01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (NYSE: ET) reported a strong 2024, with consolidated Adjusted EBITDA rising about 13% to $15.48 billiona from $13.70 billion, and net income up roughly 24% to $6.57 billion.
The increase was driven mainly by recently acquired assets (WTG Midstream, NuStar via Sunoco LP, Crestwood), higher volumes in the Permian and NGL systems, and a $586 millionb one-time gain on Sunoco LP's sale of West Texas convenience stores, which was partly offset by a $627 million non-operating litigation loss recorded in 2023. Cash generation was solid, with operating cash flow of $11.51 billion versus $9.56 billion in 2023, but leverage and capital commitments increased. Consolidated debt rose to about $59.76 billion, and the Partnership reported a leverage ratio of 3.12x against a 5.00x covenant ceiling.
The 2025 capital plan calls for roughly $5.0 billionc of growth and $1.1 billion of maintenance capex, and management expects to fund growth largely with debt and retained cash. Common unit distributions were raised each quarter during 2024, reaching $0.325 per unit for the fourth quarter, which is payable in February 2025. Investors should weigh the strong fee-based earnings base and acquisition-driven growth against higher debt, ongoing regulatory and litigation exposure (including the Dakota Access EIS, Rover FERC penalty proceedings, and MTBE and PCB matters), and uncertainty around LNG export approvals for the Lake Charles project under the evolving federal policy environment.
02—Key points
Key Highlights
- Consolidated Adjusted EBITDA rose 13% to $15.48 billion in 2024, up from $13.70 billion in 2023.
- Net income increased about 24% to $6.57 billion, helped by a $586 million gain on the sale of Sunoco LP's West Texas assets.
- Operating cash flow reached $11.51 billion, compared with $9.56 billion in 2023.
- Major 2024 acquisitions included WTG Midstream (about 6,000 miles of Midland Basin gathering) and the NuStar acquisition by Sunoco LP, plus the ET-S Permian joint venture.
- Total consolidated debt was about $59.76 billion at year-end, with a 3.12x leverage ratio versus a 5.00x covenant limit.
- The 2025 capital plan includes about $5.0 billion of growth capex and $1.1 billion of maintenance capex.
- Quarterly common unit distribution rose to $0.325, the 2024 declaration paid in February 2025, continuing a steady multi-year increase.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Energy Transfer LP kept $0.06.
- Revenue$82.67B100.0%
- Cost of revenue−$61.98B75.0%
- Gross profit$20.70B25.0%
- Operating costs−$11.56B14.0%
- Operating income$9.14B11.1%
- Interest, other & tax−$4.32B5.2%
- Net income$4.81B5.8%
Where FY2024 revenue went
$82.67B- Cost of revenue: $61.98B, 75% of revenue
- Other operating costs: $10.38B, 13% of revenue
- Net income: $4.81B, 5.8% of revenue
- SG&A: $1.18B, 1.4% of revenue
- Interest, other & tax: $4.32B, 5.2% of revenue
Kept 5.8% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $82.67B$78.59B | +5.2% |
| Cost of Revenue | $61.98B$60.54B | +2.4% |
| Gross Profit | $20.70B$18.05B | +14.7% |
| SG&A Expenses | $1.18B$985.00M | +19.5% |
| Operating Expenses | $73.53B$70.29B | +4.6% |
| Operating Income | $9.14B$8.29B | +10.2% |
| Interest Expense | $3.13B$2.58B | +21.2% |
| Net Income | $4.81B$3.94B | +22.3% |
05—Questions
Frequently Asked Questions
What drove the growth in Energy Transfer's earnings in 2024?
Adjusted EBITDA increased $1.79 billion, led by the midstream, crude oil transportation and Sunoco LP segments, which benefited from recent acquisitions and the ET-S Permian joint venture. Higher volumes in the Permian and NGL pipelines also contributed, while interstate transportation earnings declined modestly.
How is Energy Transfer's balance sheet positioned?
Consolidated debt increased to about $59.76 billion, mainly to fund acquisitions. The Five-Year Credit Facility had $2.21 billion of available capacity, and the leverage ratio of 3.12x sits well inside the 5.00x covenant. Management also noted about $3.08 billion of senior notes due in 2025 that it classifies as long-term because it intends to refinance them.
Is the distribution to unitholders secure?
Energy Transfer distributes all Available Cash quarterly under its partnership agreement, and the distribution has increased each quarter during 2024. However, distributions are not guaranteed and depend on cash flow, reserves set by the general partner, and debt service needs. The Partnership also issues preferred units and may issue additional equity, which could dilute common unitholders.
What are the main regulatory and litigation risks for investors?
Key risks include the pending Dakota Access Pipeline environmental impact statement, FERC enforcement proceedings against Rover related to the Stoneman House and Tuscarawas River matters, MTBE groundwater lawsuits, PCB remediation claims in New Mexico, and rate-regulation changes affecting interstate pipelines. Environmental accruals totaled about $278 million at year-end 2024.
What is the outlook for the Lake Charles LNG export project?
The liquefaction project has FERC approval and long-term offtake agreements with Shell and Chevron, but it still needs a DOE non-FTA export authorization and a final investment decision. The DOE lifted its moratorium in January 2025 following a presidential executive order, though the regulatory path and timing remain uncertain.
06—Continue