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Share Name | Share Symbol | Market | Type |
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Sunoco LP | NYSE:SUN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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-0.36 | -0.65% | 54.94 | 56.17 | 55.32 | 55.68 | 613,216 | 01:00:00 |
Energy Transfer LP (NYSE:ET) (“ET” or the “Partnership”) today reported financial results for the quarter and year ended December 31, 2018.
ET reported net income attributable to partners for the three months ended December 31, 2018 of $617 million, an increase of $366 million compared to the three months ended December 31, 2017. For the prior period, net income attributable to partners continues to reflect only the amount of net income attributable to the legacy ETE partners prior to the Merger, as discussed below.
Adjusted EBITDA for the three months ended December 31, 2018 was $2.67 billion, an increase of $592 million compared to the three months ended December 31, 2017. Results were supported by increases in all of the Partnership’s core operations, with record operating performance in ET’s NGL, interstate and intrastate businesses.
On a pro forma basis for the Merger, Distributable Cash Flow attributable to partners, as adjusted, for the three months ended December 31, 2018 was a record $1.52 billion, an increase of $338 million compared to the three months ended December 31, 2017. The increase was primarily due to the increase in Adjusted EBITDA.
Key accomplishments and current developments:
Strategic
Operational
Financial
Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnership’s multiple segments generate high-quality, balanced earnings with no single segment contributing more than a quarter of the Partnership’s consolidated Adjusted EBITDA in 2018. The great majority of the Partnership’s segment margins are fee-based and therefore have limited commodity price sensitivity.
Conference call information:
The Partnership has scheduled a conference call for 8:00 a.m. Central Time, Thursday, February 21, 2019 to discuss its fourth quarter 2018 results. The conference call will be broadcast live via an internet webcast, which can be accessed through www.energytransfer.com and will also be available for replay on the Partnership’s website for a limited time.
Subsequent to the Merger, substantially all of the Partnership’s cash flows are derived from distributions related to its investment in ETO, whose cash flows are derived from its subsidiaries, including ETO’s investments in the limited and general partner interests in Sunoco LP and USA Compression Partners LP (“USAC”), as well as its ownership of Lake Charles LNG Company, LLC (“Lake Charles LNG”).
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major U.S. production basins, ET is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. ET, through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, L.P., also owns the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN), and the general partner interests and 39.7 million common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN’s general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET). For more information, visit the Sunoco LP website at www.sunocolp.com.
USA Compression Partners, LP (NYSE: USAC) is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of compression services in terms of total compression fleet horsepower. USAC partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas and crude oil. USAC focuses on providing compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities and transportation applications. For more information, visit the USAC website at www.usacompression.com.
Forward-Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.energytransfer.com.
ENERGY TRANSFER LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions) (unaudited)December 31,2018
December 31,2017
