Energy Transfer Reports Higher Q4 Earnings, Expects Growth in 2024 on NGL Demand

(Reuters) — Energy Transfer reported on Wednesday higher adjusted earnings for the fourth quarter of 2023 on the back of increased demand for natural gas liquids (NGL) and forecast earnings would grow in 2024.

The company's adjusted EBITDA for the three months ended Dec. 31, was $3.6 billion, up from $3.44 billion for the same period last year. Energy Transfer expects its 2024 adjusted EBITDA to range between $14.5 billion and $14.8 billion, the midpoint of which would be a 7% increase from 2023.

Adjusted EBITDA in 2023 was $100 million above the high end of the company's 2023 estimates.

For 2024, Energy Transfer's growth capital expenditures will range from $2.4 billion to $2.6 billion, the company expects, with maintenance capital spending of between $835 million and $865 million.

Energy Transfer said its natural gas liquids fractionation volumes and transportation volumes reached a new company record in the fourth quarter. NGL exports were up more than 13%, driven by increased international demand for NGLs, company officials said during an earnings call on Wednesday.

NGLs can be used as inputs for petrochemical plants or burned for space heating and cooking, among other uses.

The company said construction was underway on an NGL export capacity expansion at its Nederland terminal, with the project expected to be in service in mid-2025.

Despite a recent moratorium from the Biden administration on the approval of liquefied natural gas exports, Energy Transfer continues to pursue the development of its Lake Charles LNG facility project, said co-chief executive Thomas Long.

Crude oil transportation and terminal volumes were up 39% and 16%, respectively, in the fourth quarter.

Despite a lower natural gas price environment, the company sees modest to fairly significant growth out of the Permian basin as a result of higher oil prices, said co-chief executive Marshall McCrea.

During the fourth quarter, Energy Transfer completed its previously announced merger with Crestwood Equity Partners. The merger is expected to generate $80 million of annual cost savings by 2026 with $65 million in 2024.

In November, Energy Transfer entered into a non-binding heads of agreement with TotalEnergies related to term crude oil offtake of 4 million barrels per month from its proposed Blue Marlin Offshore Port.

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