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About Energy Transfer LP

Energy Transfer LP (ET) transfers natural gas and other energy resources through its massive network of US-based pipelines. The company's operations occur primarily through primary subsidiary Energy Transfer Operating, LP (ETO) and Sunoco LP, although it has interests in a number of LPs and other subsidiaries. The company operates pipelines that transport natural gas, natural gas liquids, refined products, crude oil and Liquefied Natural Gas(LNG) across the US. It also owns and operates associated terminalling, storage, and fractionation facilities. Energy Transfer LP generates about 30% of revenue through a controlling stake in Sunoco LP. In 2019, the company agreed to acquire SemGroup Corporation for $5 billion.

Operations

Energy Transfer's revenue streams are its crude oil transportation and services; investment in Sunoco LP; the transportation of NGL and refined products; midstream services; interstate transportation and storage; intrastate transportation and storage; and its investment in USAC.

Energy Transfer's crude oil transportation and services provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, Midwest and northeastern US. The company owns and operates more than 10,000miles of trunk and gathering pipelines in the southwest and Midwest in the US. The segment accounts for more than 30% of sales.

Energy Transfer's investment in Sunoco LP brings in nearly 30% of revenue. Sunoco LP is a fuel distributor to third-party dealers and distributors, fuel traders, and other commercial customers. It also supplies some 5,400 Sunoco-branded or third-party-branded gas stations, all operated by third parties. Sunoco also operates 75 retail stores in Hawaii and New Jersey.

The NGL (natural gas liquids) and Refined Products Transportation and Services segment represents around a fifth of sales. It owns some 4,500 miles of NGL pipelines, fractionation facilities; a NGL storage facility in Mont Belvieu; and other NGL storage assets.

Energy Transfer's Midstream Segment generates 10% of annual sales. It owns natural gas gathering, compression, treating, processing, storage, and transportation assets.

The Interstate Transportation and Storage segment connects natural gas suppliers with industrial end users and other pipelines via storage facilities and gathering systems. It owns and operates approximately 12,500 miles of interstate natural gas pipelines and another approximately 6,770 miles through joint venture interests. The segment accounts for almost 20% of sales.

The Intrastate Transportation and Storage segment has similar operations to the above, contained within Texas. It owns and operates 9,400 miles of pipeline and three natural gas storage facilities. The segment accounts for about 10% of sales.

USAC provides compression services. This segment generates the remainder of the company's revenue.

Geographic Reach

Based in Dallas, TX, Energy Transfer operates entirely within the US. It has significant operations in Texas, Louisiana, Oklahoma, West Virginia, Pennsylvania, and New York. Its pipelines reach as far as North Dakota, Arizona, and Idaho.

The Sunoco LP subsidiary is headquartered in Philadelphia, PA.

Sales and Marketing

Energy Transfer's customers include petrochemical companies, commercial and industrial end-users, oil and gas producers, municipalities, gas and electric utilities, midstream companies, and independent power generators.

Sunoco supplies approximately 5,474 gas stations, some Sunoco-brands and some under third-party brands, such as Chevron, Exon, and Valero. Sunoco is Chevron's largest fuel supplier.

Financial Performance

Except in 2016, Energy Transfer's sales have been rising.

In 2019 Energy Transfer's revenue grew less than 1% to $54.2 billion due mainly to higher prices.

Net income attributable to partners grew 112% to $3.6 billion.

Energy Transfer's cash on hand decreased $128 million during 2019, ending the year at $291 million. The company's operating activities generated $8 billion, partially offset by $6.9 billion used in investing activities and $1.2 billion used in its financing.

Strategy

Energy Transfer has engaged, and will continue to engage, in a well-balanced plan for growth through strategic acquisitions, internally generated expansion, measures aimed at increasing the profitability of existing assets and executing cost control measures where appropriate to manage operations.

The company intends to continue to operate as a diversified, growth-oriented limited partnership. The company believes that by pursuing independent operating and growth strategies Energy Transfer will be best positioned to achieve its objectives. The company balance its desire for growth with goal of preserving a strong balance sheet, ample liquidity and investment grade credit metrics.

Following is a summary of the business strategies of its core businesses:

Growth through acquisitions. Energy Transfer intends to continue to make strategic acquisitions that offer the opportunity for operational efficiencies and the potential for increased utilization and expansion of existing assets while supporting investment grade credit ratings.

Engage in construction and expansion opportunities. The company intends to leverage existing infrastructure and customer relationships by constructing and expanding systems to meet new or increased demand for midstream and transportation services.

Increase cash flow from fee-based businesses. Energy Transfer intends to increase the percentage of business conducted with third parties under fee-based arrangements in order to provide for stable, consistent cash flows over long contract periods while reducing exposure to changes in commodity prices.

Enhance profitability of existing assets. The company intends to increase the profitability of existing asset base by adding new volumes under long-term producer commitments, undertaking additional initiatives to enhance utilization and reducing costs by improving operations.