ASSETS Current assets $ 6,750 $ 10,683 Property, plant and equipment, net 66,963 61,088 Advances to and investments in unconsolidated affiliates 2,642 2,705 Other non-current assets, net 1,006 886 Intangible assets, net 6,000 6,116 Goodwill 4,885 4,768 Total assets $ 88,246 $ 86,246 LIABILITIES AND EQUITY Current liabilities $ 9,310 $ 7,897 Long-term debt, less current maturities 43,373 43,671 Non-current derivative liabilities 104 145 Deferred income taxes 2,926 3,315 Other non-current liabilities 1,184 1,217 Commitments and contingencies Redeemable noncontrolling interests 499 21 Equity: Total partners’ capital (deficit) 20,559 (1,196 ) Noncontrolling interest 10,291 31,176 Total equity 30,850 29,980 Total liabilities and equity $ 88,246 $ 86,246ENERGY TRANSFER LP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per unit data) (unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2018 2017 2018 2017 REVENUES $ 13,573 $ 11,451 $ 54,087 $ 40,523 COSTS AND EXPENSES: Cost of products sold 9,977 8,721 41,658 30,966 Operating expenses 809 704 3,089 2,644 Depreciation, depletion and amortization 750 677 2,859 2,554 Selling, general and administrative 187 119 702 599 Impairment losses 431 940 431 1,039 Total costs and expenses 12,154 11,161 48,739 37,802 OPERATING INCOME 1,419 290 5,348 2,721 OTHER INCOME (EXPENSE): Interest expense, net of interest capitalized (544 ) (482 ) (2,055 ) (1,922 ) Equity in earnings (losses) of unconsolidated affiliates 86 (84 ) 344 144 Impairment of investment in unconsolidated affiliate — (313 ) — (313 ) Losses on extinguishments of debt (6 ) (64 ) (112 ) (89 ) Gains (losses) on interest rate derivatives (70 ) (9 ) 47 (37 ) Other, net (35 ) 73 62 206 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT) 850 (589 ) 3,634 710 Income tax expense (benefit) from continuing operations (2 ) (1,747 ) 4 (1,833 ) INCOME FROM CONTINUING OPERATIONS 852 1,158 3,630 2,543 Income (loss) from discontinued operations, net of income taxes — 10 (265 ) (177 ) NET INCOME 852 1,168 3,365 2,366 Less: Net income attributable to noncontrolling interest 220 917 1,632 1,412 Less: Net income attributable to redeemable noncontrolling interests 15 — 39 — NET INCOME ATTRIBUTABLE TO PARTNERS 617 251 1,694 954 Convertible Unitholders’ interest in income — 12 33 37 General Partner’s interest in net income — — 3 2 Limited Partners’ interest in net income $ 617 $ 239 $ 1,658 $ 915 NET INCOME PER LIMITED PARTNER UNIT: Basic $ 0.26 $ 0.22 $ 1.16 $ 0.85 Diluted $ 0.26 $ 0.22 $ 1.15 $ 0.83 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING: Basic 2,332.1 1,079.2 1,423.8 1,078.2 Diluted 2,339.4 1,151.5 1,461.4 1,150.8ENERGY TRANSFER LP AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Dollars and units in millions) (unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2018 2017 2018 2017 Reconciliation of net income to Adjusted EBITDA and Distributable Cash Flow (a) (b): Net income $ 852 $ 1,168 $ 3,365 $ 2,366 (Income) loss from discontinued operations — (10 ) 265 177 Interest expense, net 544 482 2,055 1,922 Impairment losses 431 940 431 1,039 Income tax expense (benefit) from continuing operations (2 ) (1,747 ) 4 (1,833 ) Depreciation, depletion and amortization 750 677 2,859 2,554 Non-cash compensation expense 23 23 105 99 (Gains) losses on interest rate derivatives 70 9 (47 ) 37 Unrealized (gains) losses on commodity risk management activities (244 ) (37 ) 11 (59 ) Losses on extinguishments of debt 6 64 112 89 Inventory valuation adjustments 135 (16 ) 85 (24 ) Impairment of investment in an unconsolidated affiliate — 313 — 313 Equity in (earnings) losses of unconsolidated affiliates (86 ) 84 (344 ) (144 ) Adjusted EBITDA related to unconsolidated affiliates 152 162 655 716 Adjusted EBITDA from discontinued operations — 44 (25 ) 223 Other, net 38 (79 ) (21 ) (155 ) Adjusted EBITDA (consolidated) 2,669 2,077 9,510 7,320 Adjusted EBITDA related to unconsolidated affiliates (152 ) (162 ) (655 ) (716 ) Distributable Cash Flow from unconsolidated affiliates 95 102 407 431 Interest expense, net (544 ) (497 ) (2,057 ) (1,958 ) Subsidiary preferred unitholders’ distributions (54 ) (12 ) (170 ) (12 ) Current income tax expense (7 ) (10 ) (472 ) (39 ) Transaction-related income taxes — — 470 — Maintenance capital expenditures (137 ) (157 ) (510 ) (479 ) Other, net 19 5 49 67 Distributable Cash Flow (consolidated) 1,889 1,346 6,572 4,614 Distributable Cash Flow attributable to Sunoco LP (100%) (115 ) (89 ) (446 ) (449 ) Distributions from Sunoco LP 43 68 166 259 Distributable Cash Flow attributable to USAC (100%) (55 ) — (148 ) — Distributions from USAC 21 — 73 — Distributable Cash Flow attributable to PennTex Midstream Partners, LP (“PennTex”) (100%) (c) — — — (19 ) Distributions from PennTex to ETO (c) — — — 8 Distributable Cash Flow attributable to noncontrolling interest in other non-wholly-owned consolidated subsidiaries (294 ) (151 ) (874 ) (350 ) Distributable Cash Flow attributable to the partners of ET – pro forma for the Merger (a) 1,489 1,174 5,343 4,063 Transaction-related expenses 27 4 52 57 Distributable Cash Flow attributable to the partners of ET, as adjusted – pro forma for the Merger (a) $ 1,516 $ 1,178 $ 5,395 $ 4,120 Three Months EndedDecember 31, Year EndedDecember 31, 2018 2017 2018 2017 Distributions to partners – pro forma for the Merger (a): Limited Partners (d) $ 799 $ 708 $ 3,104 $ 2,669 General Partner 1 1 4 4 Total distributions to be paid to partners $ 800 $ 709 $ 3,108 $ 2,673 Common Units outstanding – end of period – pro forma for the Merger (a) 2,619.4 2,532.5 2,619.4 2,532.5 Distribution coverage ratio – pro forma for the Merger (a)(b) 1.90x 1.66x 1.74x 1.54x(a) The closing of the Merger (as discussed above) has impacted the Partnership’s calculation of Distributable Cash Flow attributable to partners, as well as the number of ET Common Units outstanding and the amount of distributions to be paid to partners. In order to provide information on a comparable basis for pre-Merger and post-Merger periods, the Partnership has included certain pro forma information.
Pro forma Distributable Cash Flow attributable to partners reflects the following merger related impacts:
Pro forma distributions to partners include actual distributions to legacy ET partners, as well as pro forma distributions to legacy ETO partners. Pro forma distributions to ETO partners are calculated assuming (i) historical ETO common units converted under the terms of the Merger and (ii) distributions on such converted common units were paid at the historical rate paid on ET Common Units.
Pro forma Common Units outstanding include actual Common Units outstanding, in addition to Common Units assumed to be issued in the Merger, which are based on historical ETO common units converted under the terms of the Merger.
For the year ended December 31, 2017, the calculation of Distributable Cash Flow and the amounts reflected for distributions to partners and common units outstanding also reflect the pro forma impacts of the Sunoco Logistics Merger as though the merger had occurred on January 1, 2017.
(b) Adjusted EBITDA, Distributable Cash Flow and distribution coverage ratio are non-GAAP financial measures used by industry analysts, investors, lenders, and rating agencies to assess the financial performance and the operating results of ET’s fundamental business activities and should not be considered in isolation or as a substitute for net income, income from operations, cash flows from operating activities, or other GAAP measures.
There are material limitations to using measures such as Adjusted EBITDA, Distributable Cash Flow and distribution coverage ratio, including the difficulty associated with using either as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company’s net income or loss or cash flows. In addition, our calculations of Adjusted EBITDA, Distributable Cash Flow and distribution coverage ratio may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measurements that are computed in accordance with GAAP, such as segment margin, operating income, net income, and cash flow from operating activities.
Definition of Adjusted EBITDA
We define 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, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities include unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Adjusted EBITDA reflects amounts for less than wholly-owned subsidiaries based on 100% of the subsidiaries’ results of operations and for unconsolidated affiliates based on our proportionate ownership.
Adjusted EBITDA is used by management to determine our operating performance and, along with other financial and volumetric data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted businesses for acquisition and as a measurement component of incentive compensation.
