Energy Transfer (ET) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, May 5, 2026 astatine 9:43 AM CDT 21 min read

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Date

Tuesday, May 5, 2026 astatine 9 a.m. ET

Call participants

• Co-Chief Executive Officer — Marshall McCrea

• Chief Financial Officer — Dylan Bramhall

• Co-Chief Executive Officer — Tom Long

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Full Conference Call Transcript

Let america commencement with our fiscal results for the archetypal 4th of 2026. We generated adjusted EBITDA of astir $4.9 cardinal compared to astir $4.1 cardinal for the archetypal 4th of past year. DCF attributable to the partners of Energy Transfer, arsenic adjusted, was astir $2.7 cardinal compared to astir $23 cardinal for the archetypal 4th of 2025. These results were supported by beardown operations, including grounds midstream gathering volumes, NGL fractionation volumes, NGL export volumes, and crude lipid proscription volumes for the quarter. For 2026, we spent astir $1.5 cardinal connected integrated maturation capital, chiefly successful the intrastate, NGL and refined products, midstream, and interstate segments, excluding Sun and USA Compression CapEx. Turning to our 2026 guidance. As a effect of our beardown archetypal 4th show crossed our segments arsenic good arsenic revised expectations for the remainder of 2026, we present expect our 2026 adjusted EBITDA to scope betwixt astir $18.2 cardinal and $18.6 cardinal compared to the erstwhile scope of astir $17.45 cardinal to $17.85 billion. This includes a bushed of astir $500 cardinal and the seizure of our full-year optimization people successful the archetypal quarter, arsenic good arsenic expectations for continued outperformance for the equilibrium of the year. Now turning to integrated maturation superior guidance. We present expect 2026 integrated maturation superior to beryllium betwixt astir $5.5 cardinal and $5.9 cardinal compared to our erstwhile guidance of astir $5.0 cardinal to $5.5 billion, excluding Sun and USAC. This summation is chiefly a effect of the summation of respective caller maturation projects, including the operation of the caller Springerville lateral disconnected our existing Transwestern pipeline, the operation of pipelines and metre stations to supply earthy state to assorted powerfulness plants and information halfway sites successful Oklahoma and Arkansas, accelerated timing connected longer-term projects similar Desert Southwest and FGT superior spend, and gathering strategy and compression buildout successful the midstream segment, chiefly successful the Permian Basin associated with caller declaration and acreage dedication extensions. I volition supply further details astir these projects aboriginal successful the call. Beyond these projects, we proceed to person a important backlog of opportunities that are expected to enactment aboriginal growth. Now turning to our results by conception for the archetypal quarter, starting with NGL and refined products. Adjusted EBITDA was astir $1.2 cardinal compared to astir $978 cardinal for the archetypal 4th of 2025. We saw higher throughput crossed our Gulf Coast pipeline operations and grounds show astatine our Mont Belvieu fractionators. In addition, caller chilling capableness placed into work past twelvemonth contributed to a $50 cardinal summation successful earnings, arsenic good arsenic grounds export volumes from our Nederland terminal successful the archetypal quarter. This much than made up for fog delays experienced successful the archetypal 4th of 2025. During the archetypal 4th of 2026, we realized higher gains of $65 cardinal owed to the timing of the colony of NGL and refined merchandise inventory hedges, which offset losses realized successful the archetypal 4th of 2025. Results for the 4th besides included an summation of astir $50 cardinal from higher premiums from the merchantability of propane and butane for some export and home supply, arsenic good arsenic astir a $25 cardinal summation owed to inventory writedown losses realized successful the archetypal 4th of past year. For Midstream, adjusted EBITDA was astir $887 cardinal compared to astir $925 cardinal for the archetypal 4th of 2025. Base concern net accrued chiefly owed to maturation successful the Permian Basin wherever we saw volumes up 8% related to caller and upgraded processing plants brought online since the archetypal 4th of past year. In addition, we saw a $25 cardinal alteration owed to little NGL and earthy state prices compared to past year. As a reminder, the archetypal 4th of past twelvemonth included the designation of gross of $160 cardinal from Winter Storm Uri. For the crude lipid segment, adjusted EBITDA was astir $869 cardinal compared to astir $742 cardinal for the archetypal 4th of 2025. During the quarter, we saw continued maturation crossed respective of our crude lipid pipeline and gathering systems. Results besides included a $60 cardinal summation related to favorable impacts to our crude lipid inventory worth arsenic a effect of rising crude lipid prices. We expect these gains to beryllium mostly offset with hedge losses during the 2nd 4th of this year. In addition, we recognized $43 cardinal of gross that had antecedently been reserved related to the recontracting and hold of a bequest shipper declaration during the precocious completed palmy DAPL unfastened season, and we had little expenses owed to a $43 cardinal accommodation to an accrual for a litigation-related contingency. In our interstate earthy state segment, adjusted EBITDA was astir $519 cardinal compared to astir $512 cardinal for the archetypal 4th of 2025. This summation was chiefly owed to higher contracted volumes and higher rates connected respective of our pipelines including Panhandle Eastern, Trunkline, Florida Gas, and Transwestern. And for our intrastate earthy state segment, adjusted EBITDA was astir $437 cardinal compared to astir $344 cardinal successful the archetypal 4th of 2025. This was chiefly owed to an summation of astir $100 cardinal from wintertime tempest burn. Results for the archetypal 4th amusement however incredibly well-positioned our assets are crossed the country. Combining our extended pipeline network, our retention facilities, and our terminals with our exceptionally experienced optimization and operating teams, we were capable to capitalize connected rapidly changing dynamics and marketplace volatility. For a person look astatine immoderate of our large projects connected the earthy state broadside of our business, wherever we proceed to spot important request for our services: We are making bully advancement connected our Desert Southwest pipeline project. In March 2026, Transwestern Pipeline initiated the FERC prefiling process for the task arsenic antecedently scheduled, and we expect to record the ceremonial certificate exertion with FERC successful the 4th fourth of this year. In April, arsenic a continuation of our broad stakeholder engagement program, we hosted 15 unfastened houses successful communities on the full projected pipeline way passim Texas, New Mexico, and Arizona. Our teams proceed to actively prosecute with elected officials, region leadership, landowners, and associated communities on the way to pass task accusation and updates; we person engaged with implicit 500 stakeholders to date.