ETE versus WMB: What Are Their Capital Spending Plans?



Energy Transfer Equity

Energy Transfer Equity’s (ETE) midstream MLP subsidiary, Energy Transfer Partners (ETP), expects its 2018 capex to be between $4.8 billion and $5.2 billion. At the midpoint, this represents a 15.2% fall compared to the previous year.

The partnership could see a slight increase in its 2018 capital guidance following the announcement of new projects, including a joint venture with Enterprise Products Partners and the expansion of the Permian Express 3 pipeline.

Energy Transfer Partners’ NGLs and Refined Products Transportation and Services segment has received the maximum allocation among its five major segments. The partnership expects to spend between $2.43 billion and $2.48 billion on this segment, including spending on the Mariner East 2, the Lone Star Frac V and VI, and the Mariner East 2X.

The Midstream segment received the second-highest capital budget allocation. The partnership expects to spend between $750 million and $800 million on the expansion of its gathering and processing capacity. Energy Transfer Partners’ allocation of its capital budget indicates its focus on its natural gas midstream and NGLs (natural gas liquids) businesses.

Energy Transfer Partners recently placed Phase 2 of the Rover Pipeline project into service. It expects to place six other projects into service by the end of this year, including Phase 2 of the Bayou Bridge pipeline, the Mariner East 2, the Revolution System, the Rebel II Processing Plant, the Red Bluff pipeline, and the Lone Star Frac V.

Williams Companies

Williams Companies (WMB) expects to spend $3.1 billion on expansion projects by the end of this year. Of its total $3.1 billion growth spending target, $1.7 billion is expected to be spent on the Transco Expansion. Its current guidance is $400 million compared to its previous guidance. The increase is mainly due to the addition of gathering and processing projects.

Williams expects to bring the Atlantic Sunrise online in the second half of 2018. Overall, the company has ~$4.7 billion worth of regulated pipeline projects under execution, including the Northeast Supply Enhancement and Gulf Connector projects, as noted in a recent analyst presentation.

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