Energy Transfer Reports Second Quarter 2025 Results

Energy Transfer reported net income attributable to partners for the three months ended June 30, 2025 of $1.16 billion compared to $1.31 billion for the three months ended June 30, 2024. For the three months ended June 30, 2025, net income per common unit (basic) was $0.32.

Adjusted EBITDA for the three months ended June 30, 2025 was $3.87 billion compared to $3.76 billion for the three months ended June 30, 2024.

Distributable Cash Flow attributable to partners, as adjusted, for the three months ended June 30, 2025 was $1.96 billion compared to $2.04 billion for the three months ended June 30, 2024.

Growth capital expenditures in the second quarter of 2025 were $1.04 billion, while maintenance capital expenditures were $253 million.

Operational Highlights

• Energy Transfer's volumes continued to grow during the second quarter of 2025 compared to the second quarter of 2024.
  • Interstate natural gas transportation volumes were up 11%.
  • Midstream gathered volumes were up 10%, setting a new Partnership record.
  • Crude oil transportation volumes were up 9%, setting a new Partnership record.
  • Intrastate natural gas transportation volumes were up 8%.
  • NGL transportation volumes were up 4%, setting a new Partnership record.
  • NGL and refined products terminal volumes were up 3%, setting a new Partnership record.
  • NGL fractionated volumes were up 5%.
  • NGL exports were up 5%, setting a new Partnership record.
• In the second quarter of 2025, Energy Transfer placed its 200 MMcf/d Lenorah II Processing plant in the Midland Basin into service; the plant is currently running at full capacity.
• Energy Transfer recently placed its Nederland Flexport NGL Export Expansion Project into ethane and propane service and expects to begin ethylene service in the fourth quarter of this year. The project is expected to add up to 250,000 Bbls/d of total NGL export capacity at the Partnership's Nederland terminal.
• Energy Transfer also recently placed the 200 MMcf/d Badger Processing Plant into service. This project involved the relocation of a previously idle plant to the Delaware Basin.
• Energy Transfer also recently commissioned the second of eight, 10-megawatt natural gas-fired electric generation facilities in West Texas. Two more of these facilities are expected to be placed into service in 2025, with the remainder expected in service in 2026.

Strategic Highlights

• Energy Transfer announced today a 1.5 Bcf/d expansion of its Transwestern Pipeline. Transwestern's Desert Southwest Pipeline expansion will include a 516-mile, 42-inch natural gas pipeline that will connect the Permian Basin with markets in Arizona, New Mexico, and Texas, and is expected to be in service by the fourth quarter of 2029. The project is expected to cost approximately $5.3 billion, including $0.6 billion of Allowance for Funds Used During Construction ("AFUDC"), and is supported by significant, long-term commitments with investment grade counterparties.
• Energy Transfer recently reached FID on Phase II of its Hugh Brinson Pipeline, which will include the addition of compression. Upon completion, this bi-directional pipeline will have the ability to transport approximately 2.2 Bcf/d from west to east and also transport approximately 1 Bcf/d from east to west.
• Energy Transfer also recently reached FID on the construction of a new storage cavern at its Bethel natural gas storage facility. This project will double Energy Transfer's natural gas working storage capacity at the facility to over 12 Bcf.
• Southeast Supply Header, LLC recently approved an expansion to its SESH pipeline to serve growing power generation needs.
• In June 2025, Energy Transfer signed an incremental Sale and Purchase Agreement ("SPA") with Chevron U.S.A. Inc. ("Chevron") for additional LNG supply from its proposed Lake Charles LNG export facility. The 20-year agreement for 1.0 million tonnes per annum ("mtpa") increases Chevron's total contracted volume from Energy Transfer LNG to 3.0 mtpa, following the initial 2.0 mtpa agreement signed in December 2024.
• In May 2025, Energy Transfer entered into a 20-year LNG SPA with Kyushu Electric Power Company, Inc. related to the Lake Charles LNG project, to supply 1.0 mtpa of LNG.
• In April 2025, Energy Transfer entered into a Heads of Agreement with MidOcean Energy ("MidOcean") for the joint development of the Lake Charles LNG project, under which MidOcean would commit to fund 30% of the construction costs and be entitled to 30% of the LNG production.

