Core Viewpoint - Energy Transfer is positioned for growth despite a recent decline in earnings, with several expansion projects and new gas supply agreements expected to drive future cash flow and total returns for investors [1][2][13]. Financial Performance - In the third quarter, Energy Transfer generated $3.8 billion in adjusted EBITDA, down from $4 billion year-over-year, and produced $1.9 billion in distributable cash flow, below last year's $2 billion [3][4]. - The company has generated nearly $6.2 billion in cash this year, covering $3.4 billion in distributions to investors [4][6]. - Adjusted EBITDA is projected to be slightly below the lower end of the guidance range of $16.1 billion to $16.5 billion, indicating nearly 4% growth from the previous year [7]. Growth Initiatives - Energy Transfer is investing $4.6 billion in growth capital projects this year and plans to allocate another $5 billion in 2026, which will support several expansion projects [8]. - Recent completions include the Nederland Flexport NGL expansion and the relocation of the Badger gas processing plant, with additional projects like the Mustang Draw gas processing plant expected to be completed next year [9]. New Contracts and Supply Agreements - The company has signed long-term gas supply agreements with Oracle for three U.S. data centers, with initial flows expected by the end of this year [10]. - Additional agreements include gas supply deals with CloudBurst, Fermi, and Entergy, which will contribute to cash flow starting in 2028 [11]. Long-term Expansion Projects - Energy Transfer is developing several long-term projects expected to come online between 2027 and 2029, including the Hugh Brinson Phase II and the Desert Southwest Expansion project [12]. - The company has potential projects in the pipeline, such as the proposed Lake Charles LNG export terminal and Dakota Access oil pipeline expansion, which will enhance its long-term growth outlook [12].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $3.84 billion, down from $3.96 billion in Q3 2024, indicating a flat year-over-year performance when excluding non-recurring items [3][4] - Year-to-date adjusted EBITDA reached $11.8 billion, slightly up from $11.6 billion for the same period in 2024 [4] - Distributable cash flow (DCF) attributable to partners was approximately $1.9 billion for the first nine months of 2025 [4] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA increased to $1.1 billion from $1 billion in Q3 2024, driven by higher throughput [4] - Midstream segment adjusted EBITDA decreased to $751 million from $816 million in Q3 2024, impacted by a one-time business interruption claim in the previous year [5] - Crude oil segment adjusted EBITDA was $746 million, down from $768 million in Q3 2024, affected by lower transportation revenues on certain pipelines [5][6] - Interstate natural gas segment adjusted EBITDA was $431 million, down from $460 million in Q3 2024, but included a $43 million increase from a tax resolution [6] - Intrastate natural gas segment adjusted EBITDA decreased to $230 million from $329 million in Q3 2024, despite increased volumes [7] Market Data and Key Metrics Changes - The company reported strong volumes through natural gas interstate and intrastate pipelines, with significant demand expected to support growth in gas-fired power plants and data centers [8][10] - The Desert Southwest Pipeline project is fully contracted under long-term commitments, indicating strong market demand [9] Company Strategy and Development Direction - The company plans to spend approximately $4.6 billion on organic growth capital projects in 2025, down from a previous estimate of $5 billion [7] - Future growth capital is expected to be around $5 billion in 2026, primarily focused on natural gas segments [7] - The company is expanding its NGL business and crude oil pipeline network to meet growing international demand [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to meet future energy demand growth, leveraging strong relationships to develop new projects [24] - The company is focused on capital discipline and ensuring projects meet risk-return criteria before proceeding [23][59] - Management highlighted the importance of securing long-term contracts and partnerships to support growth initiatives [26][28] Other Important Information - The company is actively engaging with stakeholders for the Desert Southwest Pipeline project, which is expected to enhance system reliability and market access [9][10] - The Hugh Brinson Pipeline is anticipated to provide significant optionality and connect shippers to a vast natural gas pipeline network [11] Q&A Session Summary Question: Clarification on guidance for the year - Management clarified that the guidance does not include the acquisition of Parkland and expects to be slightly below the initial guidance without it [26] Question: Details on Lake Charles LNG project - Management indicated that they are focused on securing contracts and equity partners before proceeding to FID, emphasizing financial discipline [27][28][59] Question: Financial impact of recent data center deals - Management expressed excitement about the data center deals, noting significant potential revenue and growth opportunities [30][32][34] Question: Consideration of converting NGL pipelines to natural gas service - Management is evaluating the conversion of underutilized NGL pipelines to natural gas service, citing potential for higher revenue [38][40][41] Question: Growth backlog and capital expenditure outlook - Management stated that they have a strong backlog of high-return projects and will update capital expenditure guidance as needed [47][48] Question: Expansion of Desert Southwest Pipeline - Management confirmed ongoing interest in upsizing the pipeline and is evaluating options for increased capacity [49][50]