TLDR
- Energy Transfer ups payout, proving stability amid softer earnings.
- Record gas and NGL volumes fuel Energy Transfer’s 2025 growth.
- New Mustang Draw II plant to power Midland Basin expansion.
- Long-term deals tie Energy Transfer to U.S. data center growth.
- $5B 2026 capex plan cements Energy Transfer’s gas dominance.
Energy Transfer LP(ET) stock rose 2.18% to close at $16.91, following its latest quarterly financial report.
Energy Transfer LP, ET
The company increased its distribution and outlined robust infrastructure expansion plans. Despite a slight dip in earnings, operational strength and new projects continue to support long-term growth momentum.
Distribution Increase Signals Stability Amid Lower Earnings
Energy Transfer declared a quarterly distribution of $0.3325 per common unit, up over 3% from the prior year. This marked its commitment to returning capital while managing growth effectively. The annualized distribution now stands at $1.33 per unit.
Net income attributable to partners fell to $1.02 billion, down from $1.18 billion in the prior year. Adjusted EBITDA for the quarter dropped to $3.84 billion from $3.96 billion year-over-year. Distributable cash flow also declined slightly to $1.90 billion due to one-time items.
Energy Transfer maintained operational efficiency and cash generation despite short-term fluctuations. The partnership reported these figures for the quarter ended September 30, 2025. The decrease did not affect its ability to fund ongoing expansion and distributions.
Record-Breaking Volumes and Strategic Infrastructure Buildout
The company reported record highs across several transportation and export metrics during the third quarter of 2025. NGL terminal volumes rose 10%, while NGL transportation and export volumes increased by 11% and 13%, respectively. Both interstate and intrastate natural gas volumes climbed steadily.
Energy Transfer announced Mustang Draw II, a new 250 MMcf/d natural gas processing plant in the Midland Basin. The facility is expected online in Q4 2026 and will meet growing demand in West Texas. The company also expanded the Price River Terminal in Utah, doubling its APU oil export capacity.
The partnership commissioned the third of eight 10-megawatt natural gas-fired generation units in West Texas. These projects collectively strengthen Energy Transfer’s gas infrastructure. They also align with increasing national demand for reliable energy solutions.
Long-Term Agreements Secure Demand and Capital Spending
The company executed agreements to supply 900 MMcf/d of natural gas to three U.S. data centers, including two in Texas. These are long-term supply deals supported by existing pipeline networks and a new lateral under construction. Such projects reinforce Energy Transfer’s position in digital infrastructure.
Energy Transfer signed a 20-year transportation agreement with Entergy Louisiana for 250,000 MMBtu per day starting December 2028. This contract includes a future capacity expansion option. It complements ongoing efforts to boost firm transportation service reliability.
Capital spending remained strong, with $1.14 billion in growth and $293 million in maintenance expenditures this quarter. The company expects to invest $5 billion in 2026, mainly on gas-related projects. This spending underscores its strategy to expand its dominant U.S. energy footprint.
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