Definition of Distributable Cash Flow
We define Distributable Cash Flow as net income, adjusted for certain non-cash items, less distributions to preferred unitholders and maintenance capital expenditures. Non-cash items include depreciation, depletion and amortization, non-cash compensation expense, amortization included in interest 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, non-cash impairment charges, losses on extinguishments of debt and deferred income taxes. Unrealized gains and losses on commodity risk management activities includes unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). For unconsolidated affiliates, Distributable Cash Flow reflects the Partnership’s proportionate share of the investee’s distributable cash flow.
Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash, and Distributable Cash Flow is calculated to evaluate our ability to fund distributions through cash generated by our operations.
On a consolidated basis, Distributable Cash Flow includes 100% of the Distributable Cash Flow of ET’s consolidated subsidiaries. However, to the extent that noncontrolling interests exist among our subsidiaries, the Distributable Cash Flow generated by our subsidiaries may not be available to be distributed to our partners. In order to reflect the cash flows available for distributions to our partners, we have reported Distributable Cash Flow attributable to partners, which is calculated by adjusting Distributable Cash Flow (consolidated), as follows:
For Distributable Cash Flow attributable to partners, as adjusted, certain transaction-related and non-recurring expenses that are included in net income are excluded.
Definition of Distribution Coverage Ratio
Distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to the partners of ET in respect of such period.
(c) Beginning with the second quarter of 2017, PennTex became a wholly-owned subsidiary of ETO. The amounts reflected above for PennTex relate only to the first quarter of 2017, and no distributable cash flow has been attributed to noncontrolling interests in PennTex subsequent to March 31, 2017.
(d) Includes distributions to unitholders who elected to participate in a plan to forgo a portion of their future potential cash distributions on common units and reinvest those distributions in ETE Series A convertible preferred units representing limited partner interests in the Partnership. The quarter ended March 31, 2018 was the final quarter of participation in the plan.
ENERGY TRANSFER LP AND SUBSIDIARIES SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT (Tabular dollar amounts in millions) (unaudited)As a result of the Merger in October 2018, our reportable segments were reevaluated and currently reflect the following segments.
Three Months EndedDecember 31, 2018 2017 Segment Adjusted EBITDA: Intrastate transportation and storage $ 306 $ 146 Interstate transportation and storage 479 342 Midstream 402 393 NGL and refined products transportation and services 569 433 Crude oil transportation and services 636 544 Investment in Sunoco LP 180 158 Investment in USAC 104 — All other (7 ) 61 Total Segment Adjusted EBITDA $ 2,669 $ 2,077In the following analysis of segment operating results, a measure of segment margin is reported for segments with sales revenues. Segment Margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment Margin is similar to the GAAP measure of gross margin, except that Segment Margin excludes charges for depreciation, depletion and amortization.
In addition, for certain segments, the sections below include information on the components of Segment Margin by sales type, which components are included in order to provide additional disaggregated information to facilitate the analysis of Segment Margin and Segment Adjusted EBITDA. For example, these components include transportation margin, storage margin, and other margin. These components of Segment Margin are calculated consistent with the calculation of Segment Margin; therefore, these components also exclude charges for depreciation, depletion and amortization.
