uploads/2014/09/ETEs-earnings.png

A key overview of Energy Transfer Equity’s earnings

By

Updated

ETE’s earnings

Energy Transfer Equity (ETE) reported its earnings for the second quarter on August 6.

ETEs earnings

Financial highlights

ETE reported revenue of $14 billion for the quarter—compared to the Wall Street analysts’ estimate of $13 billion. Revenues were up 17% year-over-year (or YoY).

Net income for the quarter was $164 million—29% higher YoY. The distributable cash flow (or DCF) for the quarter was $218 million.

The company announced a quarterly dividend of $0.38 per share. This represents a $1.52 annualized dividend. It’s a dividend yield of 2.78%. ETE’s dividend last quarter was $0.36.

The distribution coverage ratio for the quarter was 1.06x.

Key accomplishments in 2Q14

Apart from increasing its quarterly distribution, ETE noted the following accomplishments this quarter. It included the accomplishments in its news release.

  • In April, ETE amended its Senior Secured Term Loan Agreement. It increased the aggregate principal amount to $1.4 billion. The proceeds from this $400 million increase were used to repay borrowings under its revolving credit facility. The earnings were also used for general partnership purposes.
  • From January until May, ETE completed its repurchase of ETE common units under its $1 billion common unit buyback program.
  • In May, ETE issued $700 million aggregate principal amount of its 5.875% senior notes—due in 2024—in a private placement.

ETE’s subsidiaries

ETE’s main cash flow sources are the distributions it receives from Energy Transfer Partners L.P. (ETP), Sunoco Logistics (SXL), and Regency Energy Partners (RGP). Its performance depends on these companies. Most of these companies are components of the Global X MLP ETF (MLPA).

The next part in the series will discuss ETP’s 2Q14 earnings.

Article continues below advertisement
Advertisement

More From Market Realist