Financial Data and Key Metrics Changes - For Q2 2025, the company generated adjusted EBITDA of $3.9 billion, an increase from $3.8 billion in Q2 2024, indicating a growth in operational performance [6] - The ECF attributable to partners was approximately $2 billion, with $2 billion spent on organic growth capital in the first half of 2025 [6] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA decreased to $1 billion from $1.1 billion in 2024, attributed to lower optimization gains and blending margins [7] - Midstream segment adjusted EBITDA increased to $768 million from $693 million, driven by a 10% increase in legacy volumes in the Permian Basin [8] - Crude oil segment adjusted EBITDA decreased to $732 million from $800 million, impacted by lower transportation revenues on the Bakken pipeline [9] - Interstate natural gas segment adjusted EBITDA rose to $470 million from $392 million, due to higher contracted volumes [10] - Intrastate natural gas segment adjusted EBITDA decreased to $284 million from $328 million, affected by reduced pipeline optimization [10] Market Data and Key Metrics Changes - The company noted strong volumes through its NGL fractionators and natural gas pipelines, with several volume records achieved during the quarter [6] - The Permian Basin processing volumes reached a new record of nearly 5 Bcf per day, reflecting increased operational capacity [16] Company Strategy and Development Direction - The company plans to spend approximately $5 billion on organic growth capital projects in 2025, focusing on NGL transportation and processing expansions [11] - New projects like the Desert Southwest Pipeline and Hugh Branson pipeline are expected to enhance system reliability and meet growing demand for natural gas [12][14] - The company aims to leverage its extensive pipeline network and storage capabilities to support the increasing demand for energy resources [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant growth in demand for energy resources and the company's strong positioning in the industry [22] - The company anticipates challenges in the Bakken and dry gas areas but expects recovery and growth in the second half of the year [21][60] Other Important Information - The Desert Southwest Pipeline project is expected to provide 1.5 Bcf per day of transportation capacity and is backed by long-term commitments [12] - The company is in advanced discussions for additional natural gas projects to support power plants and data centers [20] Q&A Session Summary Question: Can you provide more detail on the commercialization efforts related to data centers? - Management highlighted the significant upside potential in data centers and mentioned recent deals signed in Texas, with ongoing discussions for more contracts [27][31] Question: Can you provide color on the expected build multiple for the Desert Southwest project? - Management expressed confidence in selling out the project and mentioned potential for expansion due to high demand [34][35] Question: Where are we with the Lake Charles LNG project? - Management indicated that the EPC quote process is progressing well and they are optimistic about reaching FID soon [41][43] Question: What are the competitive advantages in winning the Desert Southwest project? - Management attributed success to strong negotiation capabilities and a well-integrated pipeline network [50][51] Question: How does the company view construction cost risk sharing? - Management confirmed a traditional structure where the midstream company bears the cost risks, with contingency plans in place [55][46] Question: What is the outlook for Bakken and Permian crude growth? - Management noted a temporary decline in volumes but expressed bullish sentiment for future growth due to upcoming projects and market dynamics [60][62] Question: How will the company approach LNG expansions given existing infrastructure? - Management emphasized the benefits of vertical integration and the existing pipeline routes that support the Lake Charles LNG project [85] Question: What percentage of overall business EBITDA could gas represent in the future? - Management refrained from providing an exact percentage but indicated that gas projects are expected to grow significantly as a portion of the overall business [104][105]

