Energy Transfer(ET) - 2025 Q3 - Quarterly Report

Acquisitions and Investments - Sunoco LP completed the acquisition of Parkland, with shareholders receiving 0.295 SunocoCorp units and C$19.80 for each Parkland share[200]. - Sunoco LP agreed to acquire TanQuid for approximately €500 million (approximately $587 million), including €300 million of assumed debt, expected to close in Q4 2025[201]. - In Q1 2025, Sunoco LP acquired fuel equipment and supply agreements for approximately $17 million, including $12 million in cash and newly issued common units valued at approximately $5 million[202]. - In Q2 2025, Sunoco LP acquired 151 fuel distribution consignment sites for approximately $105 million, including $92 million in cash and newly issued common units valued at approximately $13 million[203]. - In Q3 2025, Sunoco LP acquired approximately 70 fuel distribution consignment sites and 100 supply agreements for approximately $85 million in cash[204]. Financial Performance - For the three months ended September 30, 2025, Segment Adjusted EBITDA decreased by $121 million, or 3%, compared to the same period last year, primarily due to lower segment margin and higher operating expenses in multiple reportable segments[225]. - For the nine months ended September 30, 2025, net income decreased by $648 million, or 13%, primarily due to a $598 million gain recognized by Sunoco LP on its sale of West Texas assets in the prior period[224]. - For the nine months ended September 30, 2025, Adjusted EBITDA increased by $203 million, or 2%, primarily due to higher segment margin in the midstream segment and the investment in Sunoco LP segment[226]. - The consolidated Adjusted EBITDA for the three months ended September 30, 2025, was $3,838 million, compared to $3,959 million for the same period in 2024, reflecting a decrease of $121 million[222]. - The Partnership's net income for the three months ended September 30, 2025, was $1,292 million, a decrease of $142 million, or 10%, compared to the same period in 2024[223]. Revenue and Expenses - Revenues for the three months ended September 30, 2025, were $869 million, an increase of $191 million compared to the same period last year[240]. - Segment Adjusted EBITDA decreased by $99 million to $230 million for the three months ended September 30, 2025, compared to the same period last year[240]. - Operating expenses for the NGL and refined products segment increased by $241 million, primarily due to recently acquired assets and adjustments in estimates recorded in the prior period[254]. - The depreciation, depletion, and amortization expenses increased by $400 million for the nine months ended September 30, 2025, compared to the same period last year, primarily due to additional depreciation from recently placed assets[226]. Tax and Regulatory Changes - The One Big Beautiful Bill Act reinstates 100% bonus depreciation on qualified property, expected to defer a significant portion of corporate subsidiaries' U.S. federal income taxes[206]. - The FERC's revised policy on income tax allowances may impact the rates charged for FERC-regulated transportation services, with potential revenue reductions[208]. - The FERC initiated a review of its policies on certification of natural gas pipelines, with new policy statements issued in 2022[212]. Debt and Financing - As of September 30, 2025, total consolidated indebtedness was $63.10 billion, up from $59.76 billion at the end of 2024[288]. - The company issued $1.25 billion of 5.70% senior notes due April 2035 in March 2025 to refinance existing indebtedness[289]. - Sunoco LP issued $1.00 billion of 6.25% senior notes due 2033 in March 2025, using proceeds to repay existing senior notes[293]. - Cash used in financing activities during 2025 was $562 million, significantly lower than $4.34 billion in 2024, with a net increase in debt of $3.41 billion compared to $4.24 billion in 2024[284]. Operational Metrics - Natural gas transported increased to 13,861 BBtu/d for the three months ended September 30, 2025, up by 647 BBtu/d from the previous year[240]. - Gathered volumes in the midstream segment increased by 554 BBtu/d to 21,581 BBtu/d for the three months ended September 30, 2025, primarily due to newly acquired assets[250]. - NGL transportation volumes increased to 2,487 MBbls/d for Q3 2025, up 11.2% from 2,237 MBbls/d in Q3 2024[252]. - Crude oil transportation volumes were 7,023 MBbls/d in Q3 2025, slightly down from 7,025 MBbls/d in Q3 2024, while nine-month volumes increased to 6,932 MBbls/d, up 6.0% from 6,540 MBbls/d[258]. Capital Expenditures - Total capital expenditures for 2025 are expected to be approximately $4,600 million for growth and $1,100 million for maintenance[269]. - Sunoco LP plans to invest approximately $150 million in maintenance capital expenditures and at least $400 million in growth capital for the full year 2025[270]. - USAC plans to invest between $38 million and $42 million in maintenance capital expenditures and between $115 million and $125 million in expansion capital expenditures for the full year 2025[272].