Energy Transfer LP Files Q2 2024 10-Q

TL;DR

ET's Q2 10-Q is in - check financials for latest performance.

AI Summary

Energy Transfer LP filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business segment performance are presented, reflecting the company's ongoing activities in natural gas transmission and related energy infrastructure.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Energy Transfer LP, crucial for understanding the company's performance and future outlook in the energy sector.

Risk Assessment

Risk Level: medium — As a publicly traded energy company, Energy Transfer LP is subject to market volatility, regulatory changes, and operational risks inherent in the energy sector.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-08 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 4922 — SIC Code (Standard Industrial Classification for Natural Gas Transmission.)

Key Players & Entities

• Energy Transfer LP (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240808 (date) — Filing date
• Dallas, TX (location) — Company headquarters

FAQ

Filing Documents

• et-20240630.htm (10-Q) — 2616KB
• et06-30x2024ex33.htm (EX-3.3) — 1708KB
• et06-30x2024ex311.htm (EX-31.1) — 10KB
• et06-30x2024ex312.htm (EX-31.2) — 10KB
• et06-30x2024ex313.htm (EX-31.3) — 10KB
• et06-30x2024ex321.htm (EX-32.1) — 5KB
• et06-30x2024ex322.htm (EX-32.2) — 5KB
• et06-30x2024ex323.htm (EX-32.3) — 5KB
• et-20240630_g1.jpg (GRAPHIC) — 124KB
• 0001276187-24-000083.txt ( ) — 14113KB
• et-20240630.xsd (EX-101.SCH) — 67KB
• et-20240630_cal.xml (EX-101.CAL) — 81KB
• et-20240630_def.xml (EX-101.DEF) — 489KB
• et-20240630_lab.xml (EX-101.LAB) — 798KB
• et-20240630_pre.xml (EX-101.PRE) — 605KB
• et-20240630_htm.xml (XML) — 2218KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS (Unaudited)

ITEM 1. FINANCIAL STATEMENTS (Unaudited) Consolidated Balance Sheets 4 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Equity 8 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 1. Organization and Basis of Presentation 10 2. Acquisitions, Divestitures and Other Transactions 10 3. Cash and Cash Equivalents 12 4. Inventories 14 5. Fair Value Measures 14 6. Net Income per Common Unit 16 7. Debt Obligations 16 8. Redeemable Noncontrolling Interests 18 9. Equity 19 10. Regulatory Matters, Commitments, Contingencies and Environmental Liabilities 21 11. Revenue 33 12. Derivative Assets and Liabilities 34 13. Reportable Segments 37

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 41 Recent Developments 41 Results of Operations 44 Liquidity and Capital Resources 58 Cash Distributions 63

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 67

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 68

— OTHER INFORMATION

PART II — OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 69

RISK FACTORS

ITEM 1A. RISK FACTORS 69

EXHIBITS

ITEM 6. EXHIBITS 70 SIGNATURE 71 2 Table of Contents Definitions References to the "Partnership" or "Energy Transfer" refer to Energy Transfer LP. In addition, the following is a list of certain acronyms and terms used throughout this document: /d per day AOCI accumulated other comprehensive income Bakken Pipeline Refers collectively to Dakota Access and Energy Transfer Crude Oil Pipeline and/or Energy Transfer Crude Oil Company, LLC, a non-wholly owned subsidiary of Energy Transfer BBtu billion British thermal units Bcf billion cubic feet Citrus Citrus, LLC, a 50/50 joint venture which owns Florida Gas Transmission Company, LLC, which owns the Florida Gas Transmission Pipeline Dakota Access Dakota Access, LLC, a non-wholly owned subsidiary of Energy Transfer and/or Dakota Access Pipeline Energy Transfer Preferred Units Collectively, the Series A Preferred Units, Series B Preferred Units, Series C Preferred Units, Series D Preferred Units, Series E Preferred Units, Series F Preferred Units, Series G Preferred Units, Series H Preferred Units and Series I Preferred Units Energy Transfer R&M Energy Transfer (R&M), LLC (formerly Sunoco (R&M), LLC) ETC Sunoco ETC Sunoco Holdings LLC (formerly Sunoco, Inc.), a wholly owned subsidiary of Energy Transfer ETO Energy Transfer Operating, L.P., formerly a non-wholly owned subsidiary of Energy Transfer until its merger into the Partnership in April 2021 Exchange Act Securities Exchange Act of 1934, as amended Explorer Explorer Pipeline Company FERC Federal Energy Regulatory Commission GAAP accounting principles generally accepted in the United States of America General Partner LE GP, LLC, the general partner of Energy Transfer IFERC Inside FERC's Gas Market Report MBbls thousand barrels MEP Midcontinent Express Pipeline LLC MMcf million cubit feet NGL natural gas liquid, such as propane, butane and natural gasoline NYMEX New York Mercantile Exchange OTC over-the-counter Panhandle Panhandle E

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ENERGY TRANSFER LP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in millions) (unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 650 $ 161 Accounts receivable, net 9,540 9,047 Accounts receivable from related companies 107 101 Inventories 2,624 2,478 Income taxes receivable 33 67 Derivative assets 28 66 Other current assets 424 513 Total current assets 13,406 12,433 Property, plant and equipment 123,481 114,932 Accumulated depreciation and depletion ( 31,593 ) ( 29,581 ) Property, plant and equipment, net 91,888 85,351 Investments in unconsolidated affiliates 3,236 3,097 Non-current derivative assets 1 — Lease right-of-use assets, net 854 826 Other non-current assets, net 1,842 1,733 Intangible assets, net 6,202 6,239 Goodwill 3,910 4,019 Total assets $ 121,339 $ 113,698 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents ENERGY TRANSFER LP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (Dollars in million) (unaudited) June 30, 2024 December 31, 2023 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 7,467 $ 6,663 Accounts payable to related companies 11 21 Derivative liabilities 15 8 Operating lease current liabilities 66 56 Accrued and other current liabilities 3,893 3,521 Current maturities of long-term debt 257 1,008 Total current liabilities 11,709 11,277 Long-term debt, less current maturities 57,359 51,380 Non-current derivative liabilities — 4 Non-current operating lease liabilities 750 778 Deferred income taxes 4,001 3,931 Other non-current liabilities 1,631 1,611 Commitments and contingencies Redeemable noncontrolling interests 417 778 Equity: Limited Partners: Preferred Unitholders 3,852 6,459 Common Unitholders 30,414 30,197 General Partner ( 2 ) ( 2 ) Accumulated other comprehensive income 48 28 Total partners' capital 34,312

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular dollar and unit amounts, except per unit data, are in millions) (unaudited) 1. ORGANIZATION AND BASIS OF PRESENTATION Organization The consolidated financial statements presented herein contain the results of Energy Transfer LP and its subsidiaries (the "Partnership," "we," "us," "our" or "Energy Transfer"). Basis of Presentation The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 16, 2024. In the opinion of the Partnership's management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. The consolidated financial statements of the Partnership presented herein include the results of operations of our controlled subsidiaries, including Sunoco LP and USAC. The Partnership owns the general partner interest, incentive distribution rights and 28.5 million common units of Sunoco LP, and the general partner interests and 46.1 million common units of USAC. The operations of certain pipelines and terminals in which we own an undivided interest are proportionately consolidated in the accompanying consolidated financial statements. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net income or total equity. Use of Estimates The unaudited consolidated financial statements have been prepared in co

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