And despite all the acquisitions he’s managed to make, two dramatic oil-industry downturns have pushed down the value of Energy Transfer to less than $6 billion, from a peak of more than $35 billion in 2015.
More recently, Warren has had to defend Energy Transfer’s decision to stand by the MLP model even as its peers adopt more traditional structures following a series of tax changes. He offered a hint that a structural shake-up might not be far off earlier this year, though that was before the coronavirus pandemic upended the oil market.
Dakota Access has also reemerged as a flash point after a federal judge ruled over the summer that the pipeline must be shut down until a more robust environmental review was completed. The company filed an appeal of that order and is likely safe from another shutdown consideration through the end of the year. Still, the November presidential election could infuse fresh uncertainty surrounding the project.
Warren in June hosted Trump’s first in-person fundraiser since the coronavirus outbreak and is one of the president’s top donors in the energy industry. Former U.S. Energy Secretary Rick Perry sits on the board of directors of Energy Transfer’s general partner, an arrangement that Democratic Senator Elizabeth Warren has said represents “the kind of unethical, revolving-door corruption that has made Americans cynical and distrustful of the federal government.”
Even before the company’s management shake-up was announced, the billionaire had started taking a back seat on conference calls, letting McCrea and Long do most of the talking. Warren was known for being particularly candid on calls; while other CEOs talked down the potential for acquisitions that investors had grown wary of, Warren was unapologetic in his hunger for deals.
But his tone was notably different on the company’s most recent earnings call, when Energy Transfer joined its peers in slashing spending plans for new projects in response to a crash in crude prices.
“We went through a very aggressive growth spurt, and it’s been painful because it’s lasted longer than we expected and it cost more than we expected,” he said. “But now it’s about over, and we’re relieved that it is.”
This article was provided by Bloomberg News.