Energy Transfer LP (ET): Business Model Canvas [Dec-2025 Updated]

You're digging into Energy Transfer LP's business model because, frankly, understanding how they manage over 130,000 miles of pipelines to generate expected 2025 Adjusted EBITDA between $16.1B and $16.5B is crucial for any serious valuation. As someone who's spent two decades mapping these giants, I can tell you their success hinges on a deeply integrated, fee-based structure that serves everyone from major E&P companies to hyperscale data centers needing dedicated power supply. We've broken down their entire operation-from key partnerships like the Lake Charles LNG joint venture to their massive capital deployment of $4.6 billion in organic CapEx for 2025-into the nine essential blocks below so you can see the engine room clearly.

Energy Transfer LP (ET) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Energy Transfer LP's growth strategy-the deep, long-term relationships that lock in future cash flows. These aren't just casual agreements; they are multi-decade commitments that underpin major capital projects, especially in the burgeoning LNG and data center sectors. Here's the breakdown of the key alliances as of late 2025.

Major Contracted Volume Commitments

Energy Transfer LP is aggressively securing long-term offtake and transportation commitments to de-risk its major capital expenditures, particularly for the Lake Charles LNG project. These deals often involve investment-grade counterparties, which is crucial for securing project financing.

For instance, the company highlighted that within the last year leading up to its Q3 2025 earnings call, it contracted over 6 Bcf per day of pipeline capacity with demand-pull customers. These contracts carry a weighted average life of over 18 years and are projected to generate more than $25 billion in revenue from firm transportation fees alone.

The Transwestern Pipeline - Desert Southwest Expansion Project, an estimated $5.3 billion investment, is explicitly supported by these significant, long-term commitments with investment-grade counterparties.

Joint Venture and Strategic Development

The Lake Charles LNG project is being advanced through a critical joint development framework with MidOcean Energy. Under the Heads of Agreement (HOA) signed in April 2025, MidOcean would commit to funding 30% of the construction costs. In return, MidOcean is entitled to receive 30% of the total LNG production, which equates to approximately 5.0 million tonnes per annum (MMtpa). This structure helps Energy Transfer LP reduce its immediate capital outlay while still securing a major anchor customer/partner for the facility, which will leverage existing infrastructure including four LNG storage tanks and two deep-water berths.

Energy Transfer LP is also supporting the power infrastructure required by its data center partners. For Oracle, Energy Transfer is working with VoltaGrid to deploy 2.3GW of power infrastructure to run the new data centers.

Strategic Gas Supply Deals with Tech Giants

Energy Transfer LP is directly partnering with major technology firms to secure long-term gas transportation and supply for their power-hungry data centers. This is a new, high-growth area for the partnership.

• Energy Transfer agreed to supply approximately 900mn cf/d of natural gas to Oracle for three U.S. data centers.
• The company is also expanding its storage capacity, constructing a new cavern at the Bethel facility to double working gas storage to over 12 Bcf, which management sees as critical for reliably serving data centers during events like 'freeze-offs.'
• The CloudBurst deal involves supplying up to 450,000 MMBtu per day to its San Marcos, Texas campus, with service expected to start in Q3 2026.

Ownership Stakes in Related Entities

Energy Transfer LP maintains significant ownership stakes in other publicly traded partnerships, which contribute to its consolidated earnings and provide a diversified revenue stream. These investments are reported as distinct segments in their financial reporting.

Here's a look at the reported ownership and recent financial contribution from these strategic holdings:

The combined revenue from these two investment segments in the last reported quarter was $6.257 billion. To be defintely clear, Energy Transfer LP owns the general partner interests for both, which includes incentive distribution rights.

Energy Transfer LP (ET) - Canvas Business Model: Key Activities

Operating and maintaining over 130,000 miles of pipelines

Energy Transfer LP operates approximately 140,000 miles of pipeline and associated infrastructure across 44 states. The core activity involves the physical movement and storage of natural gas, crude oil, NGLs, and refined products through this extensive network.

