Energy Transfer Q4 EPS Misses by 26%, Raises 2026 EBITDA Guidance to $17.45–17.85B
Energy Transfer reported Q4 adjusted earnings of $0.25 per unit, missing consensus by 26.5% and down 13.8% year over year, while revenues climbed 29.6% to $25.32 billion but trailed estimates by 2.7%. The company raised its 2026 adjusted EBITDA guidance to $17.45–17.85 billion from $17.3–17.7 billion.
1. Q4 Financial Results
Energy Transfer posted adjusted Q4 earnings of $0.25 per unit, missing the consensus by 26.5% and falling 13.8% year over year. Revenues rose 29.6% to $25.32 billion but trailed estimates by 2.7%, while total costs climbed 34.7% to $23.24 billion, driving operating income down 8.9% to $2.08 billion and net interest expense up 12.8% to $910 million.
2. Project Developments
In November, the partnership entered a 20-year firm gas transportation agreement with Entergy Louisiana to build a 12-mile lateral on the Tiger Pipeline with 250,000 MMBtu/d capacity. In December, Energy Transfer expanded the Transwestern Desert Southwest project by increasing mainline diameter from 42 to 48 inches to boost capacity to 2.3 Bcf/d at an estimated cost of $5.6 billion, underpinned by long-term contracts.
3. Financial Position and Capital Expenditures
As of December 31, 2025, Energy Transfer held $18.23 billion in current assets and $68.31 billion in long-term debt net of current maturities, with $2.12 billion available under its revolving credit facility. During Q4, the company invested $1.4 billion in growth capital and $355 million in maintenance capital.
4. 2026 Guidance and Growth Plans
Energy Transfer increased its full-year 2026 adjusted EBITDA forecast to $17.45–17.85 billion from $17.3–17.7 billion and plans $5–5.5 billion in growth capital spending. Construction is underway on Mustang Draw II, a Midland Basin processing plant with 275 MMcf/d capacity, expected to commence operations in Q4 2026.