Energy Transfer LP Q3 FY2025 earnings call

• Financial Performance: Adjusted EBITDA for Q3 2025 was $3.84 billion, down from $3.96 billion in the prior year; year-to-date adjusted EBITDA was $11.8 billion vs $11.6 billion in 2024. DCF attributable to partners was approximately $1.9 billion. Organic growth capital spent in the first 9 months of 2025 was ~$3.1 billion. - Segment-Specific: NGL and refined products saw higher throughput; midstream excluded a one-time claim for growth; crude oil had growth in some pipelines but lower transportation revenues; interstate natural gas had a tax resolution impact; intrastate natural gas affected by volume growth and contract shifts. - Key Projects: Desert Southwest pipeline expansion fully contracted with potential capacity increase; Hugh Brinson Pipeline Phase 1 on track for 2026, Phase 2 planned; Bethel natural gas storage expansion to double capacity; data center and power plant agreements signed with major companies; Permian processing plants in service with expansions; crude oil terminal expansion underway; Lake Charles LNG in advanced discussions for equity and offtake agreements.

In the third quarter of 2025, Energy Transfer's NGL and refined products segment achieved an adjusted EBITDA of $1.1 billion, compared to $1 billion in the same period of the previous year. The midstream segment reported an adjusted EBITDA of $751 million, versus $816 million in Q3 2024. Excluding a $70 million one-time business interruption claim from the prior year, midstream would have shown growth due to higher volumes in the Permian Basin. The crude oil segment had an adjusted EBITDA of $746 million, down from $768 million in Q3 2024, with growth in some pipelines offset by lower transportation revenues. The interstate natural gas segment recorded an adjusted EBITDA of $431 million, versus $460 million in Q3 2024, with a $43 million tax resolution impacting the result. The intrastate natural gas segment reported an adjusted EBITDA of $230 million, compared to $329 million in Q3 2024, affected by volume growth and a shift to more long-term contracts.

Energy Transfer expects to be slightly below the lower end of the guidance range of $16.1 billion to $16.5 billion. The company is well-positioned with growth projects backed by high-quality counterparties, focusing on capital discipline to ensure projects meet risk/return criteria.

• Market conditions could impact contract rates for various projects. - Uncertainties remain with Lake Charles LNG FID, dependent on securing 80% equity partners and converting nonbinding heads of agreement to binding ones. - Potential challenges in project execution and meeting risk/return thresholds for the LNG project.

Q: Clarify if guidance includes Parkland acquisition?

A: Dylan Bramhall states that guidance does not include Parkland, and the company expects to be slightly below the initial guide without Parkland.

Q: More detail on Lake Charles LNG contracts and FID timing?

A: Mackie McCrea explains that Lake Charles LNG FID is dependent on securing 80% equity partners and converting nonbinding heads of agreement to binding ones, with work ongoing to reach this milestone.

Q: Financial impact of data center deals?

A: Marshall McCrea mentions that data centers are an impetus, with a significant amount of the $25 billion revenue from demand pull including data centers, and Hugh Brinson being a key profitable asset.

Q: Consideration of converting NGL pipe to natural gas service?

A: Mackie McCrea says Energy Transfer constantly evaluates assets, with NGL contracts approaching cliffs, and considering conversion for potentially higher revenue.

Q: Crude oil agreements with Enbridge and earnings impact?

A: Mackie McCrea notes that teaming with Enbridge is beneficial as it aligns well with contract roll-offs, helping to keep Dakota Access full.

Q: Growth backlog and CapEx?

A: Thomas Long states that Energy Transfer has a great backlog of high-returning projects, with $5 billion planned for organic growth capital in 2026, but specific numbers are not provided.

Q: Desert Southwest pipeline upsizing?

A: Mackie McCrea says Desert Southwest pipeline is fully contracted with potential to increase capacity, working on decisions regarding pipe size in the next few weeks.

Q: Gas storage expansion and rates?

A: Marshall McCrea says gas storage rates are high, with Bethel expansion being unique, and storage being a key area with potential for more expansions.

Q: Capital outlay for data center supply projects?

A: Marshall McCrea explains that many data center projects have low capital, often embedded in existing or new projects.

Q: Lake Charles LNG FID certainty and timing?

A: Mackie McCrea states that Lake Charles LNG will not proceed until 80% equity partners are secured, with work ongoing to meet this requirement.

Q: Hugh Brinson supply and demand breakout?

A: Mackie McCrea says Hugh Brinson started as demand pull, now balanced with producer push and demand pull.

Q: 6 Bs of new gas deals and margin?

A: Dylan Bramhall says the 6 Bs of new deals are incremental, made up of different contracts with a strong weighted average fee.

Q: Data center connections to power grid expediting?

A: Marshall McCrea says if data center connections to power grid are expedited, it would boost pipeline business, beneficial for natural gas demand