Natural gas gathering, processing, and interstate/intrastate transport

Energy Transfer moves a significant portion of U.S. natural gas production. Midstream gathered volumes set a new Partnership record in the second quarter of 2025, increasing 10% year-over-year. Permian Basin processing volumes reached nearly 5 Bcf per day in the second quarter of 2025. The 200 MMcf/d Lenorah II Processing plant in the Midland Basin was placed into service in Q2 2025 and is running at full capacity.

• Interstate natural gas transportation volumes increased 11% in Q2 2025 compared to Q2 2024.
• Intrastate natural gas transportation volumes increased 8% in Q2 2025 compared to Q2 2024.
• The Bethel natural gas storage facility expansion will double working storage capacity to over 12 Bcf.

NGL fractionation, storage, and high-volume export operations

The NGL segment is a key driver of earnings, with NGL export volumes increasing 5% in the second quarter of 2025 over the prior year period. The Partnership operates NGL export terminals on both the Gulf Coast and East Coast.

The Nederland Flexport NGL Export Expansion Project recently entered ethane and propane service, expecting to add up to 250,000 Bbls/d of total NGL export capacity at the Nederland terminal. NGL fractionated volumes grew 5% in Q2 2025.

Developing large-scale organic growth projects like the Desert Southwest pipeline

Energy Transfer LP committed approximately $2 billion to organic growth capital in the first six months of 2025, primarily in NGL, refined products, midstream, and intrastate segments. The company now expects to spend approximately $4.6 billion on organic growth capital projects for the full year 2025, down from a previous guidance of $5.0 billion.

The Desert Southwest pipeline expansion is a major undertaking:

• Project Cost: Approximately $5.3 billion, including $0.6 billion of Allowance for Funds Used During Construction (AFUDC).
• Scope: Construction of 516 miles of 42-inch pipeline and nine new compressor stations across Arizona, New Mexico, and Texas.
• Capacity Addition: Design capacity of 1.5 billion cubic feet per day (Bcf/d).
• In-Service Target: Fourth quarter of 2029.

Other major projects include the Hugh Brinson Pipeline Phase 1, expected in service by no later than the fourth quarter of 2026, providing approximately 1.5 Bcf per day of takeaway capacity.

Managing commodity risk through hedging and optimization

The business model relies on fee-based margins, providing stability, but optimization activities are key to performance. The company's 2025 Adjusted EBITDA guidance was set between $16.1 billion and $16.5 billion early in the year, but by Q3 2025, management projected results to be slightly below the lower end of that range. Year-to-date Adjusted EBITDA through Q3 2025 reached $11.8 billion.

The Q2 2025 earnings call noted that the guidance revision was attributed to factors including 'weakness in the Bakken, slower recovery in the dry gas areas than we expected and a lack of normal volatility in our gas optimization business.' This context underscores the activity of managing market exposure within the gas optimization segment.

• 2025 Adjusted EBITDA Guidance (Initial): $16.1 billion to $16.5 billion.
• 2025 Adjusted EBITDA Expectation (Revised Q3 2025): Slightly below $16.1 billion.
• Q2 2025 Adjusted EBITDA: $3.9 billion.
• Q3 2025 Adjusted EBITDA: $3.84 billion.

Energy Transfer LP (ET) - Canvas Business Model: Key Resources

You're looking at the core assets Energy Transfer LP relies on to run its massive midstream operations as of late 2025. These aren't just lines on a map; they are the physical and contractual foundations of their cash flow.

Vast, Integrated Pipeline Network

Energy Transfer LP operates one of the largest and most diversified midstream infrastructure networks in the United States. This scale provides a significant competitive moat, linking major production basins to key demand centers and export hubs.

• Total pipeline length across North America: approximately 140,000 miles.
• The strategic network spans 44 states.
• The structure of its EBITDA is heavily supported by fee-based revenue, with over 80% of earnings coming from long-term, fee-based agreements.

