Energy Transfer LP (NYSE:ET) Q4 2022 Earnings Call Transcript

Mackie McCrea: Yes, just a common theme I’d say throughout this on every question. I think just asked, golly look at a pipeline map and look at what energy transport can do on moving volumes to Gulf Coast, especially to Louisiana, after buying we now have three €“ I’m sorry, four 42-inch pipes in North Louisiana. We have connections from Carthage to Perryville and out to Gulf Run we connect almost to the Gulf Coast and other pipelines. So we’re so well positioned both to feed our own LNG project, should we get that to FID, but regardless even our results, we’re seeing volumes find their way from North Marcellus to and Trunkline and through all of our pipeline system to the Gulf Coast already to see the growing demand for LNG. So we’re so well positioned and pretty excited about the full utilization and even expansions of our systems across the South.

Jeremy Tonet: Got it. That’s really helpful. I’ll leave it there, thanks.

Mackie McCrea: Thank you.

Operator: Our next question comes from Brian Reynolds with UBS. Please go ahead.

Brian Reynolds: Hi, good afternoon everyone. Maybe to start off on just the guidance, it implies kind of limited growth year-over-year based off of the presentation, where you put out some puts and takes with commodity declines offset by volume growth. So I was just curious if you could perhaps just unpack the base assumptions maybe around the commodity deck and then as well, just a high-level view on Permian and Haynesville growth to help us square the guidance. Thanks.

Tom Long: Hi, you bet, Brian. This is Tom Long. Really, when you look at 2022, obviously, it was a great year for us again with the results that were given to you right now. But when you really look at the volumes, if you remember, we started off the year with our guidance of about $11.8 billion to $12.2 billion, when you looked at it. And then we saw the prices start spiking up through the year with the conflict that occurred over in Ukraine. But likewise, when we got to the first quarter and our first quarter call, we talked about the optimization opportunities that our com ops group were able to achieve. And we said that was probably to $225 million to $250 million. So it gave us a real shot in the arm as well as in the prices.

And as we continue through the year, if you were comparing 2022 results, with what we’ve got in the guidance for 2023, you’re going to have about probably $400 million to $600 million that was coming just from the, what we call the price and the spreads that we saw. So the assumptions €“ the last part of your question, I think, as far as the assumptions go, we’re pretty much using the forward curve. We’re staying kind of down the middle of the fairway. And that’s kind of the walk forward from 2022 to 2023. But you can see, once again, between the numbers that I gave you there for the first quarter and then the pricing for the full year, hopefully, that gives you a little bit of a bridge of where we are. So we’re very excited with what we’ve been able to achieve with the various projects or various assets that are coming online that we continue to see, as well as the volumes.

So we’re obviously very excited to be able to put numbers of the $12.9 billion to $13.3 billion to you.