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Last year was brutal for the oil market. The COVID-19 outbreak cratered demand, which impacted the volumes flowing through the country’s midstream systems. That affected midstream giant Energy Transfer (NYSE: ET) , which was evident in its fourth-quarter results. Drilling down into Energy Transfer’s fourth-quarter earnings Data source: Energy Transfer. Earnings dipped during the fourth quarter, pulling down full-year results. Overall, adjusted EBITDA slumped 5.5% in 2020, while DCF declined by 8.1%. That weakness forced the master limited partnership ( MLP ) to reduce its distribution, freeing up the associated cash flow to finance expansion projects and reduce debt. While the company’s diversification and relatively stable business model helped cushion the blow during the fourth quarter, several of its business segments were under pressure during the period: Data source: Energy Transfer. Energy Transfer’s crude-oil transportation and services business was the biggest weak spot. Earnings slumped 23.5% during the period. The primary issue was lower volume on its Texas and Bakken pipeline systems. Also, due to lower oil prices, the company didn’t make as much money on the spread between the price it could buy oil in production basins and sell it into market centers. Energy Transfer’s natural gas liquids […]
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