Strategic Export Facilities: Nederland Terminal and Mont Belvieu Complex

The Gulf Coast export infrastructure is a critical resource, linking Permian and other basin production to global markets. The Nederland Terminal is a cornerstone of this strategy.

Financial Capacity

Liquidity remains a key resource, ensuring the partnership can fund its capital program and manage short-term obligations without stress. You need to watch this number closely for near-term flexibility.

As of September 30, 2025, Energy Transfer LP's revolving credit facility had an aggregate $3.44 billion of available borrowing capacity.

Long-Term, High-Volume, Take-or-Pay Transportation Contracts

The stability of Energy Transfer LP's cash flows is directly tied to the nature of its contracts, which are predominantly fee-based, insulating them somewhat from commodity price swings. The Desert Southwest Pipeline expansion is a good example of securing long-term revenue streams.

• Percentage of earnings derived from fee-based, long-term agreements: over 80%.
• Desert Southwest Expansion contract duration: 25 years.

Proprietary Technologies: Dual Drive Compression

The patented Dual Drive Compression technology, managed by subsidiary Dual Drive Technologies, is a unique operational asset that offers both efficiency and environmental compliance benefits by switching drivers between an electric motor and a natural gas engine.

• Fleet size: nearly 100 units installed.
• Total horsepower: approximately 425,000 HP.
• Total installed electric capacity: 316 megawatts.
• Emissions reduction in 2019 from 70% electric operation: 500,000 tons of carbon dioxide.
• Emissions reduction in 2022 from over 80% electric operation: 752,062 tons of carbon dioxide annually.

Finance: draft 13-week cash view by Friday.

Energy Transfer LP (ET) - Canvas Business Model: Value Propositions

Fully integrated, wellhead-to-water service for all major hydrocarbons

Energy Transfer LP operates more than 130,000 miles of pipeline and associated infrastructure, spanning 44 states. The company completed the initial phase of the Sabina 2 pipeline conversion, boosting capacity from 25,000 barrels per day to 40,000 barrels per day for multiple products. Optimization of the Grey Wolf processing plant increased capacity from 200 MMcf/d to 250 MMcf/d. The Nederland Flexport NGL Export Expansion Project is expected to add up to 250,000 Bbls/d of total NGL export capacity at the Nederland terminal.

Stable, predictable cash flow from a fee-based model (vast majority is fee-based)

The vast majority of Energy Transfer LP's segment margins are fee-based, reducing sensitivity to commodity price fluctuations. For the first quarter of 2025, Adjusted EBITDA was $4.10 billion. For the second quarter of 2025, Adjusted EBITDA was $3.87 billion. For the third quarter of 2025, Adjusted EBITDA was $3.84 billion. The company expects its full-year 2025 Adjusted EBITDA to be between $16.1 billion and $16.5 billion. Growth capital expenditures for 2025 are projected at approximately $5.0 billion.

Reliable, high-capacity access to major U.S. production basins and global markets

Energy Transfer LP has a network of more than 105,000 miles of natural gas gathering, intrastate and interstate transportation pipelines and storage facilities with a combined storage capacity of nearly 236 billion cubic feet. Interstate natural gas transportation volumes were up 11% in the second quarter of 2025 compared to the second quarter of 2024. Crude oil transportation volumes were up 10% in the first quarter of 2025 year-over-year. NGL exports were up 13% in the third quarter of 2025. The company has a 20-year Sale and Purchase Agreement with Chevron U.S.A. Inc. for 2.0 million tonnes of LNG per annum from the Lake Charles LNG export facility.

Dedicated energy infrastructure for high-growth AI/data center demand (e.g., 2,300 MW supply)

Energy Transfer LP entered a long-term agreement to supply natural gas to CloudBurst Data Center's AI-focused data center in Central Texas. This agreement involves providing up to 450,000 MMBtu per day of firm natural gas supply, sufficient to generate approximately 1.2 gigawatts (GW) of direct electric power for at least 10 years. The facility is scheduled to begin operations in the third quarter of 2026. Energy Transfer is in discussions with a number of other data center developers. The company also executed agreements to supply natural gas to Oracle's data centers.

