Energy Transfer over $6B in capital expenditures expected in 2025
Looking ahead to 2025, Energy Transfer provided a positive outlook, projecting Adjusted EBITDA to range between $16.1 billion and $16.5 billion for the year.
The company expects growth capital expenditures to total approximately $5.0 billion, with maintenance capital expenditures projected at around $1.1 billion.
Financial Performance for Q4 2024
Energy Transfer reported robust financial results for the fourth quarter of 2024, with net income attributable to partners of $1.08 billion. This translated to net income per common unit (basic) of $0.29. Adjusted EBITDA for the quarter was $3.88 billion, reflecting an 8% increase compared to $3.60 billion for the same period in the previous year.
The company also reported Distributable Cash Flow (DCF) attributable to partners, as adjusted, of $1.98 billion for Q4 2024. Growth capital expenditures for the quarter stood at $1.22 billion, with maintenance capital expenditures totaling $309 million.
Operational Highlights
Energy Transfer saw continued growth in its operational volumes during Q4 2024:
- Crude oil transportation volumes increased by 15%.
- NGL (Natural Gas Liquids) transportation volumes rose by 5%.
- NGL exports were up by over 2%.
- Midstream gathered volumes grew by 2%.
- Interstate natural gas transportation volumes saw a 2% increase.
In December 2024, Energy Transfer successfully completed the first phase of the Sabina 2 pipeline conversion, boosting capacity from 25,000 barrels per day to 40,000 barrels per day for multiple products. Additionally, the company completed the optimization of its Grey Wolf processing plant in the Permian Basin, increasing its capacity from 200 MMcf/d to 250 MMcf/d. In a move to further enhance operational efficiency, Energy Transfer also commissioned the first of eight 10-megawatt natural gas-fired electric generation facilities in Texas.
Strategic Developments
Energy Transfer announced several strategic developments during the fourth quarter of 2024:
- Agreement with CloudBurst Data Centers: In January 2025, Energy Transfer signed a long-term agreement to provide natural gas to CloudBurst Data Centers, Inc. for their AI-focused data center development in central Texas. The company will utilize its Oasis Pipeline to provide natural gas to CloudBurst's Next-Gen Data Center campus, contingent upon CloudBurst’s final investment decision with its customer.
- Hugh Brinson Pipeline: In December 2024, Energy Transfer made a final investment decision for the construction of the Hugh Brinson Pipeline. This intrastate natural gas pipeline will connect production from the Permian Basin to key markets and trading hubs in Texas.
- LNG Sale and Purchase Agreement with Chevron: Energy Transfer entered into a 20-year agreement with Chevron U.S.A. Inc. to supply 2.0 million tonnes of LNG per annum to Chevron’s Lake Charles LNG project.
- Midland Basin Processing Plant: In February 2025, Energy Transfer approved the construction of the Mustang Draw processing plant in the Midland Basin, which will have a capacity of approximately 275 MMcf/d. The plant is expected to come online in the first half of 2026.
Financial Highlights
Energy Transfer also announced several financial milestones:
- A quarterly cash distribution of $0.3250 per common unit ($1.30 annualized) for Q4 2024, representing a 3.2% increase compared to Q4 2023.
- As of December 31, 2024, the company’s revolving credit facility had an available borrowing capacity of $2.21 billion.
- Approximately $1.22 billion was invested in growth capital expenditures during Q4 2024.
Diversified Portfolio and Resilient Operations
Energy Transfer continues to benefit from a diverse portfolio of assets across the U.S. The company operates more than 130,000 miles of pipeline and associated infrastructure, spanning 44 states. Its diversified operations include natural gas midstream assets, crude oil, NGL, and refined product transportation, as well as LNG fractionation. The vast majority of the company’s segment margins are fee-based, providing a stable earnings base with limited commodity price sensitivity.