Energy Transfer(US:ET)2026-02-17 12:41Financial Performance - Energy Transfer reported net income attributable to partners of $928 million for Q4 2025, down from $1.08 billion in Q4 2024[2]. - Adjusted EBITDA for Q4 2025 was $4.18 billion, an increase of 8% compared to $3.88 billion in Q4 2024[3]. - Distributable Cash Flow attributable to partners for Q4 2025 was $2.04 billion, up from $1.98 billion in the same period last year[3]. - Revenues for Q4 2025 reached $25,320 million, a 29.1% increase from $19,541 million in Q4 2024[21]. - Operating income for the year ended December 31, 2025, was $9,027 million, slightly down from $9,138 million in 2024, reflecting a decrease of 1.2%[21]. - Adjusted EBITDA for the year ended December 31, 2025, was $15,984 million, an increase of 3.2% from $15,483 million in 2024[23]. - Distributable Cash Flow (consolidated) for Q4 2025 was $2,681 million, up 4.6% from $2,563 million in Q4 2024[23]. - The company reported a basic net income per common unit of $0.25 for Q4 2025, down from $0.29 in Q4 2024[21]. - Distributions to partners for the year ended December 31, 2025, totaled $4,555 million, an increase from $4,388 million in 2024[23]. Capital Expenditures and Investments - The Partnership plans to invest $5.0 billion to $5.5 billion in growth capital for 2026, focusing on enhancing its natural gas network[13]. - Construction is underway on the Mustang Draw II processing plant, expected to be in service in Q4 2026, with a capacity of 275 MMcf/d[6]. - The FGT Phase IX Project is expected to cost up to $535 million and is anticipated to be in service in Q4 2028[6]. Asset and Revenue Growth - Energy Transfer's total assets increased to $141.286 billion as of December 31, 2025, up from $125.380 billion in 2024[19]. - Common Units outstanding at the end of Q4 2025 were 3,440.0 million, compared to 3,431.1 million in Q4 2024[23]. - Total revenues for the "All Other" segment increased to $1,055 million in Q4 2025, compared to $607 million in Q4 2024, with a segment margin of $33 million[52]. Segment Performance - Intrastate transportation and storage segment Adjusted EBITDA increased to $355 million, up 35% from $263 million year-over-year, driven by higher realized natural gas sales and transportation fees[38][39]. - Interstate transportation and storage segment Adjusted EBITDA rose to $523 million, a 6.1% increase from $493 million, attributed to higher transportation revenue and increased utilization[40][41]. - Midstream segment Adjusted EBITDA was $720 million, slightly up from $705 million, supported by increased gathered volumes in the Permian region[42][43]. - NGL and refined products transportation and services segment Adjusted EBITDA decreased to $1,078 million from $1,108 million, primarily due to a $100 million drop in marketing margin[44][45]. - Crude oil transportation and services segment Adjusted EBITDA fell to $722 million from $760 million, impacted by decreased transportation revenue from the Bakken Pipeline joint venture[46][47]. - Segment Adjusted EBITDA related to the investment in Sunoco LP increased to $646 million for the three months ended December 31, 2025, compared to $439 million in the same period last year, reflecting a significant growth[48]. - Revenues from the investment in USAC rose to $252 million in Q4 2025, up from $245 million in Q4 2024, driven by a $9 million increase in contract operations revenues[49]. - Adjusted EBITDA related to unconsolidated affiliates increased to $184 million in Q4 2025, compared to $170 million in Q4 2024, with notable contributions from Citrus and MEP[56]. Cost and Expense Management - Total costs and expenses for Q4 2025 were $23,244 million, a 34.6% increase from $17,262 million in Q4 2024[21]. - Interest expense for the year ended December 31, 2025, was $3,474 million, an increase of 11.2% from $3,125 million in 2024[21]. - Operating expenses increased by $185 million primarily due to costs associated with Parkland's operations, impacting overall profitability[51]. - Selling, general and administrative expenses rose by $103 million, largely attributed to Parkland's operations and one-time transaction-related expenses[51]. Future Outlook - Energy Transfer expects 2026 Adjusted EBITDA to range between $17.45 billion and $17.85 billion, an increase from the previous estimate of $17.3 billion to $17.7 billion[13]. - The company anticipates recognizing significant gains in the first quarter of 2026 due to the timing of NGL and refined product inventory hedge settlements[45].