10-QPeriod: Q1 FY2026

Energy Transfer LP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:ETET-PI

Summary

Energy Transfer LP (ET) reported strong financial results for the first quarter of 2026, with Net Income increasing by 15% to $1.98 billion and Adjusted EBITDA growing by 20% to $4.94 billion year-over-year. This growth was driven by significant performance improvements across multiple segments, notably intrastate transportation and storage, NGL and refined products transportation, and investment in Sunoco LP, bolstered by recent acquisitions and favorable market conditions. The company successfully completed two key acquisitions in early 2026: the J-W Power Company acquisition by USAC for approximately $912 million and the TanQuid acquisition by Sunoco LP for approximately $239 million, which are expected to contribute to future growth. Liquidity remains robust, with $3.38 billion in cash provided by operating activities. The company also managed its debt effectively, refinancing existing indebtedness and issuing new senior notes. Energy Transfer maintained its quarterly cash distribution for common unitholders at $0.3375 per unit. Despite the positive operational and financial performance, the company faces ongoing legal proceedings and regulatory scrutiny, particularly related to environmental matters and pipeline operations, which are being actively managed.

Financial Highlights

39 data points
Beta

Revenue

$27.77B

23.8% Gross Margin

Net Income

$1.25B

4.5% Net Margin

Total Assets

$147.48B

Cash & Equivalents

$951.00M

Free Cash Flow

$3.38B

Financial Statements
Beta
Revenue$27.77B
Cost of Revenue$21.15B
Gross Profit$6.62B
SG&A Expenses$361.00M
Operating Expenses$24.79B
Operating Income$2.98B
Interest Expense$947.00M
Net Income$1.25B

Key Highlights

  • 1Net income increased by 15% to $1.98 billion for the three months ended March 31, 2026, compared to the prior year period.
  • 2Adjusted EBITDA grew by 20% to $4.94 billion for the three months ended March 31, 2026, compared to the prior year period, driven by strong performance across multiple segments.
  • 3Completed the strategic acquisition of J-W Power Company by USAC for approximately $912 million and the TanQuid acquisition by Sunoco LP for approximately $239 million in early 2026.
  • 4Generated $3.38 billion in cash flow from operating activities for the three months ended March 31, 2026, indicating strong operational cash generation.
  • 5Managed debt effectively by issuing new senior notes and refinancing existing debt, maintaining a strong liquidity position.
  • 6Announced a quarterly cash distribution of $0.3375 per common unit for the quarter ended March 31, 2026.
  • 7Continued to experience growth in NGL transportation, fractionation, and terminal volumes, driven by higher volumes from the Permian region and increased NGL exports.

Frequently Asked Questions

Energy Transfer's revenue growth in the first quarter of 2026 was primarily driven by strong performance across its segments, including increased throughput volumes in NGL and refined products transportation, higher crude oil transportation volumes, and contributions from recent acquisitions like J-W Power Company and TanQuid. Favorable market conditions, such as wider basis differentials and price spreads in certain segments, also contributed positively.

Energy Transfer managed its debt effectively by issuing new senior notes totaling $3 billion in January 2026 to refinance existing indebtedness and repay commercial paper. The company also redeemed certain senior notes. Liquidity remains strong, supported by $3.38 billion in cash flow from operating activities and significant availability under its credit facilities, totaling $3.45 billion under the Five-Year Credit Facility as of March 31, 2026.

The acquisitions of J-W Power Company by USAC and TanQuid by Sunoco LP were completed in early 2026. The J-W Power acquisition significantly expanded USAC's compression services fleet, while the TanQuid acquisition broadened Sunoco LP's fuel terminal network in Europe. Both are expected to contribute positively to Energy Transfer's growth and financial performance in the future.

Energy Transfer is involved in several ongoing legal proceedings and regulatory matters. Notable areas include environmental liabilities, regulatory reviews by FERC concerning rates and pipeline certifications, and various litigation, including the Dakota Access Pipeline matter and antitrust litigation. While the company is actively managing these issues and believes its provisions for potential liabilities are adequate, these matters represent potential risks that could impact future financial results.