星期二, 17 6 月, 2025
Home PV News Energy Profit Falls on Texas Pipelines and Propane

Energy Profit Falls on Texas Pipelines and Propane

Energy Transfer Partners LP (ETP), whose parent is buying Southern Union Co. (SUG) for $5.4 billion, said fourth-quarter profit dropped 28 percent because of lower earnings at its propane unit and natural-gas pipelines in Texas.


Net income fell to $91.87 million, or 41 cents per share, from $126.8 million, or 61 cents, in the fourth quarter of 2010, the company said in a statement yesterday. The earnings were 20 cents lower than the average of four analysts’ estimates compiled by Bloomberg.


Energy Transfer said a warm winter caused earnings before interest, taxes, deductions and amortization at its retail propane business to fall to $71.3 million from $94.4 million.


Energy Transfer, based in Dallas, sold its retail propane business in January to AmeriGas Partners LP (APU) for $2.78 billion in cash and partnership units.
EBITDA also fell at Energy Transfer’s intrastate pipeline business, which transports gas in Texas, while rising at its interstate and midstream units.


Energy Transfer’s parent, Energy Transfer Equity LP (ETE), is buying Southern Union for $44.25 in cash and partnership units. Chief Executive Officer Kelcy Warren has said the purchase will shift the company’s focus to the interstate business. The deal is scheduled to close by March 31.


The Texas intrastate results were slightly worse than projected, underscoring the need for the Southern Union transaction, John Cusick, an analyst with Wunderlich Securities Inc. in New York, said in an interview.


“The interstate looks to be the better part of the business now and hopefully going forward,” said Cusick. He rates Energy Transfer a “hold” and owns none of its partnership units.


The earnings were released after the close of trading. Energy Transfer Partners rose 1.6 percent to $48.27 at the close yesterday in New York.

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