Financial Data and Key Metrics Changes - For Q2 2025, the company generated adjusted EBITDA of $3.9 billion, an increase from $3.8 billion in Q2 2024, indicating a growth in operational performance [5] - The ECF attributable to partners was approximately $2 billion, with $2 billion spent on organic growth capital in the first half of 2025 [5] - The company expects to be at or slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion for 2025 due to weakness in the Bakken and slower recovery in dry gas areas [19][20] Segment Performance Changes - NGL and refined products segment adjusted EBITDA decreased to $1 billion from $1.1 billion in 2024, impacted by lower optimization gains and blending margins [6] - Midstream segment adjusted EBITDA increased to $768 million from $693 million, driven by a 10% increase in legacy volumes in the Permian Basin [6] - Crude oil segment adjusted EBITDA decreased to $732 million from $800 million, affected by lower transportation revenues on the Bakken pipeline [7] - Interstate natural gas segment adjusted EBITDA rose to $470 million from $392 million, attributed to higher contracted volumes [8] - Intrastate natural gas segment adjusted EBITDA decreased to $284 million from $328 million, due to reduced pipeline optimization [8] Market Data and Key Metrics Changes - The company reported strong volumes in midstream gathering, crude transportation, and NGL export volumes, indicating robust market demand [5] - The Permian Basin processing volumes reached a record of nearly 5 Bcf per day, reflecting increased operational capacity [14] Company Strategy and Industry Competition - The company plans to spend approximately $5 billion on organic growth capital projects in 2025, focusing on NGL transportation and pipeline expansions [9] - New projects like the Desert Southwest Pipeline and Hugh Branson pipeline are expected to enhance the company's position in the natural gas market [10][12] - The company aims to leverage its extensive pipeline network and storage capabilities to meet growing energy demands, positioning itself as a leader in the industry [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant growth in energy resource demand driven by natural gas and NGLs [20] - The company is confident in its ability to meet future demand with its extensive pipeline network and strategic projects [21] - Management acknowledged challenges in the Bakken and dry gas areas but remains bullish about long-term growth prospects [19][60] Other Important Information - The company has a significant backlog of contracted growth projects expected to generate strong returns and enhance its integrated value chain [23] - The Lake Charles LNG project is progressing, with significant interest from potential customers and ongoing discussions for equity sell-down [17][18] Q&A Session Summary Question: Can you provide more detail on the commercialization efforts related to data centers? - Management highlighted the complexity and time required for data center projects, noting recent significant deals in Texas and ongoing negotiations for additional contracts [26][30][31] Question: Can you provide color on the expected build multiple for the Desert Southwest project? - Management expressed confidence in selling out the project and mentioned potential for expansion due to high demand [34][35] Question: What is the status of the Lake Charles EPC quote process? - Management confirmed that the EPC contract is progressing as expected and is aligned with their financial projections [40][42] Question: How does the company view construction cost risk sharing for the Desert Southwest project? - Management indicated a traditional structure where the midstream company bears the cost risk, with confidence in meeting estimated costs [44][55] Question: What percentage of the overall business could gas represent in the future? - Management refrained from providing an exact percentage but indicated that gas projects are expected to grow significantly as a portion of the overall business [103][104]