Mergers and Acquisitions

In late 2019, Energy Transfer acquired fellow pipeline and energy infrastructure firm SemGroup Corporation in a transaction valued at about $5 billion. Its headquarters is located in Oklahoma, US. The deal enhances Energy Transfer's midstream infrastructure connectivity, increases the company's crude oil and natural gas liquids (NGL) infrastructure, and adds direct pipelines to the Houston Ship Channel and the Nederland Terminal. SemGroup Corporation provides gathering, transportation, storage, distribution, marketing and other midstream services primarily to producers, refiners of petroleum products and other market participants located in the Gulf Coast, Midwest and Rocky Mountain regions of the United States of America and Canada.

Company Background

In 2012 Energy Transfer Equity bought diversified gas player Southern Union for $9.4 billion (including $3.7 billion in debt). The acquisition made Energy Transfer Equity one of the largest natural gas infrastructure companies in the US.

That year the company also completed a $2 billion merger of a wholly owned Energy Transfer Partners subsidiary with and into Southern Union subsidiary CrossCountry Energy, LLC, which owns an indirect 50% interest in Citrus Corp., the owner of the Florida Gas Transmission pipeline system. After the merger, CrossCountry Energy remained as the surviving entity, a wholly owned subsidiary of Energy Transfer Partners.

In 2010 Energy Transfer Equity acquired the general partner stake of Regency Energy Partners and sold a 49.9% stake in its Midcontinent Express Pipeline to that company. The move was seen as a way for the company to diversify its general partner operations with the aim of getting a better return for shareholders. Regency Energy Partners focuses on the gathering, processing, marketing, and transportation of natural gas and natural gas liquids in Arkansas, Kansas, Louisiana, and Texas.

Energy Transfer Equity was formed in 2002 as La Grange Energy, a Texas limited partnership. In early 2005 it changed its name to Energy Transfer Company. In August 2005 it converted from a Texas limited partnership to a Delaware limited partnership and became Energy Transfer Equity.

Energy Transfer LP

8111 Westchester Dr STE 600
Dallas, TX 75225-6142
Phone: 1 (214) 981-0700

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: ET
Stock Exchange: , NYSE
CFO: Thomas E. Long
EVP and General Counsel: Thomas P. Mason
President: John W. McReynolds
Employees (This Location): 132
Employees (All Locations): 12,812

