Energy Transfer LP (ET) Reports Mixed Results For Q3

Energy Transfer LP (NYSE:ET) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 5, the company reported financial results for the third quarter of fiscal 2025.

Revenue declined 3.9% year-over-year to $19.95 billion, while net income was down 13.9% from Q3 FY24 to $1.02 billion, translating to a profit per share of $0.28, which missed expectations by 5 cents.

Adjusted EBITDA stood at $3.84 billion against $3.96 billion in the prior year’s period. Distributable cash flow was reported at $1.90 billion, dipping from $1.99 billion during the same period last year. Energy Transfer LP (NYSE:ET) said that several one-time items led to the decreases, such as an additional $43 million to settle a prior tax obligation.

Despite the earnings miss, there were plenty of positives from Energy Transfer LP (NYSE:ET)’s operational performance during the quarter, with several record volumes, including terminal volumes for NGL and refined products, NGL transportation, NGL exports, and midstream gathering.

During the earnings call, co-CEO Thomas Long also mentioned the company’s policy to pursue more long-term contracts with third-parties, which are expected to generate stable revenues at better rates over more extended periods. He disclosed that Energy Transfer LP (NYSE:ET) now has multiple agreements with Oracle to provide natural gas to the latter’s data centers in the United States.

On November 4, Energy Transfer LP (NYSE:ET) announced a 20-year agreement with Entergy Louisiana to transport natural gas to North Louisiana. The supply will begin in February 2028 and run through January 2048. As part of the deal, the company will transport 250,000 MMBtu per day, with the option to expand capacity to address rising demand.

Energy Transfer LP (NYSE:ET) is a large and diversified midstream energy company in North America, with a strategic footprint across major U.S. production basins.

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