Energy Transfer Q4 net income falls to $928M, raises 2026 EBITDA outlook
Energy Transfer reported Q4 net income of $928 million, down from $1.08 billion year-over-year, while adjusted EBITDA rose 8% to $4.18 billion and distributable cash flow increased to $2.04 billion. It approved $1.4 billion in growth capex, increased quarterly distribution by 3%, and raised 2026 EBITDA guidance to $17.45–17.85 billion.
1. Fourth Quarter Financial Results
Energy Transfer posted net income attributable to partners of $928 million for Q4 2025, down from $1.08 billion in Q4 2024. Adjusted EBITDA climbed 8% to $4.18 billion, distributable cash flow rose to $2.04 billion, and the partnership spent $1.40 billion on growth capex alongside $355 million in maintenance capex.
2. Operational Volume Growth
Volumes across segments showed broad gains: NGL and refined product terminals volumes increased 12%, NGL exports grew 12%, crude oil transportation hit a record 6% rise, and both interstate and intrastate natural gas transport volumes climbed 4% and 3%, respectively. NGL fractionation volumes set a new partnership record with 3% growth.
3. Strategic Project Developments
Construction began on the fully contracted Mustang Draw II 275 MMcf/d Midland Basin plant, targeting Q4 2026 service. Energy Transfer also advanced two Florida Gas Transmission expansions with combined costs of $645 million, upsized the Desert Southwest pipeline project to 2.3 Bcf/d at $5.6 billion, and suspended Lake Charles LNG development.
4. 2026 Outlook and Distributions
The partnership raised its 2026 Adjusted EBITDA target to $17.45–17.85 billion, driven by the USA Compression acquisition, and plans $5.0–5.5 billion in growth capital. A 3% increase in quarterly distribution to $0.3350 per unit was announced, supported by $2.12 billion of revolver capacity.