Energy Transfer LP (NYSE:ET) Q3 2023 Earnings Call Transcript

We think we’ll see that over the next couple of years, and then we’ll have new contracts lined up to come online on our Flex port. So, we’re pretty excited. We got in this export business a little later than most of our competitors, certainly our biggest competitor. We’ve kind of gone from nowhere to the leading exporter in the world, and we’re proud of that. Proud of our commercial team that’s done all these deals. Proud of our E&C team who builds these assets so quickly, proud of our operating team led by Greg Mcilwain, who runs these systems efficiently and reliably, and more importantly, safely. So, we are very proud of our team and what we’ve done over the last five or six years to kind of start from nowhere and grow to where we’re at today, and we have such a bright future on the assets that we are building now and the contracts that we have in place.

Jean Ann Salisbury: Great, I’ll leave it there. Thank you.

Operator: Thank you. Next question will be from John Mackay of Goldman Sachs. Please go ahead.

John Mackay: Hey, everyone. Thanks for the time. Maybe just taking that last piece, I mean, talking about exports probably being the tightest part of the value chain for you right now, at least that’s what we’re picking up on. But I guess if you’re looking across the kind of broader ET and kind of ET combined Crestwood footprint right now, where else are you seeing relative tightness and a call on the market, either you guys or others, to add incremental capacity? Is it the Haynesville? Is it more on processing in the Permian, just curious your thoughts overall, if we’re looking maybe beyond export?

Tom Long: Yes. Let me just hit every region real quickly to kind of address, I hope, your question. And so, you start in the northeast, we’re positioned incredibly well. On any kind of product growth up there, whether it’s ethane or LPG, we are kind of the only outlet with our mariner franchise. So, we call it dry powder or available capacity, whatever you want to call it, we are ready to capture any kind of growth up there. And then, as you come further south, we mentioned that we’ve got the ability to grow our transport volumes from the Permian Basin fairly significantly. We’re expanding our Flex port fairly significantly. And we haven’t really hit on this on this call, but there is a lot of gas in north Louisiana. Yes, it’s slowed down a little bit with gas prices here the last two or three months.

We think it’s going to pick back up as prices have improved and will continue to improve. There’s enormous reserves there. But on top of that, we have multiple intrastate and interstate pipelines that feed into east Texas and north Louisiana. And so, we’re very optimistic on our Gulf Run expansion. We can add compression and add a Bcf a day, but we think it’s much more likely that we will sign up enough to loop our existing Gulf Run Zone 2 pipeline, especially aligned with LNG, if we get that FID. But we see that as certainly a huge growth area for us on a large pipeline project somewhere in the future, along with what we’ve already talked about, our Warrior expert project and other areas. So, depending on where the area is, we’re either situated very well to grow with next no capital, or we have such an excellent position to aggregate volumes to support a project like Gulf Run, an expansion project like Gulf Run.

John Mackay: All right, that’s clear. Thank you. Maybe just following up, if we’re thinking about ’23 guidance overall, can you just maybe a quick breakdown of how much of the step-up was Crestwood versus kind of underlying business outperformance? And maybe if you’re touching on the Gulf Run contributions third quarter interstate was particularly strong, or third quarter gas overall was pretty strong, particularly for kind of a shoulder season. Is this a clean new run rate from here, or are there any kind of one-offs in there? Thanks.