Following is a reconciliation of Segment Margin to operating income, as reported in the Partnership’s consolidated statements of operations:
Three Months EndedDecember 31, 2018 2017 Segment Margin: Intrastate transportation and storage $ 350 $ 205 Interstate transportation and storage 495 317 Midstream 609 568 NGL and refined products transportation and services 840 582 Crude oil transportation and services 939 683 Investment in Sunoco LP 183 277 Investment in USAC 149 — All other 45 102 Intersegment eliminations (14 ) (4 ) Total segment margin 3,596 2,730 Less: Operating expenses 809 704 Depreciation, depletion and amortization 750 677 Selling, general and administrative 187 119 Impairment losses 431 940 Operating income $ 1,419 $ 290Intrastate Transportation and Storage
Three Months EndedDecember 31, 2018 2017 Natural gas transported (BBtu/d) 11,708 8,944 Revenues $ 1,127 $ 741 Cost of products sold 777 536 Segment margin 350 205 Unrealized (gains) losses on commodity risk management activities 5 (21 ) Operating expenses, excluding non-cash compensation expense (48 ) (44 ) Selling, general and administrative expenses, excluding non-cash compensation expense (7 ) (5 ) Adjusted EBITDA related to unconsolidated affiliates 6 11 Segment Adjusted EBITDA $ 306 $ 146Transported volumes increased primarily due to favorable market pricing spreads, as well as the impact of reflecting Regency Intrastate Gas LP (“RIGS”) as a consolidated subsidiary. RIGS was previously reflected as an unconsolidated affiliate until ETO acquired the remaining interest in April 2018.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment increased due to the net impacts of the following:
Interstate Transportation and Storage
Three Months EndedDecember 31, 2018 2017 Natural gas transported (BBtu/d) 11,062 7,185 Natural gas sold (BBtu/d) 18 18 Revenues $ 495 $ 317 Operating expenses, excluding non-cash compensation, amortization and accretion expenses (120 ) (80 ) Selling, general and administrative expenses, excluding non-cash compensation, amortization and accretion expenses (8 ) (7 ) Adjusted EBITDA related to unconsolidated affiliates 118 115 Other (6 ) (3 ) Segment Adjusted EBITDA $ 479 $ 342Transported volumes reflected an increase of 2,223 BBtu/d as a result of the initiation of service on the Rover pipeline; increases of 506 BBtu/d and 475 BBtu/d on the Panhandle and Trunkline pipelines, respectively, due to increased utilization of higher contracted capacity; an increase of 309 BBtu/d on the Tiger pipeline as a result of production increases in the Haynesville Shale; and an increase of 264 BBtu/d on the Transwestern pipeline as a result of favorable market opportunities in the West, midcontinent, and Waha areas from the Permian supply basin.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our interstate transportation and storage segment increased due to the net impacts of the following:
Midstream
Three Months EndedDecember 31, 2018 2017 Gathered volumes (BBtu/d) 12,827 11,525 NGLs produced (MBbls/d) 558 505 Equity NGLs (MBbls/d) 25 27 Revenues $ 1,781 $ 1,926 Cost of products sold 1,172 1,358 Segment margin 609 568 Unrealized losses on commodity risk management activities — 3 Operating expenses, excluding non-cash compensation expense (193 ) (168 ) Selling, general and administrative expenses, excluding non-cash compensation expense (22 ) (18 ) Adjusted EBITDA related to unconsolidated affiliates 8 8 Segment Adjusted EBITDA $ 402 $ 393Gathered volumes and NGL production increased primarily due to increases in the North Texas, Permian and Northeast regions, partially offset by smaller declines in other regions.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment increased due to the net effects of the following:
NGL and Refined Products Transportation and Services
Three Months EndedDecember 31, 2018 2017 NGL transportation volumes (MBbls/d) 1,115 963 Refined products transportation volumes (MBbls/d) 601 618 NGL and refined products terminal volumes (MBbls/d) 898 792 NGL fractionation volumes (MBbls/d) 594 455 Revenues $ 2,946 $ 2,533 Cost of products sold 2,106 1,951 Segment margin 840 582 Unrealized gains on commodity risk management activities (112 ) (28 ) Operating expenses, excluding non-cash compensation expense (156 ) (120 ) Selling, general and administrative expenses, excluding non-cash compensation expense (22 ) (15 ) Adjusted EBITDA related to unconsolidated affiliates 19 14 Segment Adjusted EBITDA $ 569 $ 433NGL transportation volumes increased primarily due to increased volumes from the Permian region resulting from a ramp up in production from existing customers, higher throughput volumes on Mariner West driven by end user facility constraints in the prior period and higher throughput from Mariner South resulting from increased export volumes. Refined products transportation volumes decreased primarily due to the timing of turnarounds at third-party refineries in the Midwest and Northeast regions.
NGL and refined products terminal volumes increased primarily due to more volumes loaded at our Nederland terminal as export demand increased, as well as higher throughput volumes at our Marcus Hook Industrial Complex.