Product and geographic diversity, balancing earnings across segments

The Partnership's multiple segments generate high-quality, balanced earnings. The following table shows segment Adjusted EBITDA contribution for the three months ended June 30, 2025:

For the three months ended March 31, 2025, no single segment contributed more than one-third of the consolidated Adjusted EBITDA. Energy Transfer generates approximately 40% of its Adjusted EBITDA from natural gas-related assets for the three months ended June 30, 2025.

Energy Transfer LP (ET) - Canvas Business Model: Customer Relationships

The relationship strategy for Energy Transfer LP centers on securing stable, long-term revenue by embedding its infrastructure deeply within the supply chains of major industrial and utility customers.

Long-term, fixed-fee contracts with minimum volume commitments

The vast majority of Energy Transfer LP segment margins are fee-based, which limits exposure to commodity price swings. The company is actively working to lock in more volumes under these long-term, fee-based arrangements. Management is targeting potential revenue exceeding $25 billion from long-term transportation fees based on its current project backlog.

Operational performance in 2025 reflects this contract strength:

Distributable Cash Flow attributable to partners, as adjusted, for the three months ended September 30, 2025, was approximately $1.9 billion. The quarterly cash distribution announced in October 2025 for the quarter ended September 30, 2025, was $0.3325 per common unit, representing an annualized rate of $1.33.

Dedicated account management for major producers and utilities

Energy Transfer LP is securing growth through multi-decade agreements with key customers, including utilities. The company operates more than 130,000 miles of pipeline across 44 states, servicing all major U.S. production basins. This extensive network supports dedicated service offerings.

A concrete example is the 20-year binding agreement with Entergy Louisiana, which provides initial firm transportation service of 250,000 MMBtu/d to fuel their facilities in Richland Parish, LA.

Joint development and equity partnerships for large-scale LNG projects

The Lake Charles LNG project is a focal point for these partnerships. In April 2025, Energy Transfer LP entered a Heads of Agreement with MidOcean Energy for joint development, committing MidOcean to fund 30% of construction costs in exchange for 30% of LNG production. Customers like Chevron, China's ENN Energy, and South Korea's SK Gas Trading have signed long-term contracts for LNG from this facility, though the Final Investment Decision (FID) is now expected in Q1 2026.

Specific LNG Sale and Purchase Agreements (SPAs) secured for Lake Charles LNG include:

• A 20-year SPA with Kyushu Electric Power Company, Inc. for up to 1.0 mtpa of LNG.
• An SPA with an unnamed international energy company for 1.0 mtpa of LNG.
• An HOA with a German energy company for 1.0 mtpa of LNG.

Direct engagement with hyperscalers for customized gas supply solutions

Energy Transfer LP is directly serving the power needs of data centers, bypassing traditional utility arrangements. This is a key growth driver.

Key agreements with hyperscalers as of late 2025 include:

• Multiple long-term agreements with Oracle to supply approximately 900,000 Mcf/d of natural gas to three U.S. data centers, with first flows expected by YE 2025.
• A long-term agreement with CloudBurst Data Centers to provide up to 450,000 MMBtu per day of firm natural gas supply to its Central Texas AI campus for at least 10 years, sufficient to generate up to approximately 1.2 GW of power.
• A 10-year agreement with Fermi America for an initial gas supply of approximately 300,000 MMBtu/d to its HyperGrid campus, subject to Fermi's election.

To support its own operations and provide reliable supply, Energy Transfer LP is constructing eight, 10-megawatt natural gas-fired electric generation facilities in Texas, with the third facility commissioning in Q1 2025. The company's storage capacity stands at nearly 236 billion cubic feet across its network.

Energy Transfer LP (ET) - Canvas Business Model: Channels

You're looking at how Energy Transfer LP moves the product from where it's produced to where it's needed-that's the Channels block. This is all about massive infrastructure, the physical arteries of their business, and the numbers show just how extensive this network is as of late 2025.

