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What were the key takeaways from Energy Transfer’s earnings call?

- **Permian Growth Driver**: +17% volumes, new plants add 750 MMcf/day processing
- **Capital Discipline**: 2025 capex $4.6B (vs. $5B), 2026 returns to $5B
- **Data Center Deals**: 800 MMcf/day (Oracle, Entergy, Fermi) with 25-year contracts
- **Pipeline Expansion**: Desert Southwest (1.5 Bcf/day), Hugh Brinson (1.5 Bcf/day) fully contracted
- **Storage Growth**: Bethel +6 Bcf for LNG-related demand
- **LNG Update**: No FID until 80% equity partners secured

**【Management Opening Remarks】**
- Q3 2025 adjusted EBITDA of $11.8 billion (+1% YoY), driven by Permian Basin volumes (+17%) and new processing plants (e.g., Lenorah II, Badger). 
- 2025 organic growth capital guidance reduced to $4.6 billion (from $5 billion), reflecting capital discipline.
- 2026 capex expected to return to $5 billion, with focus on natural gas segments (e.g., Desert Southwest pipeline expansion, Hugh Brinson Pipeline Phase 1). 
- 2025-2026 growth projects include: 
  - Desert Southwest (1.5 Bcf/day, fully contracted with 25-year deals)
  - Hugh Brinson Phase 1 (1.5 Bcf/day, 25-year contracts)
  - Bethel storage expansion (+6 Bcf)
  - Mustang Draw II (250 MMcf/day)
- 2025 data center deals: 800 MMcf/day (Oracle, Entergy, Fermi America), with 20+ Bcf/year pipeline capacity contracted for power plants and data centers.

**【CFO Financial Commentary】**
- Q3 2025 GAAP net income: $420 million
- Non-GAAP EPS: $1.08 (vs. $0.95 consensus)
- Operating expenses down 5% YoY due to cost control
- 2025-2026 pipeline expansions (e.g., Desert Southwest, Hugh Brinson) expected to generate mid-teen returns
- 2025-2026 crude segment growth: 100,000 bpd Canadian crude via Southern Illinois Connector (Enbridge partnership)
- 2025 Lake Charles LNG equity reduction to 20% (from 30%), with FID contingent on 80% equity partner commitments

**【Q&A Highlights】**
- **LNG Strategy**: No FID until 80% equity partners secured; 2025-2026 EPC costs favorable
- **Pipeline Conversions**: NGL to natural gas service (Permian Basin pipelines) expected to enhance margins
- **Storage Expansion**: Bethel storage (+6 Bcf) positioned for LNG-related demand
- **Crude Growth**: 250,000 bpd Canadian crude via Dakota Access/ETCOP
- **Data Center Pipeline**: 800 MMcf/day contracted, with 20+ Bcf/year pipeline capacity for power plants
- **Permian Gas Supply**: 12-15% annual growth needed to meet 2025-2026 pipeline announcements

Energy Transfer LP Common Units (ET) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ET

ET fundamentals

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