Financial Highlights

• In July 2025, Energy Transfer announced a quarterly cash distribution of $0.33 per common unit ($1.32 annualized) for the quarter ended June 30, 2025, which is an increase of more than 3% compared to the second quarter of 2024.
• In May 2025, the Partnership redeemed $500 million aggregate principal amount of 6.75% Series F Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units using cash on hand and commercial paper borrowings.
• As of June 30, 2025, the Partnership's revolving credit facility had an aggregate $2.51 billion of available borrowing capacity.
• The Partnership now expects to be at or slightly below the lower end of its previously stated Adjusted EBITDA guidance range of $16.1 billion to $16.5 billion. The Partnership continues to expect its 2025 growth capital expenditures to be approximately $5 billion.

Energy Transfer benefits from a portfolio of assets with exceptional product and geographic diversity. The Partnership's multiple segments generate high-quality, balanced earnings with no single business segment contributing more than one-third of the Partnership's consolidated Adjusted EBITDA for the three months ended June 30, 2025. In addition, Energy Transfer generates approximately 40% of its Adjusted EBITDA from natural gas-related assets. The vast majority of the Partnership's segment margins are fee-based and therefore have limited commodity price sensitivity.

Conference call information:

The Partnership has scheduled a conference call for 3:30 p.m. Central Time/4:30 p.m. Eastern Time on Wednesday, August 6, 2025 to discuss its second quarter 2025 results and provide an update on the Partnership. The conference call will be broadcast live via an internet webcast, which can be accessed through www.energytransfercom and will also be available for replay on the Partnership's website for a limited time.

Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline and associated energy infrastructure. Energy Transfer's strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids ("NGL") and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 21% of the outstanding common units of Sunoco LP (NYSE:SUN), and the general partner interests and approximately 38% of the outstanding common units of USA Compression Partners, LP (NYSE:USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.

Sunoco LP (NYSE:SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico. SUN's midstream operations include an extensive network of approximately 14,000 miles of pipeline and over 100 terminals. This critical infrastructure complements SUN's fuel distribution operations, which serve approximately 7,400 Sunoco and partner branded locations and additional independent dealers and commercial customers. SUN's general partner is owned by Energy Transfer LP (NYSE:ET). For more information, visit the Sunoco LP website at www.sunocolp.com.

USA Compression Partners, LP (NYSE:USAC) is one of the nation's largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USAC partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USAC focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. For more information, visit the USAC website at www.usacompression.com.

Forward-Looking Statements

This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results, including Adjusted EBITDA, and impact current projections, including capital expenditures, are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

The information contained in this press release is available on our website at www.energytransfer.com.

The following analysis of segment operating results includes a measure of segment margin. Segment margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment margin is similar to the GAAP measure of gross margin, except that segment margin excludes charges for depreciation, depletion and amortization. Among the GAAP measures reported by the Partnership, the most directly comparable measure to segment margin is Segment Adjusted EBITDA; a reconciliation of segment margin to Segment Adjusted EBITDA is included in the following tables for each segment where segment margin is presented.

Transported volumes of gas on our Texas intrastate pipelines increased primarily due to more third-party transportation. Transported volumes reported above exclude volumes attributable to purchases and sales of gas for our pipelines' own accounts and the optimization of any unused capacity.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment decreased due to the net impact of the following:

• a decrease of $45 million in realized natural gas sales and other primarily due to lower optimization volumes with shifts to long-term third-party contracts from the Permian and narrower price spreads;
• a decrease of $11 million in transportation fees primarily due to the recovery in the prior period of certain disputed fees on our Texas system; and
• a decrease of $2 million in storage margin primarily due to lower storage optimization; partially offset by
• a decrease of $5 million in operating expenses primarily due to a decrease in maintenance projects costs; and
• an increase of $4 million in retained fuel margin primarily due to higher gas prices.

Transported volumes increased primarily due to more capacity sold and higher utilization on several of our major pipeline systems due to increased demand.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our interstate transportation and storage segment increased due to the net impact of the following:

• an increase of $70 million in segment margin primarily due to a $35 million negative impact in the prior period related to the conclusion of a rate case on our Panhandle system, a $33 million increase in transportation revenue from several of our interstate pipeline systems due to higher contracted volumes and a $4 million increase due to higher storage and liquids revenue; and
• an increase of $12 million in Adjusted EBITDA related to unconsolidated affiliates due to a $6 million increase from our Citrus joint venture, a $4 million increase from our Midcontinent Express Pipeline joint venture and a $2 million increase from our Southeast Supply Header pipeline joint venture; partially offset by
• an increase of $11 million in operating expenses primarily due to an increase in volume-driven expenses.

