Energy Transfer (ET) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2025 was $4.10 billion, up 6% year-over-year, driven by strong midstream, NGL, and Sunoco LP segment performance, as well as robust NGL exports.

• Net income attributable to partners reached $1.32 billion for Q1 2025, up 7% year-over-year, with basic net income per common unit at $0.37.

• Distributable cash flow attributable to partners was $2.31 billion for Q1 2025.

• Major acquisitions announced include Sunoco LP's $9.1 billion Parkland and $540 million TanQuid deals, both expected to close in H2 2025.

• Quarterly cash distribution per unit increased over 3% year-over-year to $0.3275.

Financial highlights

• Revenue for Q1 2025 was $21.02 billion, down from $21.63 billion year-over-year; operating income rose to $2.49 billion.

• Growth capital expenditures for Q1 2025 totaled $955 million; maintenance capex was $165–166 million.

• Leverage ratio at 3.24x, with total debt at $59.78 billion as of March 31, 2025.

• Operating cash flow was $2.92 billion, down from $3.77 billion, mainly due to working capital changes.

• Favorable inventory valuation adjustments at Sunoco LP added $61 million to net income.

Outlook and guidance

• 2025 adjusted EBITDA guidance remains $16.1–$16.5 billion, with growth capital expenditures projected at approximately $5 billion.

• Most growth projects, including Flexport NGL export expansion and Permian processing plants, are on track for completion in 2025–2026, with earnings ramping up in 2026–2027.

• Sunoco LP and USAC plan additional growth and maintenance capex, with Sunoco LP targeting at least $400 million in growth and $150 million in maintenance.