Energy Transfer LP owns and operates one of the largest and most diversified portfolios of energy assets in the United States, boasting more than 130,000 miles of pipeline in total.

Interstate and intrastate natural gas pipelines

This segment is the backbone for moving gas to major demand centers. Energy Transfer moves approximately 30 percent of U.S. natural gas production through its system. The growth in demand is clearly reflected in their throughput metrics from the second quarter of 2025; interstate natural gas transportation volumes were up 11% year-over-year, and intrastate volumes saw an 8% increase. You can see future capacity coming online, too. For instance, the Hugh Brinson Pipeline Phase I is expected to deliver about 1.5 Bcf per day of takeaway capacity from the Permian Basin by the end of 2026.

Crude oil and NGL pipelines and gathering systems

This covers the initial collection and midstream transport before processing or export. The crude oil trunk and gathering lines alone stretch for approximately 17,950 miles. For crude oil takeaway specifically from the Permian, they have capacity near 1 million barrels per day. The gathering side is also robust; total gathering volumes were reported around 21.6 Bcf/d in a recent quarter. Transportation volumes show consistent utilization, with crude oil transportation volumes up 9% and NGL transportation volumes up 4% in Q2 2025 compared to the prior year.

NGL and crude oil export terminals (e.g., Nederland, Marcus Hook)

These terminals are the critical link to international markets, giving Energy Transfer LP a global channel. Their total NGL export capacity sits at over 1.1 million barrels per day (Bbls/d), maintaining a market share of roughly ~20% of worldwide NGL exports. The Nederland Terminal, a key Gulf Coast asset, is undergoing a major expansion, the Nederland Flexport NGL Export Expansion Project, which is set to add up to 250,000 Bbls/d of total NGL export capacity. Ethane and propane service started by mid-2025, with ethylene service expected in Q4 2025. For crude oil storage, the Nederland Terminal holds about 30 million barrels, while the Marcus Hook Terminal on the East Coast has about 1 million barrels of crude storage capacity. Marcus Hook can move around 260,000 b/d of LPG.

Processing and fractionation plants (e.g., Lenorah II, Mont Belvieu)

These facilities are where the value is added by separating mixed NGLs into purity products. Mont Belvieu is the epicenter here, where Energy Transfer LP operates eight fractionators. As of early 2025, their total fractionation capacity at Mont Belvieu exceeded 1.15 million barrels per day (b/d). They are building out further, with a new 165,000 Bbls/d fractionator (Frac IX) planned for Q4 2026. Once Frac IX is complete and current debottlenecking projects finish, total deliverability into Mont Belvieu is expected to climb to over ~1.3 million Bbls/d. The storage capacity at this single hub is substantial, holding approximately 62 million barrels of NGL storage.

New processing capacity came online in 2025 to serve growing production areas. You should note these recent additions:

• The 200 MMcf/d Lenorah II Processing plant in the Midland Basin was placed in service in Q2 2025 and is running at full capacity.
• The 200 MMcf/d Badger Processing Plant was also placed in service in Q2 2025.
• The Mustang Draw processing plant, with capacity near 275 MMcf/d, was approved in February 2025 for a first-half 2026 start.

Here's a quick look at the scale of the fractionation assets:

These channels are the physical manifestation of Energy Transfer LP's strategy to connect supply basins to domestic and global demand points. Finance: draft 13-week cash view by Friday.

Energy Transfer LP (ET) - Canvas Business Model: Customer Segments

Energy Transfer LP serves a broad and diverse set of customers across its integrated midstream network, which spans approximately 140,000 miles of pipeline across 44 states.

Major crude oil and natural gas exploration and production (E&P) companies

This segment provides the initial gathering and processing services, with volumes showing strong growth, indicating robust E&P activity on the receiving end of Energy Transfer LP's infrastructure.

