U.S. Energy Transfer reports profit due to Winter Storm Uri

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NEW YORK, Aug. 3 -- Energy Transfer LP reported an increase in monthly net income on Tuesday, driven by gains in its intrastate natural gas pipeline and storage business as well as in its intrastate natural gas liquids unit.

Energy Transfer was among the biggest winners after Great Winter Storm Uri shut down power in Texas in February and knocked out natural gas distribution in Texas in February. The company had said it estimated to gain roughly $2.4 billion due to the storm.

In the second quarter, adjusted earnings in the intrastate transportation segment climbed 20% as the company won $52 million of fees due to revenue of $39 million related to Winter Storm Uri.

Energy Transfer said it began operations on its Cushing expansion project in June, which utilizes a crude oil pipeline previously servicing the Permian basin of Texas and New Mexico, the largest U.S. shale producing region.

The new service provides connectivity to transport crude from the Colorado-Julesburg Basin and Cushing, Oklahoma to ET's New Dederland, Texas terminal.

We are now capable of transporting approximately 65,000 barrels of oil per day from the DJ Basin and Cushing area to Nederland, and we are seeing a steady growth in volumes, co-CEO Thomas Long said at the earnings call.

The company is moving forward with a Phase 2 to increase capacity to 120 000 bpd, expected to be in service in the first quarter of 2022.

In May, a U.S. federal court judge denied a request from Native Americans to close the Dakota Access oil pipeline in the United States states of Alaska and other states. On Tuesday, Energy Transfer announced the planned expansion has been placed in service and the system now has capacity of about 750,000 bpd.

In August, nominations on the pipeline system have increased significantly, says co-CEO Marshall McCrea.

Overall net income attributable to partners for the three months ending June 30th, 2021 was $626 million, up $273 million from a year earlier.