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

So we do anticipate making some announcements in the fairly near future on expanding our export capacity.

Tom Long: And John, I’m going to go ahead and jump in here, too. This is Tom Long. As far as the second part of your question there. As you can see, we gave the guidance of $1.6 billion to $1.8 billion for a company our size, you can probably also appreciate that we’ve got a lot of opportunities. So that’s really the number that we’re starting the year here based upon projects we’ve identified, but we’ve talked about these other projects, and you stated that correctly that that’s €“ the other projects that have not got to FID, we’re not including in this. So as those come along through the year, we will talk more about those, which could impact that number. But I think the other thing to make sure you stay focused on from a CapEx standpoint is that it doesn’t include some of the small M&A type opportunities.

So a lot of this growth capital are projects right now that are pretty short bills. We get good returns, very good returns on them, and at the same time we get good capital returns on them in a shorter period of time, let’s say, less than 12 months. So we’re going to continue to focus on doing the things that need to strengthen the company and continue to grow it. And so you’ll expect much more to come with the CapEx that we’re looking at, so.

Mackie McCrea: Hey, John, this is Mackie. Add one more thing, too. Keep in mind, we have built a franchise up there. We’re the only company that can transport growth of LPG. We’re the only company that can transport through pipelines growth and ethane we have the ability to increase our ethane capacity by 3 times of what we’re moving today. We can more than double our LPG capacity. So when we’re talking about expansion at Marcus Hook, we’re going to have a decent good rate of return on those €“ that expansion capital and then very little capital for same pump stations to utilize existing capacity that’s already in the ground.

John Mackay: That great. Really clear. Appreciate all the color.

Operator: Our next question comes from Jean Ann Salisbury with Bernstein. Please go ahead.

Jean Ann Salisbury: Hi. How much do you anticipate that both run can physically flow until Golden Pass comes online? And are you getting paid for all contracts today even before that?

Mackie McCrea: Jen, this is Mackie again. That contract has a foundation customer Golden Pass. Yes, they began being demand charges first part of this year would actually ramp up a little later in the year. And we will be fully utilizing that pipeline as much as we possible can. I believe we flows almost up to 0.5 Bcf a day, actually physical volumes in addition to the demand charges that we’re getting from Golden Pass. And it’s our expectations that that team will continue to fill that pipe up and every bit of the capacity is available until it’s begins being utilized by Golden Pass. As you know, probably that’s 1.65 Bcf of capacity that we can easily expand.