Energy Transfer Q1 Earnings Beat Estimates, Revenues Down Y/Y

Energy Transfer ET reported first-quarter 2025 adjusted earnings of 36 cents per unit, which beat the Zacks Consensus Estimate of 33 cents by 9.1%. The bottom line also increased 12.5% from the year-ago figure of 32 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total Revenues of ET

Revenues of $21 billion missed the Zacks Consensus Estimate of $23.4 billion by 11%. Total revenues also decreased 2.9% from the year-ago figure of $21.63 billion.

Highlights of ET’s Q1 Results

Total costs and expenses were $18.5 billion, down 3.7% year over year. This was due to lower cost of products sold.

Operating income totaled $2.5 billion, up 4.7% year over year.

Interest expense, net of interest capitalized, amounted to $809 million, 11.1% higher than the prior-year level.

In February 2025, Energy Transfer commissioned the first of eight, 10-megawatt natural gas-fired electric generation facilities to support the partnership’s operations in Texas.

During the first quarter, Energy Transfer commenced construction of Phase I of the Hugh Brinson Pipeline and secured all pipeline steel, which is currently being rolled in U.S. pipe mills.

In February 2025, Energy Transfer entered into a long-term agreement with Cloudburst Data Centers, Inc. (CloudBurst) to provide natural gas to CloudBurst’s flagship AI-focused data center development.

In February 2025, Energy Transfer approved the construction of an additional natural gas processing plant in the Midland Basin. The Mustang Draw plant will have a processing capacity of nearly 275 MMcf/d and is expected to be in service in the second quarter of 2026.

ET’s Financial Position

As of March 31, 2025, the firm had a long-term debt, less current maturities of $59.78 billion compared with $59.75 billion as of Dec. 31, 2024.

As of March 31, 2025, the partnership’s revolving credit facility had an aggregate $4.37 billion of available borrowing capacity.

For the three months ended March 31, 2025, the partnership invested approximately $955 million in growth capital expenditures.

ET’s Guidance

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

For 2025, the firm expects its growth capital expenditures to be approximately $5 billion. Maintenance capital expenditures for 2025 are expected to be approximately $1.1 billion.

ET’s Zacks Rank

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

Recent Releases

Clearway Energy Inc. CWEN recorded first-quarter 2025 earnings of 3 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 25 cents by 112%.

CWEN’s long-term (three to five years) earnings growth rate is 38.28%. The Zacks Consensus Estimate for 2025 sales is pinned at $1.52 billion, implying a year-over-year increase of 10.6%.

Constellation Energy Corporation CEG reported first-quarter 2025 earnings of $2.14 per share, in line with the Zacks Consensus Estimate.

CEG’s long-term earnings growth rate is 12.4%. The Zacks Consensus Estimate for 2025 sales is pinned at $23.59 billion.

ONEOK Inc. OKE reported first-quarter 2025 operating earnings per share of $1.04, which missed the Zacks Consensus Estimate of $1.23 by 15.4%.

OKE’s long-term earnings growth rate is 9.44%. The Zacks Consensus Estimate for 2025 earnings is pinned at $5.33 per share.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research