Major Office Locations

Dallas, TX

Other Locations

Cullman, AL
Decatur, AL
Huntsville, AL
Selma, AL
Flagstaff, AZ
Mohave Valley, AZ
Window Rock, AZ
Winslow, AZ
Durango, CO
Grand Junction, CO
Bonita Springs, FL
Brooksville, FL
Bushnell, FL
Clearwater, FL
Clermont, FL
Cocoa, FL
Cocoa Beach, FL
Delray Beach, FL
Englewood, FL
Florida City, FL
Fort Myers, FL
Fort Pierce, FL
Gainesville, FL
Homestead, FL
Jacksonville, FL
Jupiter, FL
Lady Lake, FL
Lakeland, FL
Lake Worth, FL
Largo, FL
Mangonia Park, FL
Melbourne, FL
Merritt Island, FL
Miramar, FL
Naples, FL
Nokomis, FL
Ocala, FL
Okeechobee, FL
Orlando, FL
Palm City, FL
Pompano Beach, FL
Port Charlotte, FL
Port Saint Lucie, FL
Rockledge, FL
Saint Petersburg, FL
Sanford, FL
Sarasota, FL
Sebastian, FL
Stuart, FL
Tampa, FL
Titusville, FL
Vero Beach, FL
West Palm Beach, FL
Wildwood, FL
Winter Haven, FL
Winter Park, FL
Zephyrhills, FL
Acworth, GA
Atlanta, GA
Augusta, GA
Byron, GA
Calhoun, GA
Conley, GA
Jonesboro, GA
Kennesaw, GA
Lithonia, GA
Macon, GA
Perry, GA
Smyrna, GA
Stone Mountain, GA
Tucker, GA
Warner Robins, GA
Galesburg, IL
Johnsonville, IL
Kewanee, IL
Marion, IL
Pleasant Hill, IL
Springfield, IL
Tuscola, IL
Waverly, IL
West Frankfort, IL
Ambia, IN
Fort Wayne, IN
Indianapolis, IN
Knox, IN
Monroeville, IN
Montezuma, IN
Greensburg, KS
Haven, KS
Lawrence, KS
Liberal, KS
Louisburg, KS
Meade, KS
Olpe, KS
Overland Park, KS
Satanta, KS
Burlington, KY
Bastrop, LA
Baton Rouge, LA
Bossier City, LA
Centerville, LA
Epps, LA
Erath, LA
Haynesville, LA
Houma, LA
Lake Charles, LA
Longville, LA
New Iberia, LA
Patterson, LA
Pollock, LA
Beverly, MA
Boston, MA
Cambridge, MA
Fall River, MA
Foxboro, MA
Mansfield, MA
Nantucket, MA
North Attleboro, MA
Revere, MA
Salem, MA
Tewksbury, MA
Wayland, MA
West Springfield, MA
Baltimore, MD
Howell, MI
Jackson, MI
Lambertville, MI
Taylor, MI
Waterford, MI
Centralia, MO
Grandview, MO
Hannibal, MO
Independence, MO
Kirksville, MO
La Monte, MO
Monett, MO
Neosho, MO
Saint Joseph, MO
Warrensburg, MO
Oxford, MS
Rolling Fork, MS
Schlater, MS
Shaw, MS
Charlotte, NC
Durham, NC
Fayetteville, NC
Gastonia, NC
Lillington, NC
Mebane, NC
Reidsville, NC
Shallotte, NC
Williamston, NC
Cedarville, NJ
Egg Harbor Township, NJ
Millville, NJ
Monroe Township, NJ
Mount Laurel, NJ
Penns Grove, NJ
Rutherford, NJ
Westville, NJ
Albuquerque, NM
Bloomfield, NM
Carlsbad, NM
Gallup, NM
Jal, NM
Laguna, NM
Los Lunas, NM
Mountainair, NM
Portales, NM
Roswell, NM
Taos, NM
Las Vegas, NV
Albany, NY
Clayton, NY
Corning, NY
Honeoye Falls, NY
Lawrence, NY
Newark, NY
New Hartford, NY
Niagara Falls, NY
Penn Yan, NY
Rochester, NY
Warners, NY
Akron, OH
Blue Ash, OH
Cleveland, OH
Columbus, OH
Cygnet, OH
Dayton, OH
Haverhill, OH
Holland, OH
Lima, OH
Maumee, OH
Oregon, OH
Powell, OH
Swanton, OH
Altus, OK
Alva, OK
Ardmore, OK
Cashion, OK
Chickasha, OK
Del City, OK
Duncan, OK
Enid, OK
Okmulgee, OK
Seminole, OK
Tulsa, OK
Allentown, PA
Annville, PA
Bridgeville, PA
Coraopolis, PA
Delmont, PA
Exeter, PA
Harrisburg, PA
Hatboro, PA
Hershey, PA
Hopewell, PA
Latrobe, PA
Lock Haven, PA
Marcus Hook, PA
Middleburg, PA
Middletown, PA
Mill Hall, PA
Milton, PA
Montoursville, PA
Northumberland, PA
Oxford, PA
Philadelphia, PA
Phoenixville, PA
Pittsburgh, PA
Reading, PA
Rebersburg, PA
Sharon Hill, PA
Somerset, PA
Wayne, PA
Whitehall, PA
Williamsport, PA
Riverside, RI
West Warwick, RI
Aiken, SC
Blacksburg, SC
Charleston, SC
Columbia, SC
Dillon, SC
Goose Creek, SC
Greenville, SC
Greenwood, SC
Hardeeville, SC
Hartsville, SC
Hilton Head Island, SC
Ladson, SC
Moncks Corner, SC
Mount Pleasant, SC
North Charleston, SC
Orangeburg, SC
Piedmont, SC
Rock Hill, SC
Spartanburg, SC
Summerville, SC
Townville, SC
Walterboro, SC
Dyersburg, TN
Greeneville, TN
Hornsby, TN
Jefferson City, TN
Johnson City, TN
Lenoir City, TN
Madison, TN
Maryville, TN
Morristown, TN
Nashville, TN
New Johnsonville, TN
New Tazewell, TN
Tullahoma, TN
Alice, TX
Barstow, TX
Bay City, TX
Beaumont, TX
Beeville, TX
Bryan, TX
Cleburne, TX
Comfort, TX
Corpus Christi, TX
Cypress, TX
Dallas, TX
Dawn, TX
Eagle Pass, TX
Edna, TX
Franklin, TX
George West, TX
Gonzales, TX
Harlingen, TX
Hawley, TX
Hearne, TX
Houston, TX
Jacksonville, TX
Karnes City, TX
Kermit, TX
La Grange, TX
Laredo, TX
League City, TX
Liberty, TX
Longview, TX
Lumberton, TX
Mansfield, TX
Maypearl, TX
Mercedes, TX
Midland, TX
Monahans, TX
Nederland, TX
Odessa, TX
Pampa, TX
Pasadena, TX
Pearland, TX
Pecos, TX
Pharr, TX
Pleasanton, TX
Port Arthur, TX
Robstown, TX
Round Rock, TX
San Antonio, TX
Sanger, TX
Sour Lake, TX
Sugar Land, TX
Tennessee Colony, TX
Victoria, TX
Wharton, TX
Yoakum, TX
Zapata, TX
Kent, WA
Beckley, WV
Kenova, WV
Wayne, WV