Ahead of the government’s expected approval of its merger with Oklahoma-based Enable Midstream Partners LP, Texas-based Energy Transfer reported third quarter net income of $635 million, an increase of $1.29 billion from a year earlier.
Energy Transfer announced its $7 billion Enable Midstream merger in February but still awaits Hart-Scott-Rodino Act clearance. It is expected to close in the fourth quarter of 2021.
Energy Transfer reported the net income per limited partner for the third quarter amounted to 20 cents per unit.
Adjusted EBITDA for the quarter was down slightly, amounting to $2.58 billion compared to $2.87 billion in the third quarter of 2020. The third quarter of 2020 benefited from approximately $300 million of one-time items and gains from optimization activities that did not re-occur in the current period.
Distributable Cash Flow attributable to partners, as adjusted, for the three months ended September 30, 2021 was $1.31 billion compared to $1.69 billion for the three months ended September 30, 2020.
The company also reduced its outstanding debt by nearly $800 million during the third quarter, while its reduction for year-to-date 2021 totaled nearly $6 billion.
Cap-ex for the quarter totaled $632 million.
The company stated it reached a record for NGL transportation and fractionation volumes in the quarter as well as for NGL and refined product terminal volumes. During the quarter, Energy Transfer also completed its Permian Bridge project providing increased connectivity between the company’s natural gas gathering and processing assets in the Delaware Basin and its assets in the Midland Basin.
Energy Transfer also commissioned the next phase of the Mariner East Pipeline project during the quarter. The company also entered its second major solar energy power purchase agreement involving 120 megawatts of electricity from the Eiffel Solar project in Northeast Texas.
The company also signed a memorandum of understanding with the Republic of Panama to study the feasibility of a proposed Trans-Panama Gateway LPG pipeline and is reviewing the potential creation of a new strategically located NGL hub in Panama.
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