Energy Transfer LP's Net Income Decreases 11.45% in Q2 2025

Energy Transfer LP reported a net income of $1.16 billion for Q2 2025, a 11.45% decrease from $1.31 billion in Q2 2024. Revenue for the quarter was $19.24 billion, down 7.17% from $20.73 billion in the prior-year period. The reported net income per common unit (basic) was $0.32, matching the analyst EPS estimate. The company's revenue of $19.24 billion missed the analyst estimate of $22.53 billion.

Operational Highlights and Volume Growth

The company experienced significant volume growth across several key areas during Q2 2025 compared to Q2 2024. Interstate natural gas transportation volumes increased by 11%, while midstream gathered volumes saw a 10% rise, achieving a new Partnership record. Crude oil transportation volumes also reached a new record, up 9%. Intrastate natural gas transportation volumes grew by 8%, and NGL transportation volumes increased by 4%, also setting a new Partnership record. NGL and refined products terminal volumes were up 3%, marking another new record for the Partnership, and NGL fractionated volumes increased by 5%. Additionally, NGL exports rose by 5%, setting a new Partnership record.

Infrastructure Development and Expansion Projects

In the second quarter of 2025, Energy Transfer placed its 200 MMcf/d Lenorah II Processing plant in the Midland Basin into service, which is currently operating at full capacity. The Nederland Flexport NGL Export Expansion Project was recently brought into ethane and propane service, with ethylene service expected to commence in the fourth quarter of this year, adding up to 250,000 Bbls/d of total NGL export capacity. The 200 MMcf/d Badger Processing Plant, relocated to the Delaware Basin, was also recently commissioned. Furthermore, the second of eight 10-megawatt natural gas-fired electric generation facilities in West Texas was commissioned, with two more expected in 2025 and the remainder in 2026.

Strategic Initiatives and Future Outlook

Energy Transfer announced a 1.5 Bcf/d expansion of its Transwestern Pipeline, including a 516-mile, 42-inch natural gas pipeline connecting the Permian Basin to markets in Arizona, New Mexico, and Texas, projected to be in service by Q4 2029 at an estimated cost of $5.3 billion. The Partnership also reached Final Investment Decision (FID) on Phase II of its Hugh Brinson Pipeline, which will add compression, and on the construction of a new storage cavern at its Bethel natural gas storage facility, doubling its natural gas working storage capacity to over 12 Bcf. Southeast Supply Header, LLC approved an expansion to its SESH pipeline to meet growing power generation needs. In June 2025, Energy Transfer signed an incremental Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. for an additional 1.0 mtpa of LNG supply from its proposed Lake Charles LNG export facility, bringing Chevron's total contracted volume to 3.0 mtpa. In May 2025, a 20-year LNG SPA was signed with Kyushu Electric Power Company, Inc. for 1.0 mtpa. In April 2025, a Heads of Agreement was reached with MidOcean Energy for the joint development of the Lake Charles LNG project, with MidOcean funding 30% of construction costs and receiving 30% of LNG production.

Financial Position and Guidance

In July 2025, Energy Transfer declared a quarterly cash distribution of $0.33 per common unit, representing an increase of more than 3% compared to Q2 2024. In May 2025, the Partnership redeemed $500 million aggregate principal amount of 6.75% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units using cash on hand and commercial paper borrowings. As of June 30, 2025, the Partnership's revolving credit facility had $2.51 billion of available borrowing capacity. The Partnership now anticipates its 2025 Adjusted EBITDA to be at or slightly below the lower end of its previous guidance range of $16.1 billion to $16.5 billion. Growth capital expenditures for 2025 are still expected to be approximately $5 billion.