Financial Performance - Energy Transfer's Q2 2025 Adjusted EBITDA was $3.87 billion[7] - Distributable Cash Flow attributable to partners in Q2 2025 was $1.96 billion[7] - Year-to-date 2025 Growth Capital Expenditures reached $2.0 billion, while Maintenance Capital Expenditures were $418 million[7] - The company anticipates approximately $5.0 billion in Growth Capital Expenditures for the full year 2025[7] - The quarterly cash distribution increased to $0.33 per unit, a rise of over 3% compared to Q2 2024[7] Operational Highlights - Interstate natural gas transportation volumes increased by 11% compared to Q2 2024[7] - Midstream gathered volumes rose by 10%, setting a new partnership record[7] - Crude oil transportation volumes increased by 9%, also setting a new partnership record[7] - Total NGL exports increased by 5%, establishing another new partnership record[7] Strategic Initiatives - The company announced a 1.5 Bcf/d expansion to the Transwestern Pipeline, named the Desert Southwest expansion project, involving a 516-mile, 42-inch natural gas pipeline connecting the Permian Basin with markets in Arizona and New Mexico[7]

[Q2 2025 Financial & Operational Overview](index=1&type=section&id=Q2%202025%20Financial%20%26%20Operational%20Overview) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) For the second quarter of 2025, Energy Transfer reported a net income attributable to partners of $1.16 billion, a decrease from $1.31 billion in Q2 2024, while Adjusted EBITDA grew to $3.87 billion from $3.76 billion year-over-year, and the partnership announced a quarterly cash distribution of $0.33 per common unit, an increase of over 3% from the prior year's quarter, with full-year 2025 Adjusted EBITDA guidance now expected to be at or slightly below the lower end of the $16.1 billion to $16.5 billion range Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income Attributable to Partners | $1.16 billion | $1.31 billion | | Net Income per Common Unit (basic) | $0.32 | $0.35 | | Adjusted EBITDA | $3.87 billion | $3.76 billion | | Distributable Cash Flow (attributable to partners, as adjusted) | $1.96 billion | $2.04 billion | | Growth Capital Expenditures | $1.04 billion | N/A | | Maintenance Capital Expenditures | $253 million | N/A | - Announced a quarterly cash distribution of **$0.33 per common unit** (**$1.32 annualized**) for Q2 2025, representing a **more than 3% increase** compared to Q2 2024[12](index=12&type=chunk) - The Partnership updated its full-year 2025 guidance, expecting Adjusted EBITDA to be at or slightly below the lower end of the previously stated range of **$16.1 billion to $16.5 billion**, with growth capital expenditure guidance remaining approximately **$5 billion**[12](index=12&type=chunk) [Operational & Strategic Highlights](index=1&type=section&id=Operational%20%26%20Strategic%20Highlights) Energy Transfer reported record volumes across several key areas in Q2 2025, including midstream gathered volumes and crude oil transportation, announced a major 1.5 Bcf/d expansion of its Transwestern Pipeline, and achieved significant milestones in its LNG strategy by signing new SPAs with Chevron and Kyushu Electric Power for its Lake Charles LNG project, while also placing several processing plants and export expansion projects into service - Announced a **1.5 Bcf/d expansion** of the Transwestern Pipeline, a **$5.3 billion project** to connect the Permian Basin with markets in Arizona, New Mexico, and Texas, expected to be in service by Q4 2029[5](index=5&type=chunk) Q2 2025 Volume Growth (vs. Q2 2024) | Category | YoY Growth | Note | | :--- | :--- | :--- | | Interstate natural gas transportation | +11% | - | | Midstream gathered volumes | +10% | New Partnership record | | Crude oil transportation | +9% | New Partnership record | | Intrastate natural gas transportation | +8% | - | | NGL transportation | +4% | New Partnership record | | NGL and refined products terminal | +3% | New Partnership record | | NGL exports | +5% | New Partnership record | - Advanced the Lake Charles LNG project by signing a 20-year SPA with Chevron for an additional **1.0 mtpa** (totaling **3.0 mtpa**) and another 20-year SPA with Kyushu Electric Power for **1.0 mtpa**[12](index=12&type=chunk) - Several key projects were placed into service, including the **200 MMcf/d Lenorah II** and Badger Processing plants, the Nederland Flexport NGL Export Expansion Project, and the second of eight natural gas-fired electric generation facilities[6](index=6&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Energy Transfer's total assets stood at $125.02 billion, a slight decrease from $125.38 billion at year-end 2024, with long-term debt increasing to $60.75 billion from $59.75 billion over the same period, while total partners' capital decreased slightly to $34.78 billion Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$125,022** | **$125,380** | | Total Current Assets | $13,671 | $14,202 | | Property, Plant and Equipment, net | $95,531 | $95,212 | | **Total