Energy Transfer LP
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.38%.
Did ET Beat Earnings? Q4 2025 Results
Energy Transfer delivered a mixed but strategically eventful fourth quarter, posting earnings per unit of $0.25 on revenue of $25.32 billion as net income attributable to partners slipped to $928 million from $1.08 billion a year earlier, weighed down by $277 million in impairment charges tied to the suspension of the Lake Charles LNG export project. Despite that headline pressure, the underlying business demonstrated durability, with adjusted EBITDA climbing 8% to $4.18 billion, reflecting the fee-based model's insulation from commodity swings. The partnership's strategic pivot away from Lake Charles toward higher-confidence infrastructure, including the upsized Desert Southwest expansion now targeting 2.3 Bcf/d at an estimated $5.60 billion, signals a deliberate reallocation of capital. New long-term natural gas supply agreements to serve Oracle's data centers, ramping toward roughly 900 MMcf/d across three facilities, add a compelling demand growth thread to the outlook. Looking ahead, Energy Transfer raised its 2026 adjusted EBITDA guidance to $17.45 billion to $17.85 billion, supported by $5.00 billion to $5.50 billion in planned growth capital spending.
- Adjusted EBITDA increased 8% YoY to $4.18 billion driven by volume growth across segments
- NGL and refined product terminal volumes up 12%, NGL transportation volumes up 5%, NGL fractionation volumes up 3% (Partnership record)
- NGL exports up 12%, crude oil transportation volumes up 6% (Partnership record)
- Midstream gathered volumes up 4%, interstate natural gas transportation volumes up 4%, intrastate volumes up 3%
- Sunoco LP segment Adjusted EBITDA increased to $646 million from $439 million primarily due to Parkland acquisition
- Interstate segment benefited from higher rates on contracted volumes and higher interruptible utilization
- Intrastate segment benefited from wider price spreads, higher storage optimization, and favorable gas pricing
- Approximately 40% of Adjusted EBITDA from natural gas-related assets with fee-based margins limiting commodity sensitivity
Forward Guidance & Outlook
Energy Transfer raised its 2026 Adjusted EBITDA guidance to a range of $17.45 billion to $17.85 billion, up from the prior range of $17.3 billion to $17.7 billion. The increase is solely attributable to USA Compression's acquisition of J-W Power Company, which closed January 12, 2026. The Partnership expects to invest $5.0 billion to $5.5 billion in growth capital for 2026, primarily on projects enhancing its natural gas network. Multiple large-scale projects are underway or planned, including the upsized Desert Southwest expansion (up to 2.3 Bcf/d, ~$5.6 billion), Mustang Draw II processing plant (in-service Q4 2026), FGT Phase IX (in-service Q4 2028), and natural gas deliveries ramping to three Oracle data centers (~900 MMcf/d aggregate). NGL hedge timing losses of ~$100 million and ~$14 million from a fog-related terminal closure are expected to be recovered in Q1 2026.
ET YoY Financials
ET Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.