Energy Transfer(US:ET)2025-11-05 22:32Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $3.84 billion, a decrease from $3.96 billion in Q3 2024, but flat year-over-year when excluding non-recurring items [3][4] - Year-to-date adjusted EBITDA reached $11.8 billion, compared to $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 [5] - Interstate natural gas segment adjusted EBITDA decreased to $431 million from $460 million in Q3 2024, but included a $43 million increase from a prior tax obligation resolution [6] - Intrastate natural gas segment adjusted EBITDA fell to $230 million from $329 million in Q3 2024, despite increased volumes due to third-party growth [7] Market Data and Key Metrics Changes - The company experienced strong volumes in 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 exploring converting NGL pipelines to natural gas service due to competitive pressures and potential for higher revenue [12][45] - Significant expansions in processing capacity in the Permian Basin are anticipated to support downstream pipeline networks [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to meet growing energy demand and highlighted a strong backlog of growth projects [23][24] - The company is focused on capital discipline and ensuring projects meet risk-return criteria before proceeding [22][76] - Management noted that the LNG project at Lake Charles is contingent on securing sufficient equity partners and contracts before moving to a final investment decision (FID) [22][76] Other Important Information - The company has entered into multiple long-term agreements with data centers and power plants, reflecting a growing demand for natural gas supply [15][36] - The expansion of the Bethel natural gas storage facility is expected to double its capacity, enhancing reliability and addressing demand fluctuations [13][66] Q&A Session Summary Question: Clarification on guidance for the year - Guidance for 2025 does not include the acquisition of Parkland, and the company expects to be slightly below the initial guidance range [27] Question: Details on Lake Charles LNG project - The company is focused on securing contracts and equity partners before proceeding to FID, with ongoing discussions to finalize agreements [28][30] Question: Financial impact of recent data center deals - The company is optimistic about the financial impact of data center agreements, which are expected to drive significant revenue growth [33][36] Question: Growth backlog and CapEx outlook - The company has a strong backlog of high-return projects, with a projected CapEx of $5 billion for the next year [54][55] Question: Converting NGL pipes to natural gas service - The company is considering converting underutilized NGL pipelines to natural gas service due to competitive pressures and potential for higher revenue [42][45] Question: Crude oil projects and earnings growth - The company expects new connections with Enbridge to maintain and potentially grow earnings across crude assets [46][50]