Energy Transfer (ET) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2025 was $3.87 billion, up year-over-year, with record operational volumes in midstream, crude oil, NGL transportation, and exports.

• Net income attributable to partners was $1.16 billion for Q2 2025, down from $1.31 billion year-over-year; revenue was $19.24 billion, down 7%.

• Major projects advanced include the Desert Southwest/Transwestern Pipeline, Hugh Brinson Pipeline, and Flexport NGL export expansion, with phased completions through 2029.

• Commissioned Lenorah II and Badger processing plants and expanded export capacity, supporting Permian and NGL market growth.

• Signed long-term LNG and data center supply agreements, and announced major acquisitions including Sunoco LP's $9.1B Parkland deal.

Financial highlights

• Q2 2025 Adjusted EBITDA: $3.87B; distributable cash flow: $1.96B; net income: $1.16B; revenue: $19.24B.

• Growth capital expenditures for H1 2025: $2.0B; maintenance capex: $418M; quarterly distribution increased to $0.33 per unit, up over 3% year-over-year.

• Leverage ratio as of Q2 2025 was 3.27x; long-term debt was $60.75B; available borrowing capacity was $2.51B.

• Adjusted EBITDA margin for Q2 2025 was approximately 20%.

• Cash flow from operations for H1 2025 was $5.68B, down from $6.04B year-over-year.

Outlook and guidance

• 2025 growth capital guidance is ~$5B, with nearly half allocated to natural gas projects; full-year Adjusted EBITDA expected at or slightly below the lower end of $16.1B–$16.5B guidance.

• Major pipeline and storage projects scheduled for phased completion through 2029, with earnings growth expected from Flexport, Permian processing, and Hugh Brinson Pipeline in 2026-2027.

• Sunoco LP and USAC plan additional capex for 2025; distribution growth target remains 3%-5% as a floor for long-term growth.