Energy Transfer (ET 0.82%), a prominent player in the energy sector, reported its first-quarter earnings for 2024 on May 8. While its basic and diluted net income per common unit of $0.32 missed analyst expectations of $0.37, the company notably surpassed revenue estimates with total revenues of $21.6 billion against forecasts of $20.5 billion. This performance reflects robust demand for its services and operational efficiency, contributing to a strong quarter overall.
| Metric | Q1 2024 Result | Analyst Estimate | Q1 2023 Result | Change (YOY) |
|---|---|---|---|---|
| EPS | $0.32 | $0.37 | $0.32 | 0% |
| Revenue | $21.6 billion | $20.5 billion | $19 billion | 14% |
| Adjusted EBITDA | $3,880 million | N/A | $3,433 million | 13% |
Data sources: Company results from company. Analyst estimates from FactSet.
Business overview
Energy Transfer operates as a key conduit in the energy market with a focus on natural gas, crude oil, and NGL transportation and storage. With its expansive network of pipelines and storage facilities, it plays a critical role in the energy supply chain. Recently, the company has put a spotlight on crude oil transportation, with volumes up by 44% to set a record, and embarked on strategic projects like natural-gas-fired power plants and pipeline upgrades to enhance its infrastructure and service offerings.
Quarterly highlights
This quarter saw Energy Transfer making significant strides in operational and financial performance. Specifically, the company recorded a strong revenue surge, buoyed by a 44% increase in crude oil transportation volumes.
It also reported:
- Crude oil terminal volumes: up 10%.
- NGL fractionation volumes: up 11%.
- NGL exports: up approximately 6%.
- NGL transportation volumes: up 5%.
- Interstate natural gas transportation volumes: up 5%.
- Midstream gathered volumes: up 1%.
The acquisition of NuStar Energy by Sunoco played into the company's optimistic financial outlook for the year. Energy Transfer owns Sunoco's general partner.
Noteworthy too is the company's upward revision of its full-year 2024 adjusted EBITDA expectations, now set between $15.0 billion and $15.3 billion, up from the previous range of $14.5 billion to $14.8 billion, reflecting confidence in continued operational excellence and strategic initiatives bearing fruit.
The quarter wasn't without its challenges, however. The missed EPS estimates highlight areas where expectations outran performance, demanding closer scrutiny in subsequent quarters.
Looking ahead
Looking forward, Energy Transfer projects a positive trajectory for its financial and operational performance.
Continued focus on regulatory compliance and environmental stewardship will also be key, as these areas not only mitigate risk but can contribute to operational efficiency and public trust. The evolving energy landscape presents both opportunities and challenges for Energy Transfer, making the quarters ahead critical for realizing its strategic ambitions.
