Energy Transfer Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Energy Transfer ET reported fourth-quarter 2025 adjusted earnings of 25 cents per unit, which missed the Zacks Consensus Estimate of 34 cents by 26.5%. The bottom line also decreased 13.8% from the year-ago figure of 29 cents.

Full-year 2025 adjusted earnings were $1.21 per share, down 5.5% from the previous year’s reported figure of $1.28.

Total Revenues of ET

Revenues of $25.32 billion lagged the Zacks Consensus Estimate of $26.02 billion by 2.7%. Total revenues rose 29.6% from the year-ago figure of $19.54 billion.

Full-year 2025 revenues totaled $85.54 billion, up 3.5% from the previous year’s level of $82.67 billion.

Highlights of ET’s Q4 Results

Total costs and expenses were $23.24 billion, up 34.7% year over year. This increase was due to the higher cost of products sold, operating expenses, depreciation, depletion and amortization, as well as a rise in selling, general and administrative expenses and impairment losses.

Operating income totaled $2.08 billion, down 8.9% year over year.

Interest expenses, net of interest capitalized, amounted to $910 million, up 12.8% from the prior-year level.

In November 2025, Energy Transfer entered into a 20-year firm natural gas transportation agreement with Entergy Louisiana to provide capacity supporting new economic development in North Louisiana. The project involves expanding the Tiger Pipeline through the construction of a 12-mile lateral with an expected capacity of 250,000 million British thermal units per day (MMBtu/d). Gas supply will be sourced from Energy Transfer’s extensive pipeline network, which connects to all major U.S. producing basins.

In December 2025, Energy Transfer expanded the transportation capacity of Transwestern Pipeline’s proposed Desert Southwest expansion to address rising customer demand. The mainline diameter will be increased from 42 inches to 48 inches, lifting capacity to as much as 2.3 billion cubic feet per day (Bcf/d) and raising the project cost to approximately $5.6 billion. Backed by long-term contracts, the project is designed to support ongoing population growth and economic expansion across Arizona and New Mexico. Natural gas supplies will be sourced from Energy Transfer’s core assets in the Permian Basin.

Ongoing Development Activities at ET

Energy Transfer has begun construction of Mustang Draw II, a new natural gas processing plant in the Midland Basin with a capacity of 275 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 $18.23 billion as of Dec. 31, 2025, compared with $14.20 billion as of Dec. 31, 2024.

As of Dec. 31, 2025, the firm had a long-term debt, less current maturities, of $68.31 billion compared with $59.75 billion as of Dec. 31, 2024.

As of Dec. 31, 2025, the partnership’s revolving credit facility had an aggregate $2.12 billion of available borrowing capacity.

Growth capital expenditures in the fourth quarter of 2025 totaled $1.4 billion, while maintenance capital expenditures amounted to $355 million.

ET’s Guidance

Energy Transfer now expects its 2026 adjusted EBITDA to be between $17.45 billion and $17.85 billion compared with the previous range of $17.3 billion to $17.7 billion.

Energy Transfer expects to invest $5-$5.5 billion of growth capital in 2026.

ET’s Zacks Rank

Energy Transfer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Sector Releases

National Fuel Gas Company NFG reported first-quarter fiscal 2026 adjusted operating earnings of $2.06 per share, which beat the Zacks Consensus Estimate of $1.91 by 7.85%. The bottom line also increased 24.1% from the year-ago quarter’s reported figure of $1.66.

NFG reported sales of $651.5 million, which beat the Zacks Consensus Estimate of $647 million by 0.7%. The top line increased 18.6% from the prior-year recorded figure of $549.5 million.

Plains All American Pipeline, L.P. PAA reported fourth-quarter 2025 adjusted earnings of 40 cents per unit, which lagged the Zacks Consensus Estimate of 47 cents by 14.9%. In the year-ago quarter, the firm reported earnings of 42 cents.

Net sales of $10.57 billion missed the Zacks Consensus Estimate of $11.55 billion by 8.5%. The top line decreased 12.2% from the year-ago quarter’s figure of $12.04 billion.

CNX Resources Corporation CNX reported fourth-quarter 2025 operating earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 70.0%. The bottom line increased 19.3% from 57 cents in the year-ago quarter.

The company reported revenues of $419 million, which topped the Zacks Consensus Estimate of $373 million by 12.3%. The top line rose 8.6% from the prior-year quarter’s $386 million.

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

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