Gathered volumes increased primarily due to newly acquired assets, as well as additional and upgraded plants in the Permian region, partially offset by lower dry gas gathering in the Northeast and Ark-La-Tex regions. NGL production increased primarily due to recently acquired assets and increased Permian plant utilization.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment increased due to the net impact of the following:

• an increase of $176 million in segment margin primarily due to recently acquired assets and higher volumes in the Permian region; and
• an increase of $11 million in segment margin due to higher natural gas prices of $38 million, partially offset by lower NGL prices of $27 million; partially offset by
• a decrease of $13 million in segment margin due to lower dry gas volumes in the Northeast and Ark-La-Tex regions;
• an increase of $95 million in operating expenses primarily due to recently acquired assets and assets placed in service as well as higher employee costs; and
• an increase of $4 million in selling, general and administrative expenses due to an adjustment to the workers' compensation reserve in the prior period and higher corporate allocations.

NGL transportation volumes increased primarily due to higher volumes from the Permian region. The increase in transportation volumes also led to higher fractionated volumes at our Mont Belvieu NGL Complex.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment decreased due to the net impact of the following:

• a decrease of $78 million in marketing margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to lower gains from the optimization of hedged NGL and refined product inventories; and
• an increase of $7 million in selling, general and administrative expenses primarily due to increased costs from recently acquired assets; partially offset by
• an increase of $33 million in transportation margin primarily due to higher throughput and contractual rate escalations on our Mariner East and our Gulf Coast pipeline systems; and
• an increase of $12 million in fractionators and refinery services margin primarily due to higher throughput.

Crude oil transportation volumes were higher due to continued growth on our gathering systems and from assets contributed upon the recent formation of the ET-S Permian joint venture with Sunoco LP, partially offset by lower volumes on our Bakken Pipeline. Crude terminal volumes were lower primarily due to lower volumes received from our Bakken Pipeline system.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our crude oil transportation and services segment decreased due to the net impact of the following:

• a decrease of $46 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) due to decreased transportation revenue, primarily from our Bakken Pipeline system, partially offset by increases from assets contributed upon the formation of the ET-S Permian joint venture;
• an increase of $21 million in operating expenses primarily due to a $10 million increase from assets contributed upon the formation of the ET-S Permian joint venture, a $6 million increase in employee costs and a $5 million increase in expense projects; and
• an increase of $2 million in selling, general and administrative expenses primarily due to costs associated with the ET-S Permian joint venture.

The investment in Sunoco LP segment reflects the consolidated results of Sunoco LP.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our investment in Sunoco LP segment increased due to the net impact of the following:

• an increase of $12 million in segment margin (excluding unrealized gains and losses on commodity risk management activities and inventory valuation adjustments) primarily due to the acquisition of NuStar, which was acquired in May 2024 and therefore is only reflected for two months in the prior period. This increase was partially offset by a decrease of $50 million from Sunoco LP's deconsolidation of certain of NuStar's assets in connection with the formation of ET-S Permian effective July 1, 2024, as well as a $29 million decrease in fuel profit due to lower profit per gallon;
• an increase of $48 million in Adjusted EBITDA related to unconsolidated affiliates due to the formation of ET-S Permian; and
• a decrease of $85 million in selling, general and administrative expenses, excluding non-cash compensation expense, primarily related to one-time NuStar acquisition costs in 2024; partially offset by
• an increase of $13 million in operating expenses due to increased costs from the acquisition of NuStar, which was acquired in May 2024 and therefore is only reflected for two months in the prior period. This increase was partially offset by a decrease of $6 million from Sunoco LP's deconsolidation of certain of NuStar's assets in connection with the formation of ET-S Permian effective July 1, 2024.

The investment in USAC segment reflects the consolidated results of USAC.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our investment in USAC segment increased due to the net impact of the following:

• an increase of $10 million in segment margin primarily due to higher revenue-generating horsepower as a result of increased demand for compression services and higher market-based rates on newly deployed and redeployed compression units; partially offset by
• an increase of $4 million in operating expenses primarily due to an increase in employee costs associated with increased revenue-generating horsepower.

Segment Adjusted EBITDA. For the three months ended June 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our all other segment decreased due to the net impact of the following:

• a decrease of $48 million due to the intersegment elimination of Sunoco LP's 32.5% share of ET-S Permian, which is consolidated in our crude oil transportation and services segment and also reflected as an unconsolidated affiliate in our investment in Sunoco LP segment; partially offset by
• an increase of $9 million in our natural gas marketing business; and
• an increase of $4 million from our compressor packaging business.

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