• Midstream gathered volumes were up more than 2% in the first quarter of 2025 compared to the first quarter of 2024.
• Midstream gathered volumes were up 10% in the second quarter of 2025 compared to the second quarter of 2024, setting a new Partnership record.
• The company has direct access to all major oil and gas production basins in the lower 48 states.

Domestic and international refiners and petrochemical manufacturers

Refiners and petrochemical manufacturers are key off-takers for Energy Transfer LP's NGL and refined products segments, particularly those connected to assets in Mont Belvieu, Texas. The NGL & Refined Products segment reported revenues of $5.853 billion in the last reported quarter, with EBITDA growing to $1.054 billion.

The company is expanding its NGL processing capability, with a planned 165,000 Bbls/d fractionator in Mont Belvieu, which would increase total capacity to 1.3 million Bbls/d.

Global LNG and NGL purchasers (e.g., Asian and European utilities)

Energy Transfer LP is a significant player in the export market, leveraging its facilities on both the U.S. Gulf Coast and East Coast. Total NGL exports were up 5% in Q1 2025 versus Q1 2024.

The Lake Charles LNG project is a key focus for international purchasers. Energy Transfer LP secured a 20-year Sale and Purchase Agreement (SPA) with Chevron U.S.A. Inc. for an additional 1.0 million tonnes per annum (mtpa) of LNG supply in June 2025, bringing Chevron's total contracted volume to 3.0 mtpa. Furthermore, Energy Transfer LP entered into a 20-year LNG SPA with Kyushu Electric Power Company, Inc. in May 2025.

Electric utilities and power generators (e.g., Entergy Louisiana)

This customer group relies on Energy Transfer LP for firm natural gas transportation to fuel power generation, increasingly for combined-cycle facilities supporting new industrial load.

Energy Transfer LP signed a 20-year natural gas firm transportation agreement with Entergy Louisiana, starting in February 2028, to initially provide 250,000 MMBtu per day of service, with an option to expand capacity. This project involves expanding the Tiger Pipeline with a 12-mile lateral with a capacity of up to 1 Bcf/day.

Hyperscale technology companies and AI data center operators

This is an emerging, high-growth customer segment, directly tied to the power demand from large computing facilities. Energy Transfer LP has secured specific deals to service these energy-intensive operations.

• The Entergy Louisiana agreement explicitly supports projects like Meta's new hyperscale data center in Richland Parish, Louisiana.
• Energy Transfer LP entered into a long-term agreement in February 2025 with Cloudburst Data Centers, Inc. to provide natural gas to its AI-focused data center campus outside San Marcos, Texas, supplying up to 450 billion British thermal units per day of firm gas supply.
• Energy Transfer LP also secured an agreement to supply gas for a power-data center partnership between VoltaGrid LLC and Oracle Corp.

The following table summarizes key operational metrics relevant to the customer base as of mid-2025:

The company's overall asset base supports these customer segments, including its ownership of approximately 21% of Sunoco LP and 39% of USA Compression Partners, LP.

Energy Transfer LP (ET) - Canvas Business Model: Cost Structure

You're looking at the major drains on Energy Transfer LP's cash flow, the parts of the business that require serious capital commitment just to keep the lights on and the growth engine running. For a massive infrastructure player like Energy Transfer LP, the cost structure is dominated by capital deployment.

Capital Expenditures for Growth and Maintenance

Energy Transfer LP has significant capital needs, split between expanding capacity for future revenue and maintaining the existing, sprawling network. For the full year 2025, the Partnership projected its growth capital expenditures to total approximately $5.0 billion. Maintenance capital expenditures for 2025 were projected to be about $1.1 billion.

Looking at the year-to-date spend as of mid-2025 gives you a clearer picture of the spending pace:

That's a lot of cash going out the door for projects like the Hugh Brinson Pipeline construction and the Mustang Draw processing plant approval.

Substantial Interest Expense

Because Energy Transfer LP carries substantial debt to fund this infrastructure build-out, interest expense is a major recurring cost. You can see the quarterly impact clearly in the 2025 filings. The interest expense, net of interest capitalized, for the first half of 2025 was significant.

