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This Segment Was ETP’s Top Performer in 4Q16

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ETP’s Liquids Transportation and Services segment

Energy Transfer Partners’ (ETP) Liquids Transportation and Services segment provides NGL (natural gas liquids) transportation and fractionation services. The segment continues to be ETP’s top performing segment in 4Q16.

The segment benefited from higher NGL and crude oil transportation volumes. Crude oil volumes were driven by the startup of Phase 1 of the Bayou Bridge crude oil pipeline. Moreover, the segment continues to experience higher fractionation volumes, driven by the ramp-up of ETP’s third fractionator at Mont Belvieu. segment EBITDA

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Midstream segment

ETP’s Midstream segment mainly provides natural gas gathering and processing services. The segment’s 4Q16 performance was negatively impacted by higher G&A (general & administrative) expenses and the decline in gathering and processing volumes in some regions, including Eagle Ford and Barnett shale.

Notably, this decline was slightly offset by resilient Permian and Northeast volumes and higher non-fee based processing margins due to a slight recovery in crude oil and NGL (natural gas liquids) prices.

Interstate Transportation and Storage segment

ETP’s Interstate and Storage segments, which is involved in natural gas transportation, storage, and sales between US states, saw 4.9% YoY (year-over-year) decline in adjusted EBITDA due to lower natural gas throughput volumes along the Trunkline and Transwestern pipeline. This was partially offset by volume growth along the Tiger pipeline.

Intrastate Transportation and Storage segment

ETP’s Intrastate and Storage segment, which is involved in natural gas transportation, storage, and sales within US states, saw 24.5% YoY (year-over-year) growth in adjusted EBITDA. The segment mainly benefitted from higher natural gas sale volumes and a slight recovery in natural gas prices. This was slightly offset by lower volumes from the Barnett Shale region.

ETP’s Investment in Sunoco Logistics segment represents Sunoco Logistics Partners’ (SXL) crude oil, refined products, and NGLs transportation, storage, and marketing business.

We’ll analyze SXL’s 4Q16 operating performance later in this series.

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