U.S. gas services company Energy Transfer generated massive earnings over the first quarter of this year stemming from the deadly winter storm that paralyzed most of Texas in February.
In its first-quarter earnings report, the company said it generated an additional $2.4 billion in earnings.
The Dallas-based gas and propane pipeline transport service provider said it generated a total of $3.6 billion in profit for the first quarter - several times larger than the profits it generated over the same period last year.
For its first quarter, the company reported a 46% year-on-year increase in revenue to $17 billion. According to Factset, the figure is the largest quarterly sales reported by the company since it was founded.
On the heels of its stellar first-quarter performance, Energy Transfer upgraded its full-year earnings guidance to $13.3 billion from its previous $11 billion forecast.
In late February, Energy Transfer's Co-Chief Executive Officer Marshall McCrea hinted at the massive gains tied to the freeze. McCrea told investors during a conference that the company had done "exceptionally well" during the crisis as demand for gas skyrocketed.
Analysts said Energy Transfer greatly benefited from the surge in gas prices during the Texas freeze when power plants and other suppliers were forced to shut down operations. The brutal winter storm caused widespread blackouts that cut Texas' natural gas production by more than a third of its normal levels.
According to data from Natural Gas Intelligence, natural gas prices in Houston surged by nearly $400 per million British thermal units - a twelve-fold increase - during the weeklong storm.
Following the winter storm, Energy Transfer was sued by CPS Energy for overcharging. CPS Energy said the price the company was charging was too much. Energy Transfer rejected the claims.
Energy Transfer operates pipelines and related infrastructure across 38 states in the U.S. and some parts of Canada. Apart from the company, other natural gas suppliers such as Kinder Morgan, BP, and Macquarie Group also reported massive profit increases linked to the Texas freeze.
