Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
The Final Stretch: Energy Transfer Pushes For Mariner East Project Ahead Of The Stunning Q3 Results
12/08/21
A market share of almost 20%, double that of 18 months ago, was held by Energy Transfer LP in the third quarter, the most of any country or company in the world in NGL exports. The company, however, has a bit of a slip in the results, compared to the strong showing over the same period a year prior.
In 2020, consolidated adjusted EBITDA in the third quarter was $2.9 billion, compared to $2.6 billion this time around. In line with this, discounted cash flow (DCF) is also down to $1.31 billion, from $1.69 billion a year ago.
Energy Transfer also reported earnings of $0.20 per unit and revenues of $16.66 billion, which solidly outperformed expectations from the likes of the Zacks Consensus with their estimate of $14.96 billion.
Tom Long, co-CEO of Energy, noted that the company was able to tie itself over the higher volumes in most segments seamlessly this year due to the one-time gain of $103 million in the midstream segment and the success of the former optimizations. Long also noted that the winter storm of 2021 resulted in higher utility bills and other expenditures.
All of these gains and expenses — the result of Energy Transfer owning and operating one of the largest and most diversified portfolios of energy assets in the United States, with strategic stakes in all major domestic production basins. All of this is in addition to midstream, intrastate, and interstate natural gas transportation and storage assets, oil and petroleum products transportation and terminal assets, NGL fractionation assets, and acquisition and marketing assets.
In the meantime, though, one of the heaviest things on Energy's plate is the Mariner East project with its myriad of challenges. A new phase in the project has been commissioned, which will increase the project's capacity to 260,000 bbl/d. Yet, even with the uncompleted project, the volumes going through the system and the terminal in Marcus Hook, Pa saw a 12% increase compared to the last year.
However, the project is handicapped at the moment. New permit modifications are required for converting the final directional drill to an open cut. Afterward, Mariner East's last segment could be operational by the end of the first half of 2022. But whether or not this timeline will hold to be true is unknown for now.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Smart Investments Are The Key To Success: Williams JV Brought Benefits At The End Of The Year
Williams boasts its Q3 results. With a revenue of $2.48 billion, the company beat the analyst estimate of $2.09 billion and also improved upon its own results over the same period in 2020. Mind you, much of this success was attributed to production in Wyoming's Green River Basin's Wamsutter Field and Williams JV with Crowheart.
No More Gas Flaring: the Permian's Double E Pipeline is brought into service in West Texas
Permian Basins gas infrastructure boom: Summit Midstream puts into service a new pipeline system, aimed at reducing gas flaring in the area. Besides ecological concerns, the project will also transport almost 1,5 billion cubic feet of gas per day — enough to supply 5 million U.S. homes every day. According to Federal Energy Statistics, the project cost a whopping $450 million.
Kinetik Holdings recently announced a series of transactions in the energy sector. They struck a deal to buy Durango Permian infrastructure for $765 million. At the same time, they're selling their 16% share in the Gulf Coast Express Pipeline to ArcLight Capital Partners for $540 million. The total purchase cost includes $510 million in cash paid immediately and an additional $30 million that will be paid later, depending on whether they decide to expand further.
Recently, the Permian has seen significant acquisitions: Exxon Mobil purchased Pioneer Natural Resources for about $60 billion. Diamondback Energy's $26 billion deal to acquire Endeavor Energy Resources is currently on hold due to requests from the U.S. Federal Trade Commission. Occidental’s acquisition of CrownRock for $12 billion in the Midland.
EOG Resources is pushing boundaries in Ohio's Utica oil play and now drilling on the Sable pad, also located in Noble County. This site features the 3.7-mile lateral currently under construction. The company's first multi-well pads in the area Timberwolf and Xavier have each produced over 200,000 barrels of oil since their inception—Timberwolf in August and Xavier in October. A third site, the four-well White Rhino pad in Noble County, is also showing promising early results, according to Keith Trasko, EOG’s Senior Vice President of Exploration and Production, who noted the wells are performing as expected in their initial weeks.