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Energy Transfer LP

For the period ended Sep 30, 2024. Filed Nov 7, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Nov 7, 2024

ET$19.09+0.9%Stored close · as of Nov 9, 2026

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13. Reportable Segments

  1. REPORTABLE SEGMENTS

Our reportable segments, which conduct their business primarily in the United States, are as follows:

intrastate transportation and storage;

interstate transportation and storage;

midstream;

NGL and refined products transportation and services;

crude oil transportation and services;

investment in Sunoco LP;

investment in USAC; and

all other.

Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our interstate transportation and storage segment are primarily reflected in gathering, transportation and other fees. Revenues from our midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our NGL and refined products transportation and services segment are primarily reflected in NGL sales and gathering, transportation and other fees. Revenues from our crude oil transportation and services segment are primarily reflected in crude sales. Revenues from our investment in Sunoco LP segment are primarily reflected in refined product sales and, subsequent to Sunoco LP’s acquisition of NuStar in May 2024, also in gathering, transportation and other fees. Revenues from our investment in USAC segment are primarily reflected in gathering, transportation and other fees. Revenues from our all other segment are primarily reflected in natural gas sales and gathering, transportation and other fees.

We report Segment Adjusted EBITDA and consolidated Adjusted EBITDA as measures of segment performance. We define Segment Adjusted EBITDA and consolidated Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items, as well as certain non-recurring gains and losses. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent only the changes in lower of cost or market reserves on inventory that is carried at LIFO. These amounts are unrealized valuation adjustments applied to Sunoco LP’s fuel volumes remaining in inventory at the end of the period.

Segment Adjusted EBITDA and consolidated Adjusted EBITDA reflect amounts for unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA and consolidated Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Segment Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly.

The following tables present financial information by segment:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,
2024202320242023
Revenues:
Intrastate transportation and storage:
Revenues from external customers$622$880$2,010$2,424
Intersegment revenues5693223646
6789732,2333,070
Interstate transportation and storage:
Revenues from external customers5685621,6761,720
Intersegment revenues792035
5755711,6961,755
Midstream:
Revenues from external customers1,0647752,6462,370
Intersegment revenues1,6942,0025,3935,629
2,7582,7778,0397,999
NGL and refined products transportation and services:
Revenues from external customers5,0174,36915,59813,210
Intersegment revenues8368912,5762,654
5,8535,26018,17415,864
Crude oil transportation and services:
Revenues from external customers7,2947,28922,29419,321
Intersegment revenues15—251
7,3097,28922,31919,322
Investment in Sunoco LP:
Revenues from external customers5,7386,31717,40617,395
Intersegment revenues1331832
5,7516,32017,42417,427
Investment in USAC:
Revenues from external customers227212680605
Intersegment revenues1352516
240217705621
All other:
Revenues from external customers2423358201,009
Intersegment revenues137109320378
3794441,1401,387
Eliminations(2,771)(3,112)(8,600)(9,391)
Total revenues$20,772$20,739$63,130$58,054
Three Months EndedSeptember 30,Nine Months EndedSeptember 30,
2024202320242023
Segment Adjusted EBITDA:
Intrastate transportation and storage$329$244$1,095$869
Interstate transportation and storage4604911,3351,468
Midstream8166312,2051,851
NGL and refined products transportation and services1,0121,0763,0712,852
Crude oil transportation and services7687062,4171,906
Investment in Sunoco LP4562571,018728
Investment in USAC146130429373
All other(28)62949
Adjusted EBITDA (consolidated)$3,959$3,541$11,599$10,096
Three Months EndedSeptember 30,Nine Months EndedSeptember 30,
2024202320242023
Reconciliation of net income to Adjusted EBITDA:
Net income$1,434$1,047$5,118$3,727
Depreciation, depletion and amortization1,3241,1073,7913,227
Interest expense, net of interest capitalized8286322,3181,892
Income tax expense8977405256
Impairment losses—15012
(Gain) loss on interest rate derivatives6(32)(6)(47)
Non-cash compensation expense373511399
Unrealized (gain) loss on commodity risk management activities(53)10750182
Inventory valuation adjustments (Sunoco LP)197(141)99(113)
Loss on extinguishment of debt——11—
Adjusted EBITDA related to unconsolidated affiliates181182522514
Equity in earnings of unconsolidated affiliates(102)(103)(285)(286)
Non-operating litigation-related loss—625—625
Gain on sale of West Texas assets (Sunoco LP)——(598)—
Other, net184118
Adjusted EBITDA (consolidated)$3,959$3,541$11,599$10,096
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