01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (NYSE: ET) reported a solid 2025 in its 10-K filed February 19, 2026: consolidated Adjusted EBITDA rose 3% to $15.98 billiona (from $15.48 billion) and net income fell 13% to $5.71 billion, largely because 2024 included a $586 million one-time gain on Sunoco LP's West Texas asset sale and because D&A and interest expense rose with acquisitions.
Growth was led by the midstream, interstate transportation and Sunoco LP segments, while intrastate transportation and crude oil segments declined. Operating cash flow was $10.15 billionb, against $8.37 billion of investing outflows and $4.73 billion of distributions to common unitholders. The balance sheet is larger and more levered.
Total debt reached $68.33 billionc, up from $59.76 billion, driven by the Parkland acquisition by Sunoco LP (closed October 31, 2025) and the 2024 WTG Midstream deal. Management reports a consolidated leverage ratio of 3.21x under its credit agreement, well inside the 5.00x covenant, and states it is in compliance with all debt covenants. Investors should note that about $3.49 billion of senior notes due by end-2026 are classified as long-term based on refinancing intent, and that early-2026 refinancing activity was substantial.
Looking forward, management expects 2026 growth capital expenditures of $5.0 to $5.5 billiond, mainly for natural gas and NGL projects, and anticipates higher Adjusted EBITDA in 2026 from new projects and recent acquisitions (Sunoco LP's TanQuid, USAC's J-W Power). Key risks include regulatory exposure at FERC (oil pipeline index, Panhandle rate case), litigation (Rover penalties, Ohio and Oklahoma matters, a Twin Oaks release lawsuit), Lake Charles LNG suspension (which triggered a $256 million impairment), and the Warren family's controlling voting position (about 27%).
02—Key points
Key Highlights
- Consolidated Adjusted EBITDA up 3% to $15.98 billion in 2025, driven by midstream (+$254M), Sunoco LP (+$590M) and interstate transportation (+$108M), partly offset by lower crude oil (-$235M) and intrastate (-$145M) results.
- Net income fell 13% to $5.71 billion, reflecting the absence of the 2024 $586M Sunoco LP West Texas gain, higher D&A ($5.68B) and higher interest expense ($3.47B).
- Total debt rose to $68.33 billion from $59.76 billion after the Parkland acquisition; reported leverage ratio is 3.21x versus a 5.00x covenant maximum.
- Operating cash flow of $10.15 billion covered $6.20 billion of capital expenditures and $4.73 billion of distributions to partners, though financing needs remained significant.
- 2026 outlook calls for $5.0-5.5 billion of growth capex, with Adjusted EBITDA expected to increase from new pipeline and processing projects and recent acquisitions.
- Lake Charles LNG export project was suspended in December 2025, resulting in a $256 million fixed-asset impairment; several offtake agreements were terminated.
- Quarterly distribution on common units was raised to $0.3350 per unit (paid February 19, 2026), up from $0.3325, continuing a steady incremental increase.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Energy Transfer LP kept $0.05.
- Revenue$85.54B100.0%
- Cost of revenue−$63.49B74.2%
- Gross profit$22.04B25.8%
- Operating costs−$13.01B15.2%
- Operating income$9.03B10.6%
- Interest, other & tax−$4.59B5.4%
- Net income$4.43B5.2%
Where FY2025 revenue went
$85.54B- Cost of revenue: $63.49B, 74% of revenue
- Other operating costs: $11.83B, 14% of revenue
- Net income: $4.43B, 5.2% of revenue
- SG&A: $1.18B, 1.4% of revenue
- Interest, other & tax: $4.59B, 5.4% of revenue
Kept 5.2% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $85.54B$82.67B | +3.5% |
| Cost of Revenue | $63.49B$61.98B | +2.5% |
| Gross Profit | $22.04B$20.70B | +6.5% |
| SG&A Expenses | $1.18B$1.18B | +0.3% |
| Operating Expenses | $76.51B$73.53B | +4.0% |
| Operating Income | $9.03B$9.14B | −1.2% |
| Interest Expense | $3.47B$3.13B | +11.2% |
| Net Income | $4.43B$4.81B | −7.9% |
05—Questions
Frequently Asked Questions
How did Energy Transfer's profitability change in 2025?
Adjusted EBITDA increased 3% to $15.98 billion, but net income declined 13% to $5.71 billion. The decline mainly reflects a $586 million gain Sunoco LP recorded in 2024 on its West Texas asset sale, which did not recur, plus higher depreciation and interest costs from recent acquisitions.
Is Energy Transfer's debt load a concern for investors?
Total debt increased to $68.33 billion, largely from the Parkland acquisition. Management reports a 3.21x leverage ratio against a 5.00x covenant limit and says it is in compliance with all debt covenants. Investors should monitor the roughly $3.49 billion of notes maturing by end-2026, which management intends to refinance, and rising interest expense, which reached $3.47 billion.
Why was the Lake Charles LNG project suspended?
In December 2025, management suspended development of the Lake Charles LNG export project to focus capital on natural gas pipeline projects it views as offering better risk-adjusted returns. The suspension led to termination of several LNG offtake agreements and a $256 million impairment. Management remains open to a third party developing the project and would consider providing pipeline capacity under a long-term agreement.
What drives the distribution outlook for unitholders?
Distributions depend on Available Cash, which the general partner determines after reserves. The quarterly common unit distribution rose to $0.3350 per unit for Q4 2025, and total distributions to limited partners were $4.55 billion in 2025. Because the partnership is a holding company, cash flow depends on distributions from subsidiaries such as Sunoco LP and USAC, and distributions are not guaranteed.
Who controls Energy Transfer, and how does that affect investors?
Kelcy Warren owns 81.2% of the general partner and holds Energy Transfer Class A Units, giving him an effective voting interest of about 27% when combined with his common units. Unitholders have limited ability to remove the general partner, and the general partner has conflict-of-interest latitude. Investors should weigh this governance structure against the partnership's operating scale and distribution profile.
06—Continue