third quarter 2026
Filed Nov 3, 2026Energy Transfer reported third quarter 2026 net income attributable to partners of $1.21 billion, Adjusted EBITDA of $5.03 billion, and raised its full-year 2026 Adjusted EBITDA outlook to $19.7 billion to $19.9 billion.
Third-quarter net income attributable to partners, Adjusted EBITDA and Distributable Cash Flow attributable to partners, as adjusted, each increased from the prior-year quarter. Growth was supported by higher volumes, recently in-service assets and acquisitions, while the Partnership raised its 2026 Adjusted EBITDA outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $37.10B | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $99.21B | – | – |
| Cost of products sold, three months ended September 30, 2026GAAP | $30.53B | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $1.78B | – | – |
| Depreciation, depletion and amortization, three months ended September 30, 2026GAAP | $1.60B | – | – |
| Selling, general and administrative, three months ended September 30, 2026GAAP | $405M | – | – |
| Impairment loss, three months ended September 30, 2026GAAP | $2M | – | – |
| Total costs and expenses, three months ended September 30, 2026GAAP | $34.32B | – | – |
| Operating income, three months ended September 30, 2026GAAP | $2.78B | – | – |
| Interest expense, net of interest capitalized, three months ended September 30, 2026GAAP | −$944M | – | – |
| Equity in earnings of unconsolidated affiliates, three months ended September 30, 2026GAAP | $112M | – | – |
| Income before income tax expense, three months ended September 30, 2026GAAP | $2.00B | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $187M | – | – |
| Net income, three months ended September 30, 2026GAAP | $1.81B | – | – |
| Net income attributable to partners, three months ended September 30, 2026GAAP | $1.21B | – | – |
| Common Unitholders' interest in net income, three months ended September 30, 2026GAAP | $1.14B | – | – |
| Net income per common unit, basic, three months ended September 30, 2026GAAP | $0.33 | – | – |
| Net income per common unit, diluted, three months ended September 30, 2026GAAP | $0.33 | – | – |
| Weighted average number of units outstanding, basic, three months ended September 30, 2026GAAP | 3.44B | – | – |
| Weighted average number of units outstanding, diluted, three months ended September 30, 2026GAAP | 3.47B | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $99.21B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $9.34B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $6.32B | – | – |
| Net income attributable to partners, nine months ended September 30, 2026GAAP | $4.55B | – | – |
| Net income per common unit, basic, nine months ended September 30, 2026GAAP | $1.27 | – | – |
| Net income per common unit, diluted, nine months ended September 30, 2026GAAP | $1.26 | – | – |
| Adjusted EBITDA (consolidated), three months ended September 30, 2026non-GAAP | $5.03B | – | 31% |
| Adjusted EBITDA (consolidated), nine months ended September 30, 2026non-GAAP | $15.03B | – | – |
| Distributable Cash Flow (consolidated), three months ended September 30, 2026non-GAAP | $3.39B | – | – |
| Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted, three months ended September 30, 2026non-GAAP | $2.52B | – | 33% |
| Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted, nine months ended September 30, 2026non-GAAP | $7.81B | – | – |
| Growth capital expenditures, third quarter of 2026other | $1.3B | – | – |
| Maintenance capital expenditures, third quarter of 2026other | $284M | – | – |
| Total assets, September 30, 2026GAAP | $149.4B | – | – |
| Long-term debt, less current maturities, September 30, 2026GAAP | $68.84B | – | – |
| Total equity, September 30, 2026GAAP | $49.65B | – | – |
| Funds available under Five-Year Revolving Credit Facility, September 30, 2026other | $4.41B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Intrastate transportation and storageTransported volumes of gas on Texas intrastate pipelines increased primarily due to new third-party transportation contracts tied to the recently in-service Hugh Brinson Pipeline and its downstream assets. | $1.08B | – | – |
| Interstate transportation and storageTransported volumes increased primarily due to more capacity sold and higher utilization on several systems due to higher demand. | $620M | – | – |
| MidstreamGathering and processing volumes increased in most regions, primarily from new and upgraded plants in the Permian region and dry gas gathering in the Northeast and Ark-La-Tex regions. | $3.91B | – | – |
| NGL and refined products transportation and servicesNGL transportation, fractionation, and terminal throughput volumes increased due to higher volumes from the Permian region, as well as increased NGL exports. | $7.63B | – | – |
| Crude oil transportation and servicesCrude oil transportation volumes were higher due to higher volumes on the Texas pipeline system, Bakken gathering systems, and Mid-continent pipelines, partially offset by lower Bakken Pipeline and Bayou Bridge volumes. | $9.41B | – | – |
| Investment in Sunoco LPSegment Adjusted EBITDA increased primarily due to recent acquisitions, partly offset by increased operating and selling, general and administrative costs from recently acquired businesses. | $18.03B | – | – |
| Investment in USACSegment margin increased primarily due to the J-W Power Acquisition and increases in USAC's legacy business. | $358M | – | – |
| All otherSegment Adjusted EBITDA benefited from a decrease in the intersegment elimination of Sunoco LP's 32.5% share of ET-S Permian, partly offset by declines in dual drive compression and natural gas marketing. | $911M | – | – |
full year 2026 outlook
- NoteAdjusted EBITDA: $19.7 billion to $19.9 billion
- NoteGrowth capital: $5.4 billion to $5.6 billion
Capital returns
- Quarterly cash distribution of $0.3425 per common unit ($1.37 annualized) for the quarter ended September 30, 2026, an increase of more than 3% compared to the third quarter of 2025.
- The quarterly cash distribution was the Partnership's twentieth consecutive increase to its quarterly cash distribution.
