Energy Transfer Equity LP said its third-quarter earnings fell 29%, mostly as a result of the company's move to support projects at affiliate Energy Transfer Partners LP by waiving special payments from the master limited partnership.
The move was part of Energy Transfer's plans to expand its sprawling pipeline holdings after it ended its merger agreement with rival pipeline operator Williams Cos.
Energy Transfer Partners also reported lower earnings on a write-down of its investment in the Midcontinent Express Pipeline.
Energy Transfer Equity's common units fell 3.4% to $15.80 in recent after-hours trading.
At the close of trading Wednesday, Energy Transfer's units had risen 17% to $16.35 and Energy Transfer Partner units had increased 11% to $37.08 amid expectations that President-elect Donald Trump will give the green light to the embattled Dakota Access pipeline project. The 1,170-mile pipeline from North Dakota to Texas needs an easement from the Army Corps of Engineers to finish construction, but the plan has come under harsh criticism and federal agencies have said they're reviewing issues raised by the Standing Rock Sioux tribe.
Overall, Energy Transfer Equity reported a profit of $209 million, or 19 cents a common unit, down from $293 million, or 28 cents a unit, a year earlier. Revenue decreased 8.9% to $9.68 billion.
Analysts polled by Thomson Reuters expected per-unit profit of 25 cents and revenue of $9.51 billion.
Overall, Energy Transfer Partners reported a profit of $74 million, down sharply from $417 million, a year earlier. On a per-unit basis, which reflects general partner interests, the company reported a loss of 49 cents, compared with a year-earlier profit of 10 cents. Revenue declined 16% to $5.53 billion.
Analysts polled by Thomson Reuters expected per-share unit of 29 cents and revenue of $6.45 billion.
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(END) Dow Jones Newswires
November 09, 2016 18:05 ET (23:05 GMT)
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