenditures and successful acquisitions, such as Crestwood.

Energy Transfer Fourth Quarter Update:

Energy Transfer ( ET ) just reported a fourth quarter that beat on every metric that matters, especially EBITDA, and distributable cash flow, which were $3.6 billion and $2 billion, respectively for the quarter and $13.7 billion and $7.6 billion, respectively for the year. Free cash flow after distributions was $970 million for the quarter, making for $3.6 billion for the year. This cash flow enabled the company to finish the year at around 4x leverage (I actually calculate lower, but the full balance sheet hasn't been released yet) even after spending around $2.3 billion on capital expenditures for the year, $1.6 billion growth, and $762 maintenance....

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