Liabilities** | **$79,488** | **$79,363** | | Total Current Liabilities | $11,849 | $12,656 | | Long-term debt, less current maturities | $60,749 | $59,752 | | **Total Equity** | **$45,534** | **$46,017** | | Total Partners' Capital | $34,779 | $35,118 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, revenues were $19.24 billion, down from $20.73 billion in the prior-year period, primarily due to lower cost of products sold, with operating income remaining stable at $2.31 billion, and net income attributable to partners decreasing to $1.16 billion from $1.31 billion, resulting in basic net income per common unit of $0.32 compared to $0.35 in Q2 2024 Statement of Operations Summary - Three Months Ended June 30 (in millions, except per unit data) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Revenues | $19,242 | $20,729 | | Cost of products sold | $13,946 | $15,609 | | Operating Income | $2,309 | $2,298 | | Net Income | $1,458 | $1,992 | | Net Income Attributable to Partners | $1,163 | $1,314 | | Net Income per Common Unit (Basic) | $0.32 | $0.35 | [Non-GAAP Financial Measures & Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Distributable%20Cash%20Flow) The reconciliation from Net Income to non-GAAP measures shows that for Q2 2025, Net Income of $1.46 billion was adjusted primarily for depreciation ($1.38 billion) and interest expense ($865 million) to arrive at a consolidated Adjusted EBITDA of $3.87 billion, with further adjustments for interest, taxes, and maintenance capital resulting in Distributable Cash Flow attributable to partners of $1.96 billion Q2 2025 Reconciliation Summary (in millions) | Metric | Amount | | :--- | :--- | | Net income | $1,458 | | (+) Depreciation, depletion and amortization | $1,384 | | (+) Interest expense, net | $865 | | (+) Income tax expense | $79 | | Other adjustments | $180 | | **Adjusted EBITDA (consolidated)** | **$3,866** | | (-) Adjustments for DCF calculation | ($1,330) | | **Distributable Cash Flow (consolidated)** | **$2,536** | | (-) DCF attributable to noncontrolling interests | ($578) | | **Distributable Cash Flow attributable to partners** | **$1,958** | [Definitions of Non-GAAP Measures](index=7&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company defines Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, and other non-cash items, while Distributable Cash Flow (DCF) is defined as net income adjusted for non-cash items, less preferred unitholder distributions and maintenance capital expenditures, with management using these measures to assess operating performance and the ability to fund distributions - Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, and other specified non-cash items, used by management for assessing operating performance and setting budgets[25](index=25&type=chunk)[27](index=27&type=chunk) - Distributable Cash Flow (DCF) is defined as net income adjusted for certain non-cash items, less distributions to preferred unitholders and maintenance capital expenditures, used to evaluate the ability to fund distributions from operational cash generation[28](index=28&type=chunk)[29](index=29&type=chunk) [Segment Performance Analysis](index=8&type=section&id=Segment%20Performance%20Analysis) [Summary of Segment Adjusted EBITDA](index=8&type=section&id=Summary%20of%20Segment%20Adjusted%20EBITDA) In Q2 2025, the NGL and Refined Products segment was the largest contributor to Adjusted EBITDA at $1.03 billion, despite a slight decrease from the prior year, while the Midstream and Interstate Transportation segments showed strong year-over-year growth, and the Crude Oil and Intrastate segments saw declines, with the Investment in Sunoco LP segment's contribution increasing significantly Segment Adjusted EBITDA - Three Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Intrastate transportation and storage | $284 | $328 | | Interstate transportation and storage | $470 | $392 | | Midstream | $768 | $693 | | NGL and refined products transportation and services | $1,033 | $1,070 | | Crude oil transportation and services | $732 | $801 | | Investment in Sunoco LP | $454 | $320 | | Investment in USAC | $149 | $144 | | All other | ($24) | $12 | | **Adjusted EBITDA (consolidated)** | **$3,866** | **$3,760** | [Intrastate Transportation and Storage](index=9&type=section&id=Intrastate%20Transportation%20and%20Storage) The Intrastate segment's Adjusted EBITDA decreased to $284 million from $328 million YoY, despite an increase