- Redeemed $900 million aggregate principal amount of 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units in August 2026 using proceeds from its recent junior subordinated notes offering.
- Total distributions to be paid to partners were $1,181 million for the three months ended September 30, 2026, compared to $1,142 million for the three months ended September 30, 2025.
What drove it
- Intrastate transportation volumes were up 14%, setting a new Partnership record.
- Midstream gathered volumes were up 6%, setting a new Partnership record.
- NGL transportation volumes were up 6%.
- NGL exports were up 9%.
- NGL fractionation volumes were up 5%.
- Phase I of the Hugh Brinson Pipeline was placed into full service on September 1, 2026, ahead of schedule.
- The 275 MMcf/d Mustang Draw II processing plant was placed into service in the Midland Basin in October.
- The Investment in Sunoco LP segment's Adjusted EBITDA increased to $1,049 million from $489 million, primarily due to recent acquisitions.
- The Investment in USAC segment's Adjusted EBITDA increased to $198 million from $160 million, primarily due to the J-W Power Acquisition and growth in USAC's legacy business.
Concerns
- Energy Transfer anticipates that $100 million in realized derivative losses in future periods will partially offset favorable market conditions cited in both NGL and crude marketing activities.
- Crude oil terminal volumes were lower for the three-month period due to lower customer throughput at Gulf Coast Terminals.
- The acquisition of Vaquero Midstream LLC is expected to close in the fourth quarter of 2026, subject to regulatory approval and customary closing conditions.
- The South Mississippi Pipeline Project remains subject to a binding open season, with final pipeline sizing and capacity to be determined after the open season.
What to watch
- Closing of the Vaquero Midstream LLC acquisition, expected in the fourth quarter of 2026.
- Completion of Hugh Brinson Pipeline Phase II, which remains scheduled for the first quarter of 2027.
- Bear II, a 200 MMcf/d cryogenic processing plant expected to be in service in the third quarter of 2027.
- The South Mississippi Pipeline Project, projected to enter service in 2030 at an expected cost of approximately $1.6 billion.
- Frac X at Mont Belvieu, expected to have capacity of 200 MBbls/d and be in service in the first half of 2029.
- Execution against expected 2026 growth capital investment of $5.4 billion to $5.6 billion and approximately $7 billion expected for 2027.
Balance sheet and cash flow
- Total assets were $149,386 million at September 30, 2026, compared to $141,286 million at December 31, 2025.
- Long-term debt, less current maturities, was $68,838 million at September 30, 2026, compared to $68,308 million at December 31, 2025.
- Total equity was $49,651 million at September 30, 2026, compared to $49,010 million at December 31, 2025.
- The Five-Year Revolving Credit Facility had a facility size of $5,000 million and funds available of $4,406 million at September 30, 2026. The maturity date is April 11, 2029.
- Distributable Cash Flow attributable to the partners of Energy Transfer, as adjusted, was $2,522 million for the three months ended September 30, 2026, compared to $1,895 million for the prior-year period.
Analysis
Energy Transfer delivered higher third-quarter earnings across its principal reported measures. Revenue was $37,103 million, operating income was $2,781 million, net income was $1,814 million, and net income attributable to partners was $1,207 million, compared with $1,019 million in the prior-year quarter. Adjusted EBITDA increased 31% to $5,031 million, while Distributable Cash Flow attributable to partners, as adjusted, increased 33% to $2,522 million.
The reported operating data point to continued throughput growth. Intrastate transportation volumes rose 14%, midstream gathered volumes rose 6%, NGL transportation volumes rose 6%, NGL exports rose 9%, and NGL fractionation volumes rose 5%. The Partnership cited the Hugh Brinson Pipeline, new and upgraded Permian plants, dry-gas gathering, higher contracted volumes and increased system utilization as contributors across its transportation and midstream operations.
Segment performance was broad, with every listed operating segment except All Other reporting higher Segment Adjusted EBITDA. Investment in Sunoco LP contributed $1,049 million versus $489 million, primarily reflecting recent acquisitions. NGL and refined products transportation and services contributed $1,224 million versus $1,054 million, supported by marketing, fractionation and terminal margins. Crude oil transportation and services contributed $871 million versus $746 million, while management stated that favorable crude marketing conditions are expected to be partially offset by $100 million in realized derivative losses in future periods.
Capital allocation remains directed toward organic projects and acquisitions. Third-quarter growth capital expenditures were $1.30 billion and maintenance capital expenditures were $284 million. The Partnership announced the approximately $2.6 billion Vaquero Midstream LLC bolt-on acquisition, subject to closing conditions, and outlined multiple projects including Bear II, the South Mississippi Pipeline Project and Frac X. It also announced a quarterly cash distribution of $0.3425 per common unit and redeemed $900 million of Series H preferred units.
Management raised its full-year 2026 Adjusted EBITDA outlook to $19.7 billion to $19.9 billion from the previously stated range of $18.8 billion to $19.1 billion. The Partnership expects to invest $5.4 billion to $5.6 billion in growth capital during 2026 and approximately $7 billion during 2027. Balance-sheet liquidity included $4,406 million of funds available under the Five-Year Revolving Credit Facility at September 30, 2026, while long-term debt, less current maturities, was $68,838 million.
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- Non-GAAP gross margin was not reported.
- Cash and cash equivalents were not separately reported.
- Cash flow from operating activities was not reported.
- Free cash flow was not reported.
- No share repurchase amount was reported.
- No prior-quarter comparisons were reported for the consolidated income statement metrics.
- No revenue, gross margin, operating expense or tax-rate guidance was reported.
- No named executive quotes were included in the filing text.
- Prior outlook section was not provided; therefore, no actual-versus-prior-guidance comparisons are included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.