• Interest expense, net of interest capitalized, for the second quarter of 2025 was $865 million.
• Interest expense, net of interest capitalized, for the first quarter of 2025 was $762 million.
• The combined year-to-date interest expense, net of interest capitalized, for the first half of 2025 reached $1,674 million.

This is a fixed commitment that must be serviced regardless of short-term commodity price fluctuations.

Operating Expenses for Pipeline and Facility Maintenance

Beyond the capital spending, there are the day-to-day costs of running over 130,000 miles of pipeline and associated facilities. These operating expenses cover integrity management, routine repairs, and staffing. While a total figure for pipeline and facility maintenance OpEx isn't explicitly broken out in the latest reports, we know the acquisition of NuStar in May 2024 added pressure; for instance, operating expenses in Q2 2025 showed an increase of $13 million due to NuStar costs compared to the prior period. Energy Transfer LP is also investing in its own power generation, commissioning the first of eight 10-megawatt natural gas-fired electric generation facilities in Texas to help manage operational costs.

Regulatory Compliance and Environmental Costs

The regulatory environment requires ongoing, non-discretionary spending. Costs associated with regulatory compliance, permitting, and environmental initiatives are a constant in this sector. This includes spending related to meeting evolving federal and state standards for pipeline safety and emissions control. For example, the company is actively involved in projects like the Lake Charles LNG development, which carries its own set of compliance and environmental obligations.

Finance: draft 13-week cash view by Friday.

Energy Transfer LP (ET) - Canvas Business Model: Revenue Streams

You're looking at how Energy Transfer LP actually brings in the money, which is almost entirely through long-term, fee-based contracts, keeping commodity price exposure low. That stability is key to their valuation, honestly.

For the full year 2025, Energy Transfer LP reaffirmed its guidance for Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be in the range of $16.1 billion to $16.5 billion. However, as of the third quarter 2025 report in November, management indicated they now expect to finish 2025 slightly below the lower end of that prior guidance range. This slight adjustment was partly due to project forecast reductions and spending deferrals into 2026.

The core of Energy Transfer LP's revenue generation comes from moving and storing energy products under contract. Here's a look at how the segments contributed, using the first quarter 2025 Adjusted EBITDA as a concrete example of the revenue engine at work:

Fee-based revenue from natural gas transportation and storage is a bedrock. Energy Transfer LP owns more than 105,000 miles of natural gas pipeline, moving approximately 30 percent of U.S. natural gas production. You saw strong performance here, with interstate natural gas transportation volumes up 3% in the first quarter of 2025, and even stronger growth of 11% in the second quarter of 2025.

Fees from crude oil transportation and terminalling services remain significant. The crude oil segment posted an Adjusted EBITDA of $742 million in the first quarter of 2025. This was supported by crude oil transportation volumes increasing by 10% year-over-year in Q1 2025, and by 9% in Q2 2025.

The NGL and Refined Products segment, which covers fractionation, storage, and export terminal services, is a major earner, reporting $978 million in Adjusted EBITDA in Q1 2025. This business benefits from ongoing expansions; for instance, ethylene export service at the Nederland Terminal is expected to start by the fourth quarter of 2025. NGL transportation volumes saw a 4% increase in Q1 2025, and NGL exports grew by 5% that same quarter.

Equity earnings from affiliates provide a steady, diversified cash flow lift. Energy Transfer LP holds ownership stakes in two key partnerships that are reported separately:

• Sunoco LP (SUN): Energy Transfer LP holds roughly a 15% stake, though another source cites 21%. For the last reported quarter, the investment in SUN generated $489 million in EBITDA.
• USA Compression Partners, LP (USAC): Energy Transfer LP holds around a 38% stake, with one report stating 39%. This investment contributed $160 million in EBITDA during that same recent quarter.

To be fair, the reported Adjusted EBITDA related to unconsolidated affiliates was $170 million for the fourth quarter of 2024, showing the material contribution from these equity method investments.

Finance: draft 13-week cash view by Friday.