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The Final Stretch: Energy Transfer Pushes For Mariner East Project Ahead Of The Stunning Q3 Results

A market share of almost 20%, double that of 18 months ago, was held by Energy Transfer LP in the third quarter, the most of any country or company in the world in NGL exports. The company, however, has a bit of a slip in the results, compared to the strong showing over the same period a year prior.

In 2020, consolidated adjusted EBITDA in the third quarter was $2.9 billion, compared to $2.6 billion this time around. In line with this, discounted cash flow (DCF) is also down to $1.31 billion, from $1.69 billion a year ago.

Energy Transfer also reported earnings of $0.20 per unit and revenues of $16.66 billion, which solidly outperformed expectations from the likes of the Zacks Consensus with their estimate of $14.96 billion.

Tom Long, co-CEO of Energy, noted that the company was able to tie itself over the higher volumes in most segments seamlessly this year due to the one-time gain of $103 million in the midstream segment and the success of the former optimizations. Long also noted that the winter storm of 2021 resulted in higher utility bills and other expenditures.

All of these gains and expenses — the result of Energy Transfer owning and operating one of the largest and most diversified portfolios of energy assets in the United States, with strategic stakes in all major domestic production basins. All of this is in addition to midstream, intrastate, and interstate natural gas transportation and storage assets, oil and petroleum products transportation and terminal assets, NGL fractionation assets, and acquisition and marketing assets.

In the meantime, though, one of the heaviest things on Energy's plate is the Mariner East project with its myriad of challenges. A new phase in the project has been commissioned, which will increase the project's capacity to 260,000 bbl/d. Yet, even with the uncompleted project, the volumes going through the system and the terminal in Marcus Hook, Pa saw a 12% increase compared to the last year.

However, the project is handicapped at the moment. New permit modifications are required for converting the final directional drill to an open cut. Afterward, Mariner East's last segment could be operational by the end of the first half of 2022. But whether or not this timeline will hold to be true is unknown for now.

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Smart Investments Are The Key To Success: Williams JV Brought Benefits At The End Of The Year

Williams boasts its Q3 results. With a revenue of $2.48 billion, the company beat the analyst estimate of $2.09 billion and also improved upon its own results over the same period in 2020. Mind you, much of this success was attributed to production in Wyoming's Green River Basin's Wamsutter Field and Williams JV with Crowheart.

Permian Basins gas infrastructure boom: Summit Midstream puts into service a new pipeline system, aimed at reducing gas flaring in the area. Besides ecological concerns, the project will also transport almost 1,5 billion cubic feet of gas per day — enough to supply 5 million U.S. homes every day. According to Federal Energy Statistics, the project cost a whopping $450 million.

Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.

The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.

No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.

2022 blog posts