01—Abstract
Summary
Summary of the 10-Q filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (ET) reported its financial results for the quarter and nine months ended September 30, 2025.
The company generated total revenues of $19.95 billiona for the three months and $60.22 billion for the nine months, reflecting a decrease compared to the prior year periods. Net income for the quarter was $1.29 billion, down from $1.43 billion in the prior year, impacted by a decrease in Adjusted EBITDA, higher depreciation, depletion, and amortization, and increased interest expenses. For the nine months, net income was $4.47 billion, down from $5.12 billion in the prior year, with the prior year benefiting from a significant gain on the sale of assets by Sunoco LP.
Despite the reported decrease in net income, the company's operational segments, particularly Midstream and Investment in Sunoco LP, showed growth in Adjusted EBITDA for the nine-month period. The company maintained compliance with its debt covenants, and its liquidity remains robust with substantial availability under its credit facilities.
02—Key points
Key Highlights
- Total revenues for the nine months ended September 30, 2025, were $60.22 billion, a decrease from $63.13 billion in the same period last year.
- Net income for the third quarter of 2025 was $1.29 billion, down from $1.43 billion in the third quarter of 2024.
- Consolidated Adjusted EBITDA for the nine months was $11.80 billion, an increase from $11.60 billion in the prior year, driven by growth in the Midstream and Investment in Sunoco LP segments.
- The company reported $63.096 billion in long-term debt, less current maturities, as of September 30, 2025, an increase from $59.752 billion at the end of 2024.
- Sunoco LP completed the acquisition of Parkland on October 31, 2025, a significant strategic move that is expected to expand its international fuel distribution and marketing operations.
- Energy Transfer declared a quarterly cash distribution of $0.3325 per common unit for the quarter ended September 30, 2025.
- Capital expenditures for the nine months ended September 30, 2025, were $4.38 billion, an increase from $2.87 billion in the prior year, reflecting ongoing growth and maintenance investments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Energy Transfer LP kept $0.05.
- Revenue$19.95B100.0%
- Cost of revenue−$14.56B73.0%
- Gross profit$5.39B27.0%
- Operating costs−$3.24B16.2%
- Operating income$2.15B10.8%
- Interest, other & tax−$1.13B5.7%
- Net income$1.02B5.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $19.95B$20.77B | −3.9% |
| Cost of Revenue | $14.56B$15.61B | −6.7% |
| Gross Profit | $5.39B$5.16B | +4.5% |
| SG&A Expenses | $268.00M$297.00M | −9.8% |
| Operating Expenses | $17.80B$18.59B | −4.2% |
| Operating Income | $2.15B$2.18B | −1.4% |
| Interest Expense | $890.00M$828.00M | +7.5% |
| Net Income | $1.02B$1.18B | −13.9% |
05—Questions
Frequently Asked Questions
What were the key drivers for the decrease in net income for the third quarter?
The decrease in net income for the third quarter was primarily driven by a $121 million decrease in Adjusted EBITDA, a $116 million increase in depreciation, depletion, and amortization, a $62 million increase in interest expense, and an unfavorable $52 million impact from unrealized gains and losses on commodity risk management activities. These were partially offset by a favorable $207 million impact from inventory valuation adjustments.
How has the company's debt situation changed?
The company's total debt, less current maturities, increased from $59.75 billion at the end of 2024 to $63.10 billion as of September 30, 2025. This increase is largely attributable to debt issuances for refinancing existing indebtedness and to support acquisitions. The company stated it was in compliance with all debt covenants.
What is the significance of the Parkland acquisition?
The acquisition of Parkland by Sunoco LP, completed on October 31, 2025, is a major strategic move that significantly expands Sunoco LP's international presence in fuel distribution, marketing, and convenience retail. While the accounting for the acquisition is still being finalized, it positions Sunoco LP as a leading international fuel distributor.
How did the different operating segments perform in terms of Adjusted EBITDA?
For the nine months ended September 30, 2025, consolidated Adjusted EBITDA increased by 2% to $11.80 billion. Key segment performances included strong growth in Midstream (up 11%) and Investment in Sunoco LP (up 38%), which offset declines in Intrastate Transportation and Storage (down 22%) and Crude Oil Transportation and Services (down 8%). NGL and Refined Products Transportation and Services remained relatively flat.
06—Continue