01—Abstract
Summary
Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Energy Transfer LP (ET) reported fourth quarter and full-year 2025 results on February 17, 2026.
Q4 2025 Adjusted EBITDA rose 8% year over year to $4.18 billiona (from $3.88 billion), and Distributable Cash Flow attributable to partners, as adjusted, increased to $2.04 billion (from $1.98 billion). Net income attributable to partners declined to $928 million from $1.08 billion, and basic net income per common unit was $0.25 versus $0.29, largely reflecting higher impairments, lower interest-related and other items, and the Q4 2024 timing benefit from hedge settlements. Full-year 2025 Adjusted EBITDA was $15.98 billion, up from $15.48 billion.
Growth momentum was broad: NGL fractionation, crude transportation, and NGL export volumes set or approached records, and Midstream gathered volumes grew 4%. Management raised its 2026 Adjusted EBITDA guidance to $17.45b–$17.85 billion from $17.3–$17.7 billion. The increase is attributed solely to USA Compression's acquisition of J-W Power Company, which closed January 12, 2026.
Growth capital spending for 2026 is still expected at $5.0c–$5.5 billion, primarily for natural gas network projects. Notable project activity includes the Desert Southwest pipeline expansion, now upsized to 2.3 Bcf/d at a cost of up to about $5.6 billion; two new Florida Gas Transmission projects; a 20-year Entergy Louisiana transportation agreement; and the start of natural gas deliveries to an Oracle data center in Abilene, Texas. Energy Transfer also suspended development of the Lake Charles LNG export project to focus capital on pipeline projects.
Balance sheet and distribution indicators are steady. The quarterly distribution was $0.3350d per common unit ($1.34 annualized), up more than 3% year over year.
Revolver availability was $2.12 billion of the $5.0 billion facility at year-end, and long-term debt rose to $68.3 billion from $59.8 billion, which investors should weigh alongside the growth plan. Roughly 40% of Adjusted EBITDA comes from natural gas-related assets, and most segment margins are fee-based.
02—Key points
Key Highlights
- Q4 2025 Adjusted EBITDA of $4.18B, up 8% YoY from $3.88B; full-year 2025 Adjusted EBITDA of $15.98B vs. $15.48B in 2024.
- Q4 2025 Distributable Cash Flow attributable to partners, as adjusted, of $2.04B, up from $1.98B; quarterly distribution of $0.3350 per unit ($1.34 annualized), up more than 3%.
- Net income attributable to partners fell to $928M from $1.08B, and basic EPS was $0.25 vs. $0.29, reflecting $277M in Q4 impairments and timing of hedge-related marketing margin.
- 2026 Adjusted EBITDA guidance raised to $17.45–$17.85B from $17.3–$17.7B, solely due to the USA Compression acquisition of J-W Power Company; 2026 growth capex unchanged at $5.0–$5.5B.
- Major growth projects: Desert Southwest expansion upsized to 2.3 Bcf/d (~$5.6B), two Florida Gas Transmission projects (Phase IX and South Florida), and a 20-year Entergy Louisiana agreement.
- Data center exposure: natural gas deliveries to Oracle's Abilene, Texas data center began January 2026, part of agreements totaling ~900 MMcf/d across three Oracle sites.
- Lake Charles LNG export project suspended in December 2025 to redirect capital toward pipeline projects; year-end revolver availability $2.12B, with long-term debt up to $68.3B from $59.8B.
03—Questions
Frequently Asked Questions
Did Energy Transfer's earnings grow in the fourth quarter of 2025?
Adjusted EBITDA and Distributable Cash Flow grew, but GAAP net income attributable to partners declined. Adjusted EBITDA rose 8% to $4.18B and DCF attributable to partners, as adjusted, rose to $2.04B from $1.98B. Net income attributable to partners fell to $928M from $1.08B, and basic EPS was $0.25 versus $0.29, driven by $277M of impairments and lower hedge-related marketing margin in NGL and refined products.
Why was 2026 Adjusted EBITDA guidance raised, and does it reflect organic growth?
The guidance rose by $150M at both ends, to $17.45–$17.85B from $17.3–$17.7B. Management attributes the entire increase to USA Compression's acquisition of J-W Power Company, which closed January 12, 2026. The company did not describe a change to its underlying organic outlook, so investors should view the raise as acquisition-driven.
Is the distribution sustainable, and how much capital is being deployed?
The distribution was $0.3350 per common unit ($1.34 annualized), and Q4 2025 DCF attributable to partners, as adjusted, of $2.04B covered the $1.15B of Q4 distributions to all partners roughly 1.8 times. Management plans $5.0–$5.5B of 2026 growth capital, mostly for natural gas network projects, while maintenance capex was $355M in Q4 2025 by the press release's accounting. Coverage depends on sustaining cash flow while funding this program, and debt rose to $68.3B, so leverage deserves monitoring.
What are the key growth drivers and recent project decisions?
Key drivers include the Desert Southwest pipeline expansion (2.3 Bcf/d, up to ~$5.6B), Florida Gas Transmission Phase IX (~$535M share) and South Florida project (~$110M share), the Entergy Louisiana Tiger Pipeline lateral, and Oracle data center supply. Energy Transfer also suspended the Lake Charles LNG export project in December 2025 to focus on pipelines it believes offer better risk/return.
How diversified and resilient are Energy Transfer's earnings?
Management states that no single segment contributed more than one-third of consolidated Adjusted EBITDA in Q4 or full-year 2025, and that about 40% of Adjusted EBITDA comes from natural gas-related assets. Most segment margins are fee-based with limited commodity price sensitivity. Some segments are more exposed to commodity prices, including NGL marketing, so quarterly results can still swing.
04—Continue