Energy Transfer LP (NYSE:ET) Q1 2023 Earnings Call Transcript

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Gabe Moreen: Thanks, Mackie. And then maybe if I can also ask about the $2 billion growth CapEx figure now for 2023 to the extent that you’re looking at additional stuff, would you characterize it as a good chance that other projects get FID in that $2 billion CapEx figure potentially goes higher for this year?

Mackie McCrea: Yes. Gosh. I guess I’d be a little disappointed if we don’t get some projects approved. How much of those dollars spend in 2023 remains to be seen. Of course, some of these bigger dollar projects that we’re talking about, we don’t anticipate any significant dollars contributing to capital needs in 2023, even if they get to FID in the next three to six months. But we’ve got a very aggressive team of commercial folks in all of segments and we’re chasing deals everywhere. And so, we — don’t see anything overly material from the standpoint of huge capital needs, but we’ll continue to have gathering needs and adding compression and things like that that will add of revenue for our assets.

Gabe Moreen: Thanks, Mac.

Operator: Thank you. And the next question comes from Marc Solecitto with Barclays.

Marc Solecitto: Hi, good afternoon. As we think about OpEx in the NGL segment and particularly on the frac side, can you just remind us how we should think about the impact from lower nat gas prices in that segment and how that flows through to your gas and utility costs?

Tom Long: Yes, it’s kind of twofold. One, we are able to gain some upside on the energy that we keep based on the Houston price versus what we charge for. So we’re harmed a little bit there from the standpoint of revenue. However, with lower prices, we also benefit from the operation side of that. So we kind of have both sides of the cost there. But, yes, with the lower gas prices, we aren’t benefiting as much on the excess energy that we keep compared to what we charge back to our customers.

Marc Solecitto: Got it. That’s helpful. And then maybe just to circle back on Lake Charles and not to put the carriers before the horse, but just to touch on the progress that you have made. Wondering if there’s been any update on the EPC side?

Tom Long: As I think everybody knows, we’re working with two different companies and we expect to get one of those here soon and the next within next 10 or 12 days. And we are very pleased with what we’re seeing and where we think the costs will come in, but we will be seeing some of those kind of final numbers in the very near future.

Marc Solecitto: Got it. Appreciate the time.

Operator: Thank you. This concludes the question and answer session. I would like to turn the floor to Tom Long for any closing comments.

Tom Long: Well once again, we thank all of you for joining us today. As you can see, we’re very excited about all the great stuff we have going on. So we look forward to talking with you soon and thank all of you for your support.

Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.

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