Energy Transfer Q3 Earnings Lag Estimates, Revenues Decline Y/Y

Energy Transfer ET reported third-quarter 2025 adjusted earnings of 28 cents per unit, which missed the Zacks Consensus Estimate of 33 cents by 15.2%. The bottom line also decreased 12.5% from the year-ago figure of 32 cents.

Total Revenues of ET

Revenues of $19.95 billion lagged the Zacks Consensus Estimate of $22.91 billion by 12.9%. Total revenues also dropped 3.9% from the year-ago figure of $20.77 billion.

Highlights of ET’s Q3 Results

Total costs and expenses were $17.80 billion, down 4.2% year over year. This was due to the lower cost of products sold and a decline in selling, general and administrative expenses.

Operating income totaled $2.15 billion, down 1.4% year over year.

Interest expenses, net of interest capitalized, amounted to $890 million, 7.5% higher than the prior-year level.

Energy Transfer is in the process of commissioning the third of eight 10-megawatt natural-gas-fired electric generation units in West Texas.

In August 2025, to meet the growing customer demand for reliable natural gas service, Energy Transfer announced plans to construct a new natural gas storage cavern at its Bethel storage facility near Dallas-Fort Worth. The project is expected to double the site’s working gas storage capacity to more than 12 billion cubic feet (BCF) and enter service in late 2028.

In September 2025, Energy Transfer signed agreements to expand its Price River Terminal in Utah, a project that will double the terminal’s export capacity for American Premium Uinta oil. The expansion will add new railcar loading infrastructure, a heated storage tank with roughly 120,000 barrels of capacity and two additional 6,000-foot storage unit tracks.

Ongoing Development Activities

In November 2025, Energy Transfer announced plans to build Mustang Draw II, a new natural gas processing plant in the Midland Basin with a capacity of 250 million cubic feet of gas per day (MMcf/d), along with related infrastructure. The facility is expected to enter service in the fourth quarter of 2026.

ET’s Financial Position

ET had current assets of $17.44 billion as of Sept. 30, 2025 compared with $14.20 billion as of Dec. 31, 2024.

As of Sept. 30, 2025, the firm had a long-term debt, less current maturities, of $63.1 billion compared with $59.75 billion as of Dec. 31, 2024.

As of Sept. 30, 2025, the partnership’s revolving credit facility had an aggregate $3.44 billion of available borrowing capacity.

Growth capital expenditures in the third quarter of 2025 totaled $1.14 billion, while maintenance capital expenditures amounted to $293 million.

ET’s Guidance

Energy Transfer expects its 2025 adjusted EBITDA between $16.1 billion and $16.5 billion.

For 2025, the firm anticipates its growth capital expenditures to be nearly $4.6 billion.

Energy Transfer expects to invest nearly $5 billion of growth capital in 2026.

ET’s Zacks Rank

Energy Transfer currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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