Energy Transfer Equity LP said its second-quarter earnings rose
82% on lower costs and expenses, and a boost from a tax benefit
that offset weaker revenue.
Affiliate Energy Transfer Partners LP reported that its profit
rose 39% in the latest quarter.
Investors likely will be scrutinizing the conference call for
any signals regarding ETE's efforts to acquire rival pipeline
operator Williams Cos. in a multibillion tie-up that would give ETE
a vastly expanded footprint.
Williams in June rejected ETE's unsolicited offer initially
valued at $48 billion. Williams said the offer significantly
undervalued the company, setting the stage for a potential bidding
contest.
Companies that own pipelines and other energy infrastructure
have been somewhat insulated from the dramatic drop in the price of
oil and gas over the past year. That is because they tend to
operate based on fixed-fee, long-term contracts that pay the same
amount of money whether energy prices are high or low.
Overall, ETE reported a profit of $298 million, or 28 cents a
common unit, up from $164 million, or 15 cents a unit, a year
earlier. The latest period included a tax benefit of $56 million.
Revenue decreased 18% to $11.59 billion.
Analysts polled by Thomson Reuters expected per-unit profit of
27 cents and revenue of $14.37 billion.
Total costs and expenses declined 20%.
Pipeline operator ETP reported a profit of $654 million, up from
$471 million a year earlier. On a per-unit basis, which reflects
general partner and other interests, the company's earnings fell to
67 cents to 92 cents.
Revenue decreased 18% to $11.54 billion.
Analysts polled by Thomson Reuters expected per-unit profit of
48 cents and revenue of $12.98 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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