in transported volumes, with the decline driven by lower realized natural gas sales margins due to narrower price spreads and a decrease in transportation fees compared to a prior period recovery - Segment Adjusted EBITDA decreased by **$44 million** YoY, primarily due to a **$45 million decrease** in realized natural gas sales from lower optimization volumes and narrower price spreads, and an **$11 million decrease** in transportation fees[36](index=36&type=chunk)[37](index=37&type=chunk) - Transported natural gas volumes increased to **14,229 BBtu/d** from **13,143 BBtu/d** in Q2 2024, driven by more third-party transportation[35](index=35&type=chunk) [Interstate Transportation and Storage](index=9&type=section&id=Interstate%20Transportation%20and%20Storage) This segment delivered strong growth, with Adjusted EBITDA increasing to $470 million from $392 million YoY, fueled by a significant rise in transported volumes due to higher capacity sales and utilization on major pipelines, leading to a $70 million increase in segment margin - Segment Adjusted EBITDA increased by **$78 million** YoY, driven by a **$70 million increase** in segment margin from higher contracted volumes and a **$12 million increase** in Adjusted EBITDA from unconsolidated affiliates[38](index=38&type=chunk)[39](index=39&type=chunk) - Transported natural gas volumes rose to **18,153 BBtu/d** from **16,337 BBtu/d** in Q2 2024, due to increased demand and capacity sold on several major pipeline systems[36](index=36&type=chunk) [Midstream](index=10&type=section&id=Midstream) The Midstream segment's Adjusted EBITDA grew to $768 million from $693 million YoY, primarily due to higher volumes and margins from newly acquired assets and plant expansions in the Permian region, which more than offset higher operating expenses - Segment Adjusted EBITDA increased by **$75 million** YoY, driven by a **$176 million increase** in segment margin from acquired assets and higher Permian volumes, partially offset by a **$95 million increase** in operating expenses[39](index=39&type=chunk)[40](index=40&type=chunk) - Gathered volumes increased to **21,329 BBtu/d** from **19,437 BBtu/d**, and NGLs produced rose to **1,181 MBbls/d** from **955 MBbls/d**, primarily due to acquired assets and increased Permian plant utilization[38](index=38&type=chunk) [NGL and Refined Products Transportation and Services](index=11&type=section&id=NGL%20and%20Refined%20Products%20Transportation%20and%20Services) Adjusted EBITDA for this segment decreased slightly to $1.03 billion from $1.07 billion YoY, as transportation and fractionation margins increased due to higher volumes from the Permian, but this was more than offset by a $78 million decrease in marketing margin from lower gains on hedged inventories - Segment Adjusted EBITDA decreased by **$37 million** YoY, mainly due to a **$78 million decrease** in marketing margin, partially offset by a **$33 million increase** in transportation margin and a **$12 million increase** in fractionators margin[42](index=42&type=chunk)[43](index=43&type=chunk) - NGL transportation volumes increased to **2,331 MBbls/d** from **2,235 MBbls/d**, and NGL fractionation volumes grew to **1,150 MBbls/d** from **1,093 MBbls/d**, driven by higher volumes from the Permian region[41](index=41&type=chunk) [Crude Oil Transportation and Services](index=11&type=section&id=Crude%20Oil%20Transportation%20and%20Services) This segment's Adjusted EBITDA declined to $732 million from $801 million YoY, primarily due to a $46 million drop in segment margin, driven by lower transportation revenue from the Bakken Pipeline system, which was not fully offset by contributions from the new ET-S Permian joint venture - Segment Adjusted EBITDA decreased by **$69 million** YoY, caused by a **$46 million decrease** in segment margin (primarily from the Bakken Pipeline) and a **$21 million increase** in operating expenses[44](index=44&type=chunk)[45](index=45&type=chunk) - Crude oil transportation volumes increased to **7,049 MBbls/d** from **6,490 MBbls/d** due to growth on gathering systems and the ET-S Permian JV, but this was offset by lower volumes on the Bakken Pipeline[42](index=42&type=chunk) [Investment in Sunoco LP](index=12&type=section&id=Investment%20in%20Sunoco%20LP) The Investment in Sunoco LP segment saw a significant increase in Adjusted EBITDA to $454 million from $320 million YoY, driven by a decrease of $85 million in SG&A expenses (related to one-time NuStar acquisition costs in 2024) and contributions from the new ET-S Permian joint venture - Segment Adjusted EBITDA increased by **$134 million** YoY, with key drivers including an **$85 million decrease** in SG&A related to prior-year acquisition costs and a **$48 million increase** in Adjusted EBITDA from the ET-S Permian unconsolidated affiliate[45](index=45&type=chunk)[46](index=46&type=chunk) [Investment in USAC](index=13&type=section&id=Investment%20in%20USAC) The Investment in USAC segment reported a modest increase in Adjusted EBITDA to $149 million from $144 million YoY, due to a $10 million increase in segment margin from higher demand and rates for compression services - Segment Adjusted EBITDA increased by **$5 million** YoY, driven by a **$10 million rise** in segment margin from higher revenue-generating horsepower and improved market rates for compression units[48](index=48&type=chunk)[49](index=49&type=chunk) [All Other](index=13&type=section&id=All%20Other) The 'All Other' segment reported an Adjusted EBITDA loss of $24 million, a significant decrease from a positive $12 million in the prior year, primarily due to a $48 million intersegment elimination related to Sunoco LP's share of the ET-S Permian joint venture - Segment Adjusted EBITDA decreased by **$36 million** YoY, primarily due to a **$48 million negative impact** from the intersegment elimination of Sunoco LP's share of the ET-S Permian joint venture[50](index=50&type=chunk) [Supplemental Information](index=14&type=section&id=Supplemental%20Information) [Liquidity and Credit Facility](index=14&type=section&id=Liquidity%20and%20Credit%20Facility) As of June 30, 2025, Energy Transfer had $2.51 billion of available borrowing capacity under its $5.0 billion Five-Year Revolving Credit Facility, which matures in April 2029 Revolving Credit Facility Status (as of June 30, 2025) | Facility | Facility Size | Funds Available | | :--- | :--- | :--- | | Five-Year Revolving Credit Facility | $5,000 million | $2,506 million | [Unconsolidated Affiliates](index=15&type=section&id=Unconsolidated%20Affiliates) For Q2 2025, total equity in earnings from unconsolidated affiliates was $105 million, up from $85 million YoY, with Citrus being the largest contributor, while Adjusted EBITDA from these affiliates increased to $182 million from $170 million, and distributions received decreased to $124 million from $145 million Unconsolidated Affiliates Summary - Three Months Ended June 30 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total equity in earnings | $105 | $85 | | Total Adjusted EBITDA | $182 | $170 | | Total distributions received | $124 | $145 | [Non-Wholly Owned Joint Venture Subsidiaries](index=16&type=section&id=Non-Wholly%20Owned%20Joint%20Venture%20Subsidiaries) For Q2 2025, the aggregated Adjusted EBITDA of non-wholly owned joint venture subsidiaries (on a 100% basis) was $566 million, with Energy Transfer's proportionate share being $275 million, representing a decrease from the prior year's figures of $677 million and $329 million, respectively Non-Wholly Owned JVs Summary - Three Months Ended June 30 (in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Adjusted EBITDA (100%) | $566 | $677 | | Our proportionate share of Adjusted EBITDA | $275 | $329 | | Distributable Cash Flow (100%) | $544 | $655 | | Our proportionate share of DCF | $255 | $309 |

Core Viewpoint - Energy Transfer LP (ET) is anticipated to show a revenue increase while experiencing a decline in earnings per share for the second quarter of 2025, with revenues expected to reach $25.26 billion, reflecting a 21.87% year-over-year growth, and earnings per unit projected at 32 cents, indicating an 8.57% decline from the previous year [1][3][7]. Revenue Estimates - The Zacks Consensus Estimate for ET's second-quarter revenues is $25.26 billion, which is a 21.87% increase from the $20.73 billion reported in the same quarter last year [2][7]. - For the next quarter, revenues are estimated at $25.82 billion, with a year-over-year growth of 24.32% [2]. - The total revenue estimates for the current year and next year are $99.66 billion and $109.26 billion, respectively, showing a year-over-year growth of 20.55% and 9.63% [2]. Earnings Estimates - The consensus estimate for earnings per unit is 32 cents, which represents an 8.57% decline from the 35 cents reported in the same quarter last year [3][4]. - For the next quarter, earnings are