Energy Transfer Partners CEO Kelcy Warren said Thursday he "just didn't see" Donald Trump winning the race for president, but now that he has, there's not much to complain about.
"I'm stunned by the events of the yesterday, and that's not to get into politics with anybody. I just didn't see this coming," Warren said at the end of an earnings conference call Thursday. "We find ourselves, I believe, in a really good position, other than Donald Trump has been very pro 'put the coal miners back to work,' and let's face it, the natural gas industry has benefited from a policy of putting them out of work. So there's some things that aren't great, I guess, for the natural gas side of things, possibly."
Warren might not have seen it coming, but according to reports, he supported the Trump campaign. Trump also is an investor in Energy Transfer.
“Financial disclosures have shown that Trump has invested in the operator, Energy Transfer Partners, and that its CEO contributed to his campaign, though it is customary for sitting presidents’ assets to be held in a blind trust,” Global Data analyst Will Scargil said in a note published Wednesday.
According to a report in The Guardian newspaper, Trump has between $500,000 and $1 million invested in Energy Transfer Partners (ETP) and also has $500,000-1 million invested in Phillips 66, a stakeholder in Energy Transfer’s Dakota Access Pipeline.
"...I think overall, having a government that actually backs up what they say, that actually says, 'we're gonna support infrastructure; we're gonna support job creation; we're gonna support growth in America' -- and then actually does it. My god, this is going to be refreshing," Warren said.
Both ETP and Energy Transfer Equity (ETE) saw healthy gains in trading Wednesday following news of Trump's win. ETE was up 17%, and ETP was up 11%. Investors are looking for regulatory progress on Energy Transfer projects Dakota Access Pipeline and Rover Pipeline and expect that to come from a more energy-friendly Trump administration.
"...I'm very, very enthusiastic about what's going to happen with our country, very enthusiastic..." Warren said.
ETP reported third quarter net income of $138 million, a decrease of $255 million compared to the year-ago quarter, primarily due to a $308 million non-cash impairment of the partnership's investment in the Midcontinent Express Pipeline.
ETE reported net income of $209 million compared to $293 million in the year-ago quarter. DCF, as adjusted, was $281 million compared to $325 million for the year-ago quarter. The decreases in net income and DCF, as adjusted, were primarily driven by an $85 million reduction in incentive distributions from ETP.