Average fractionated volumes at our Mont Belvieu, Texas fractionation facility increased primarily due to increased volumes from the Permian region, as well as an increase in fractionation capacity as our fifth fractionator at Mont Belvieu came online in July 2018.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment increased due to net impacts of the following:
Crude Oil Transportation and Services
Three Months EndedDecember 31, 2018 2017 Crude transportation volumes (MBbls/d) 4,330 3,872 Crude terminals volumes (MBbls/d) 2,202 2,059 Revenues $ 4,346 $ 3,938 Cost of products sold 3,407 3,255 Segment margin 939 683 Unrealized (gains) losses on commodity risk management activities (132 ) 4 Operating expenses, excluding non-cash compensation expense (150 ) (125 ) Selling, general and administrative expenses, excluding non-cash compensation expense (22 ) (20 ) Adjusted EBITDA related to unconsolidated affiliates 1 2 Segment Adjusted EBITDA $ 636 $ 544Crude transportation volumes increased due to placing the Bakken pipeline in service in June 2017 as well as higher throughput on existing pipelines due to increased production in West Texas. Crude terminal volumes benefited from an increase in barrels delivered to our Nederland crude terminal from the Bakken pipeline and from increased West Texas production.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our crude oil transportation and services segment increased due to the net impacts of the following:
Investment in Sunoco LP
Three Months EndedDecember 31, 2018 2017 Revenues $ 3,877 $ 2,959 Cost of products sold 3,694 2,682 Segment margin 183 277 Unrealized losses on commodity risk management activities 5 2 Operating expenses, excluding non-cash compensation expense (111 ) (113 ) Selling, general and administrative, excluding non-cash compensation expense (36 ) (36 ) Inventory fair value adjustments 135 (16 ) Adjusted EBITDA from discontinued operations — 44 Other, net 4 — Segment Adjusted EBITDA $ 180 $ 158The Investment in Sunoco LP segment reflects the consolidated results of Sunoco LP.
Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our investment in Sunoco LP increased due to the net impacts of the following:
Investment in USAC
Three Months EndedDecember 31, 2018 2017 Revenues $ 172 $ — Cost of products sold 23 — Segment margin 149 — Operating expenses, excluding non-cash compensation expense (30 ) — Selling, general and administrative, excluding non-cash compensation expense (16 ) — Other, net 1 — Segment Adjusted EBITDA $ 104 $ —Amounts reflected above for the three months ended December 31, 2018 represents the consolidated results of operations for USAC. Changes between periods are due to the consolidation of USAC beginning April 2, 2018.
All Other
Three Months EndedDecember 31, 2018 2017 Revenues $ 630 $ 652 Cost of products sold 585 550 Segment margin 45 102 Unrealized (gains) losses on commodity risk management activities (11 ) 3 Operating expenses, excluding non-cash compensation expense (6 ) (31 ) Selling, general and administrative expenses, excluding non-cash compensation expense (41 ) (28 ) Adjusted EBITDA related to unconsolidated affiliates — 12 Other and eliminations 6 3 Segment Adjusted EBITDA $ (7 ) $ 61Segment Adjusted EBITDA. For the three months ended December 31, 2018 compared to the same period last year, Segment Adjusted EBITDA related to our all other segment decreased due to the net impacts of the following:
ENERGY TRANSFER LP AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION ON LIQUIDITY
(In millions) (unaudited) The following table is a summary of ETO’s revolving credit facilities which incurred certain changes in connection with the Merger. We also have consolidated subsidiaries with revolving credit facilities which are not included. Facility SizeFunds Available atDecember 31, 2018
Maturity Date ETO Five-Year Revolving Credit Facility $ 5,000 $ 1,243 December 1, 2023 ETO 364-Day Revolving Credit Facility 1,000 1,000 November 30, 2019 $ 6,000 $ 2,243ENERGY TRANSFER LP AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION ON UNCONSOLIDATED AFFILIATES
(In millions) (unaudited)The table below provides information on an aggregated basis for our unconsolidated affiliates, which are accounted for as equity method investments in the Partnership’s financial statements for the periods presented.