estimated at 34 cents, with a projected growth of 6.25% year-over-year [4]. - The earnings estimates for the current year and next year are $1.41 and $1.56, respectively, indicating a growth of 10.16% and 10.76% [4]. Performance Insights - Energy Transfer has missed the Zacks Consensus Estimate for earnings in two of the last four quarters, resulting in an average negative surprise of 3.28% [5][6]. - The company's fee-based contracts and natural gas liquids (NGL) exports are expected to have significantly supported its second-quarter performance [7][13]. Strategic Developments - Energy Transfer is expanding its clean power generation portfolio, having brought online the first of eight planned 10-megawatt natural gas-fired power plants, which is expected to positively impact earnings [14]. - The company is leveraging its extensive pipeline infrastructure, benefiting from increased hydrocarbon output, with strong NGL export volumes contributing to its performance [15][16]. Market Position - Energy Transfer's units are trading at a trailing 12-month EV/EBITDA of 10.22X, which is lower than the industry average of 11.46X, indicating a relatively inexpensive valuation [17]. - The stock has gained 14.3% over the past year, outperforming the Zacks Oil and Gas Production Pipeline – MLB industry, which saw a 10.9% increase [19]. Long-term Outlook - The company operates a vast network of nearly 140,000 miles of pipelines across 44 states, positioning it well to capitalize on the increasing U.S. production of oil, natural gas, and NGLs [21]. - Ongoing investments to expand pipeline and processing capacity are expected to strengthen Energy Transfer's position in the midstream sector, supported by strong LNG export capabilities and rising domestic demand [22].

Core Viewpoint - Energy Transfer LP (ET) is expected to report quarterly earnings of $0.32 per share, reflecting an 8.6% decline year-over-year, while revenues are forecasted to increase by 21.9% to $25.26 billion [1]. Earnings Projections - The consensus EPS estimate has been revised down by 0.7% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Estimates - Analysts project 'Midstream - Gathered volumes' to reach 20,763 billion British thermal units per day, up from 19,437 billion British thermal units per day in the same quarter last year [5]. - The estimate for 'Midstream - NGLs produced' is 1,098.09 thousand barrels of oil per day, compared to 955.00 thousand barrels per day in the same quarter last year [5]. - 'Midstream - Equity NGLs' is expected to reach 62.19 thousand barrels of oil per day, up from 56.00 thousand barrels per day in the same quarter last year [6]. - 'NGL and Refined Products Transportation and Services - NGL and refined products terminal volumes' are estimated at 1,445.17 thousand barrels of oil per day, down from 1,506.00 thousand barrels per day year-over-year [7]. - 'NGL and Refined Products Transportation and Services - NGL fractionation volumes' are projected at 1,109.81 thousand barrels of oil per day, slightly up from 1,093.00 thousand barrels per day in the same quarter last year [8]. - The estimate for 'NGL and Refined Products Transportation and Services - Refined products transportation volumes' is 577.72 thousand barrels of oil per day, down from 602.00 thousand barrels per day year-over-year [9]. - 'NGL and Refined Products Transportation and Services - NGL transportation volumes' are expected to reach 2,249.71 thousand barrels of oil per day, compared to 2,235.00 thousand barrels per day in the same quarter last year [10]. Adjusted EBITDA Estimates - 'Adjusted EBITDA- Intrastate transportation and storage' is projected at $319.20 million, down from $328.00 million in the same quarter last year [11]. - 'Adjusted EBITDA- Interstate transportation and storage' is expected to reach $423.80 million, up from $392.00 million year-over-year [11]. - 'Adjusted EBITDA- Crude oil transportation and services' is estimated at $764.45 million, down from $801.00 million in the same quarter last year [12]. - 'Adjusted EBITDA- NGL and refined products transportation and services' is projected at $993.70 million, down from $1.07 billion year-over-year [13]. - The estimated 'Adjusted EBITDA- Midstream' is $798.55 million, up from $693.00 million in the same quarter last year [13]. Stock Performance - Energy Transfer LP shares have decreased by 1% over the past month, while the Zacks S&P 500 composite has increased by 0.6% [13].

