Energy Transfer LP Q4 FY2025 earnings call

· Full year 2025 saw record volumes across interstate midstream NGL and crude segments, record NGL exports from Nederland and Marcus Hook terminals. Q4 2025 generated adjusted EBITDA of ~$4.2 billion vs ~$3.9 billion in Q4 2024, DCF ~$2 billion consistent with Q4 2024. Recorded records in NGL fractionation throughput, LPG exports, Nederland terminal volumes and crude transportation throughput in Q4. Spent ~$4.5 billion on organic growth capital in 2025. · Major growth projects: Upsized Desert Southwest Pipeline Project mainline diameter to 48 inches, expected to be in service by Q4 2029; Hugh Brinson pipeline construction ~75% complete, Phase 1 expected in Q4 2026, Phase 2 in Q1 2027; Florida Gas Transmission completed open seasons for Phase IX and South Florida projects; Bethel natural gas storage cavern project on track to double storage capacity by late 2028; Oracle natural gas delivery to data centers, Oklahoma intrastate power team added connections to new power plant loads, construction of natural gas-fired electric generation facility ongoing; Mustang Draw I and II Permian processing plants expected in service in 2026; Nederland terminal Flexport NGL export expansion ramping up; Project with Enbridge to provide capacity for Canadian crude through Dakota Access pipeline expected FID by mid-2026; Suspended Lake Charles LNG project, exploring other uses for the terminal

For the fourth quarter: NGL and refined products adjusted EBITDA was $1.1 billion, consistent with Q4 2024; Midstream adjusted EBITDA was $720 million vs $705 million in Q4 2024; Crude oil adjusted EBITDA was $722 million vs $760 million in Q4 2024; Interstate natural gas segment adjusted EBITDA was $523 million vs $493 million in Q4 2024; Intrastate natural gas segment adjusted EBITDA was $355 million vs $263 million in Q4 2024. Full year 2025: Adjusted EBITDA was nearly $16 billion vs $15.5 billion in 2024 (up 3%); DCF attributable to partners was $8.2 billion vs $8.4 billion in 2024

· 2026 organic growth capital guidance range is $5 billion - $5.5 billion excluding SUN and USA Compression. · 2026 adjusted EBITDA expected to range between $17.45 billion and $17.85 billion vs previous range of $17.3 billion - $17.7 billion, change due to USA Compression's acquisition of J-W Power Company. · Target long-term annual distribution growth rate of 3% to 5%. · Target leverage target of 4x to 4.5x EBITDA during period of investment opportunities

Q: Encouraging to see continued commercialization momentum across natural gas asset base, talk about key drivers and creative solutions with Hugh Brinson example.

A: Mackie McCrea talked about DSW project, Florida Gas pipeline system, Hugh Brinson pipeline's ability to move volume in multiple directions, NGL business growth, and commercialization around pipelines for various uses like data centers and power plants.

Q: Follow-up on NGL front, how much third-party downstream Permian Y-grade volumes across system.

A: Dylan Bramhall said about 60% of own volumes, 40% third-party, affiliate volume number growing.

Q: Last quarter talked about converting pipe from NGL to gas service, where stands.

A: Mackie McCrea said it's an ongoing process of evaluating assets to use them more profitably, like converting pipelines for different services.

Q: Broadly talk about asset performance during winter weather and volatility in gas market.

A: Marshall McCrea said team performed excellently, industry more prepared, saw volumes come off but kept customers whole.

Q: Heard early volumes on Hugh Brinson, with Blackcomb pushed to Q4, will volumes go to third-party customers.

A: Mackie McCrea said confident of early volumes, but not certain on amount and destination.

Q: How think about limit for Canadian heavy crude on DAPL asset.

A: Adam Arthur said will take care of Bakken producers, looking at possibilities as Bakken volumes decline.

Q: Peers giving multiyear EBITDA growth expectations, how think about medium-term growth for Energy Transfer.

A: Dylan Bramhall said long-term distribution growth rate of 3%-5% is strategically set.

Q: Talk about recontracting on Mariner system.

A: Mackie McCrea said highly confident in maintaining and growing volume throughput on Mariner system.

Q: Follow up on Desert Southwest project pro forma economics and DAPL tariffs.

A: Mackie McCrea talked about DSW project expected to be good rate of return, Adam Arthur said DAPL open season result good, rates in line with market.

Q: On DSW, when need to make call on sizing and key milestones.

A: Marshall McCrea said E&C team ahead of schedule, secured pipe and compression, permits and construction ahead of schedule.

Q: Lake Charles, what could end up looking like.

A: Marshall McCrea said looking at repurposing assets, could be for NGLs, crude oil terminal or other commodities.

Q: Focus on storage opportunities related to data centers.

A: Marshall McCrea said have over 230 Bcf of storage and expanding to provide 99.99% reliability for data centers.

Q: Data centers upsize orders, can supply more gas.

A: Marshall McCrea said extremely well positioned to supply more gas as needed.

Q: On Waha, open capacity to capture spreads and fractionation rates.

A: Marshall McCrea said have about 160,000 Mcf a day open capacity, NGL transportation and fracking segment competitive.

Q: Annual growth CapEx over next few years.

A: Thomas Long said hard to give guidance but projects are strong, Dylan Bramhall said governing by leverage targets and strong growth creating debt capacity.

Q: Project with Enbridge, what to get to FID.

A: Adam Arthur said in commercialization phase, continuing discussions with customers in Canada.

Q: Oracle data center, gas flowing today and capacity before Hugh Brinson.

A: Marshall McCrea said confidential but well positioned to supply gas.

Q: Hugh Brinson backhaul contracts, amount of gas to Carthage.

A: Marshall McCrea said nobody can predict, but can take least priced gas to most needed markets.

Q: New growth projects related to power, flavor of projects and if number grown.

A: Mackie McCrea said chasing many opportunities, projects range in size from interconnects to bigger pipelines, Adam Arthur added scope varies.

Q: Regulatory order impact on prior and current period rates, detail and future earnings uplift.

A: Adam Arthur and Dylan Bramhall explained about the regulatory order leading to one-time impacts, with net benefit and expected recoupment in first quarter