Three Months EndedDecember 31, 2018 2017 Equity in earnings (losses) of unconsolidated affiliates: Citrus $ 39 $ 58 FEP 14 14 MEP 7 9 HPC (1)(2) — (185 ) Other 26 20 Total equity in earnings (losses) of unconsolidated affiliates $ 86 $ (84 ) Adjusted EBITDA related to unconsolidated affiliates: Citrus $ 81 $ 74 FEP 18 19 MEP 19 22 HPC (2) — 6 Other 34 41 Total Adjusted EBITDA related to unconsolidated affiliates $ 152 $ 162 Distributions received from unconsolidated affiliates: Citrus $ 46 $ 43 FEP 18 19 MEP 8 8 HPC (2) — 13 Other 35 22 Total distributions received from unconsolidated affiliates $ 107 $ 105(1) For the three months ended December 31, 2017, equity in earnings (losses) of unconsolidated affiliates includes the impact of non-cash impairments recorded by HPC, which reduced the Partnership’s equity in earnings by $185 million.
(2) The partnership previously owned a 49.99% interest in HPC, which owns RIGS. In April 2018, we acquired the remaining 50.01% interest in HPC. Prior to April 2018, HPC was reflected as an unconsolidated affiliate in our financial statements; beginning in April 2018, RIGS is reflected as a wholly-owned subsidiary in our financial statements.
ENERGY TRANSFER LP AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION ON NON-WHOLLY-OWNED JOINT VENTURE SUBSIDIARIES
(In millions) (unaudited)The table below provides information on an aggregated basis for our non-wholly-owned joint venture subsidiaries, which are reflected on a consolidated basis in our financial statements. The table below excludes Sunoco LP and USAC, which are non-wholly-owned subsidiaries that are publicly traded.
Three Months EndedDecember 31, 2018 2017 Adjusted EBITDA of non-wholly-owned subsidiaries (100%) (a) $ 669 $ 381 Our proportionate share of Adjusted EBITDA of non-wholly-owned subsidiaries (b) 351 212 Distributable Cash Flow of non-wholly-owned subsidiaries (100%) (c) $ 626 $ 346 Our proportionate share of Distributable Cash Flow of non-wholly-owned subsidiaries (d) 332 194Below is our ownership percentage of certain non-wholly-owned subsidiaries:
Non-wholly-owned subsidiary: ET Percentage Ownership (e) Bakken Pipeline 36.4 % Bayou Bridge 60.0 % Ohio River System 75.0 % Permian Express Partners 87.7 % Rover 32.6 % Others various(a) Adjusted EBITDA of non-wholly-owned subsidiaries reflects the total Adjusted EBITDA of our non-wholly-owned subsidiaries on an aggregated basis. This is the amount of EBITDA included in our consolidated non-GAAP measure of Adjusted EBITDA.
(b) Our proportionate share of Adjusted EBITDA of non-wholly-owned subsidiaries reflects the amount of Adjusted EBITDA of such subsidiaries (on an aggregated basis) that is attributable to our ownership interest.
(c) Distributable Cash Flow of non-wholly-owned subsidiaries reflects the total Distributable Cash Flow of our non-wholly-owned subsidiaries on an aggregated basis.
(d) Our proportionate share of Distributable Cash Flow of non-wholly-owned subsidiaries reflects the amount of Distributable Cash Flow of such subsidiaries (on an aggregated basis) that is attributable to our ownership interest. This is the amount of Distributable Cash Flow included in our consolidated non-GAAP measure of Distributable Cash Flow attributable to the partners of ET.
(e) Our ownership reflects the total economic interest held by us and our subsidiaries. In some cases, this percentage comprises ownership interests held in (or by) multiple entities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190220005885/en/
Energy Transfer
Investor Relations:Bill Baerg, Brent Ratliff, Lyndsay Hannah, 214-981-0795orMedia Relations:Vicki Granado, 214-840-5820
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