Energy Transfer Q1 Earnings Beat Estimates, Revenues Down Y/Y

Core Viewpoint - Energy Transfer (ET) reported mixed financial results for Q1 2025, with adjusted earnings per unit exceeding expectations while total revenues fell short of estimates [1][2]. Financial Performance - Adjusted earnings for Q1 2025 were 36 cents per unit, beating the Zacks Consensus Estimate of 33 cents by 9.1% and increasing 12.5% from the previous year's figure of 32 cents [1]. - Total revenues amounted to $21 billion, missing the Zacks Consensus Estimate of$23.4 billion by 11% and decreasing 2.9% from $21.63 billion year-over-year [1]. - Total costs and expenses were$18.5 billion, down 3.7% year-over-year, attributed to lower costs of products sold [2]. - Operating income reached $2.5 billion, reflecting a 4.7$809 million, which is 11.1% higher than the prior year [2]. Operational Developments - In February 2025, ET commissioned the first of eight 10-megawatt natural gas-fired electric generation facilities in Texas [2]. - Construction of Phase I of the Hugh Brinson Pipeline commenced, with all pipeline steel secured and currently being rolled in U.S. pipe mills [3]. - ET entered a long-term agreement with Cloudburst Data Centers, Inc. to supply natural gas for its AI-focused data center development [3]. - The company approved the construction of a new natural gas processing plant in the Midland Basin, with a capacity of nearly 275 million cubic feet per day, expected to be operational by Q2 2026 [4]. Financial Position - As of March 31, 2025, ET's long-term debt was $59.78 billion, slightly up from$59.75 billion as of December 31, 2024 [5]. - The partnership had an available borrowing capacity of $4.37 billion under its revolving credit facility [5]. - For the three months ending March 31, 2025, ET invested approximately$955 million in growth capital expenditures [5]. Guidance - ET expects its adjusted EBITDA for 2025 to be between $16.1 billion and$16.5 billion [6]. - The firm anticipates growth capital expenditures of approximately $5 billion and maintenance capital expenditures of about$1.1 billion for 2025 [6].