February 21, 2018, by Meenal Vamburkar
Kelcy Warren’s pipeline business had a massive profit last year, thanks largely to President Donald Trump.
Approval of the controversial Dakota Access pipeline and gains from the U.S. tax overhaul helped the billionaire’s Energy Transfer Partners LP more than quadruple net income to $2.5 billion last year, according to an earnings report Wednesday.
Operating more than 70,000 miles of oil and gas pipelines, Energy Transfer is one of the heavyweights in the industry. Its pipeline shipping crude from the Bakken shale in North Dakota to Illinois went into service the second quarter of last year after spurring nationwide protests. The line, which had been halted by the Obama administration, added $247 million to earnings in the fourth quarter, the Dallas-based company said in a statement Wednesday.
At the same time, tax law benefits were the primary driver of net income in the quarter. Excluding one-time items, the per-share profit in the period was 57 cents, topping the highest analyst estimate compiled by Bloomberg of 49 cents.
The shares jumped as much as 4.7 percent to $19.10 after regular trading hours in New York. They closed at $18.24 on Wednesday.