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Energy Transfer LP (ET) Q2 2021 Results - Earnings Call Transcript

Aug. 03, 2021 11:02 PM ETEnergy Transfer LP (ET), ET.PR.C, ET.PR.D, ET.PR.E14 Comments
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Energy Transfer LP (NYSE:ET) Q2 2021 Earnings Conference Call August 3, 2021 4:30 PM ET

Company Participants

Tom Long - Co-Chief Executive Officer

Mackie McCrea - Co-Chief Executive Officer

Conference Call Participants

Shneur Gershuni - UBS

Jean Ann Salisbury - Bernstein

Keith Stanley - Wolfe Research

Pearce Hammond - Simmons Energy

Jeremy Tonet - JP Morgan

Michael Blum - Wells Fargo

Gabe Moreen - Mizuho


Greetings and welcome to Energy Transfer's Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Tom Long, Chief Financial Officer. Thank you. You may begin.

Tom Long

Thank you, operator. Good afternoon, everyone and welcome to the Energy Transfer's second quarter 2021 earnings call and thank you for joining us today. I'm also joined today by; Mackie McCrea and other members of our senior management team, who are here to help answer your questions after our prepared remarks. Hopefully you saw our press release we issued earlier this afternoon, as well as the slides posted to our website.

As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Security Exchange Act of 1934. These statements are based on our current beliefs, as well as certain assumptions and information currently available to us, and are discussed in more detail on our quarterly report on Form 10-Q for the quarter ended June 30th, 2021, which we expect to be filed this Thursday, August the 5th. I'll also refer to adjusted EBITDA and distributable cash flow or DCF, all of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP measures on our website.

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Comments (14)

Cue Ball profile picture
Hey management : talk is cheap . When did we first hear that ET would raise the distribution & buy in units ? I'll listen AFTER ET does it . Not before .
john18 profile picture
The earnings will be on the lower side of the guidance for the year.
It is not the best earnings but given the low price I am ok with it.
ET's value will rise a lot when oil price is maintained at high level (or even above $60 per bbl).
metal27 profile picture
Again KW is absent, sending another tell.
@metal27 why would he be there? ER confidence call is a management and not a board event.
Assetmgrsc profile picture
With respect to DAPL litigation, two things are different than before: 1) The Cores EIS will take time to complete and the COE will not rush this as they believe it is foolish and unnecessary. This means that ET is making money every month on the pipeline. 2) The state of ND has officially come onto the scene with the courts arguing that shutting DAPL will hurt their constituents. So, DAPL will remain open for at least two years and ET will probably win their case anyway.
Currently, ET seems to be firing on almost all cylinders, making money, paying down debt and once their debt reaches a certain level the excess cash has to go for either increasing the distribution and/or buying in shares. They could have more projects in the future, probably will, but it seems that they have accepted the message that debt has to be better managed and once the market realizes this, the shares will rise to a more comparable position with their competitors.
Cue Ball profile picture
@Assetmgrsc They are addicted to more deals .
cliccmade profile picture
No reason why this stock is down. Should be pushing to $15
Cue Ball profile picture
They will NEVER buy in units . Looking to buy something .....again .
Ed L profile picture
@Cue Ball Is the St. Charles LNG facility still on the table? That discussion has quieted.
Sanmartinoclimber profile picture
I thought that DAPL maxes out at 570k bbls/day...sounds this this read says 750k per day...is this a typo or is it 750? Regardless the Panama and China growth potential discussed seems like a plus
@Sanmartinoclimber the DAPL expansion project was out in service, increasing capy to 750K bbls/day
What did I miss? Long Player failed to keep us apprised of the DAPL litigation! Take a look at this statement from the beginning of the transcript:

Now, looking to Dakota Access in May, the DC District Court denied the plaintiff's motion for an injunction to shut down Dakota Access, and thereafter dismissed the plaintiffs' lawsuit against the Army Corps.

What? The entire lawsuit has been dismissed? Long Player, wherefore art thou?
No No. The ruling said the EIS has to be compelted by the Corps. The lawsuit was trying to shut down pipeline due to lack of same. One the EIS is compelte, "Let the Lawsuits Begin"
dmaroz profile picture

It is possible, sure, but the risk from those law suits is significantly diminished imho. When DAPL shutdown was a real possibility you had to worry about actual damage from the shutdown itself, cancelled contracts, potential law suits from operating partners. It is going to be a different story assuming EIS is completed.
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