Core Viewpoint - Energy Transfer is expected to experience a more favorable second half of the year with several potential catalysts for growth despite a lackluster first half [1][3]. Group 1: Financial Performance - Energy Transfer achieved a 13% growth in adjusted EBITDA last year, driven by acquisitions [3]. - The company anticipates a slowdown in earnings growth to about 5% this year due to fewer growth catalysts [3]. Group 2: Growth Projects - The company is investing $5 billion in growth capital projects this year, with several projects expected to begin service in the second half [4]. - Key projects include the Nederland Flexport NGL Expansion and the Badger gas processing plant, which are set to contribute to growth [4]. Group 3: Future Expansion and Financial Position - Potential approvals for expansion projects, such as the Lake Charles LNG terminal and gas supply projects for AI data centers, could further enhance growth prospects [5]. - Energy Transfer is currently in its strongest financial position, providing flexibility for potential major acquisitions to accelerate growth [5]. Group 4: Income Stream - The company offers an attractive income stream with a distribution yield of over 7%, providing a solid return for investors in the second half [6]. Group 5: Overall Investment Outlook - The combination of growth projects, financial strength, and income potential positions Energy Transfer as an excellent investment opportunity in the second half of 2025 [7].

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Core Insights - The energy market is characterized by rapid changes, with crude oil prices fluctuating significantly, impacting investment strategies [1][2] Group 1: Chevron - Chevron has a strong balance sheet with a debt-to-equity ratio of approximately 0.2, positioning it well among its peers [4] - The company recently completed the acquisition of Hess for about $53 billion, demonstrating its financial strength and resilience [5] - Chevron has increased its dividend for 38 consecutive years, supported by its ability to manage debt during downturns [6][7] Group 2: Energy Transfer - Energy Transfer is well-positioned to thrive in the evolving energy landscape, particularly due to the rising demand for natural gas [8][9] - The company operates over 130,000 miles of pipeline and plans to invest $5 billion in growth capital expenditures, focusing on natural gas infrastructure [10] - Energy Transfer offers a high dividend yield of 7.4% and targets 3% to 5% annual dividend growth, making it an attractive investment [11] Group 3: ExxonMobil - ExxonMobil aims to thrive in the changing energy market with a diverse portfolio of low-cost production assets and a growing low-carbon solutions business [12] - The company has achieved $12.1 billion in annual cost savings since 2019, with a target of $18 billion by 2030, enhancing its competitive advantage [14] - ExxonMobil has increased its dividend for 42 consecutive years, supported by its strong balance sheet and projected earnings growth of $20 billion by 2030 [16][17][18]

Core Viewpoint - Energy Transfer presents a compelling investment opportunity due to its high distribution yield, strong financial profile, and attractive valuation [1][10]. Financial Profile - Energy Transfer's diversified midstream business generates substantial and stable cash flow, with approximately 90% of annual earnings backed by fee-based contracts [3]. - In the first quarter, the company produced $2.3 billion of distributable cash flow, distributing over $1.1 billion to investors while retaining the remainder for expansion [3]. - The conservative payout ratio has allowed the company to maintain a leverage ratio in the lower half of its target range of 4 to 4.5 times, positioning it in its strongest financial state in history [4]. Growth Potential - Energy Transfer is projected to grow its EBITDA by around 5% this year, driven by acquisitions, organic expansion projects, and favorable market conditions [5]. - The company is investing $5 billion into growth capital projects this year, including gas processing plants and a new natural gas pipeline, with expectations for earnings growth in 2026 to 2027 [6]. - Key growth catalysts include rising Permian production, increasing gas demand from sectors like AI data centers, and growing export demand for natural gas liquids [8]. Valuation and Returns - Energy Transfer trades at an enterprise value (EV)-to-EBITDA ratio of less than 9, significantly lower than the peer group average of around 12, enhancing its distribution yield [10]. - The company aims to deliver annual distribution increases of 3% to 5%, supported by visible earnings growth from upcoming projects and expansion opportunities [9]. Investment Appeal - Energy Transfer offers a high-yielding distribution and is in the best financial shape in its history, making it an attractive investment for those seeking a lucrative and growing passive income stream [11].