Energy Transfer LP Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance

  • Adjusted EBITDA was 3.9 billion dollars, up from 3.8 billion dollars in Q2 2024, reflecting modest year-over-year growth.
  • Distributable cash flow was approximately 2 billion dollars.
  • Organic growth capital spending totaled 2 billion dollars in the first half of 2025.
  • Management expects full-year adjusted EBITDA to finish at or slightly below the low end of prior guidance of 16.1 billion dollars to 16.5 billion dollars due to Bakken weakness, slower dry gas recovery, low gas optimization spreads, and softer-than-expected Permian crude growth.

Segment Highlights

NGL and Refined Products
  • Adjusted EBITDA was 1 billion dollars, down from 1.1 billion dollars in Q2 2024.
  • Higher throughput on Mariner East, Gulf Coast pipelines, and fractionators was offset by lower optimization gains and weaker blending margins.
Midstream
  • Adjusted EBITDA increased to 768 million dollars from 693 million dollars in Q2 2024.
  • Growth driven by higher Permian legacy volumes, improved plant utilization, and WTG asset contributions.
Crude Oil
  • Adjusted EBITDA was 732 million dollars, down from 801 million dollars in Q2 2024.
  • Higher volumes on several pipelines and new Permian JV contributions were offset by lower Bakken transportation revenues.
Interstate Natural Gas

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Operator: Good afternoon, and welcome to the Energy Transfer Second Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tom Long. Please go ahead. Thomas E. Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer Second Quarter 2025 Earnings Call. I'm also joined today by Mackie McCrea and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this afternoon. As a reminder, our earnings release contains a thorough MD&A that goes through the segment results in detail, and we encourage everyone to take a look at the release as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our Form 10-Q for the quarter ended June 30, 2025, which we expect to file tomorrow, Thursday, August 7. I'll also refer to adjusted EBITDA and distributable cash flow, or DCF, both of which are non-GAAP financial measures. You'll find a reconciliation of our non-GAAP measures on our website. So let's start t

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