Energy Transfer Lifts 2026 Adjusted EBITDA Outlook To $19.7 Billion-$19.9 Billion After 31% Quarterly Jump
The pipeline operator also plans about $7 billion in growth spending for 2027, and Sunoco LP's profit more than doubled.
Energy Transfer, the Dallas-based pipeline operator, raised its 2026 forecast for Adjusted EBITDA to a range of $19.7 billion to $19.9 billion on Tuesday, after third-quarter Adjusted EBITDA climbed 31% to $5.03 billion. The previous range was $18.8 billion to $19.1 billion.
Sunoco drives the quarter
Adjusted EBITDA, the company's preferred measure of operating profit, was $5.03 billion in the three months ended September 30, against $3.84 billion a year earlier, the company reported in an 8-K. Distributable cash flow attributable to partners, as adjusted, rose 33% to $2.52 billion from $1.90 billion. Distributions to be paid to partners for the quarter total $1.18 billion.
The Sunoco LP segment did much of the lifting: its Adjusted EBITDA rose to $1.049 billion from $489 million, which the company attributed primarily to recent acquisitions. Energy Transfer owns Sunoco's general partner, a motor fuel distributor.
Net income attributable to partners was $1.21 billion, up from $1.02 billion, or $0.33 per common unit. Revenue rose to $37.10 billion from $19.95 billion.
Record volumes on the pipes
Energy Transfer owns and operates pipelines, storage and terminals moving natural gas, crude oil, natural gas liquids and refined fuels across the United States. Intrastate transportation volumes rose 14% from a year earlier and midstream gathered volumes rose 6%, both Partnership records. NGL transportation grew 6%, NGL exports 9% and fractionation 5%.
Phase I of the Hugh Brinson Pipeline entered full service on September 1, ahead of schedule. Phase II is on schedule for the first quarter of 2027, and the company expects the full project to come in under budget.
$7 billion for 2027 growth
The company expects to spend $5.4 billion to $5.6 billion on growth projects in 2026 and about $7 billion in 2027. In October it announced a roughly $2.6 billion cash-and-equity deal for Vaquero Midstream, expected to close in the fourth quarter of 2026, subject to regulatory approval.
The company also reached a final investment decision in November on the 215-mile South Mississippi Pipeline Project, a 36-inch line with capacity of 1.2 billion cubic feet a day at an expected cost of about $1.6 billion. Energy Transfer will likely own 51%, and a binding open season is underway to solicit more customer commitments, with final sizing to follow. Service is projected in 2030.
On the balance sheet, the $5 billion revolving credit facility had $4.41 billion of available borrowing capacity at September 30. In October the company announced a quarterly distribution of $0.3425 per common unit, its twentieth consecutive increase.
Phase II of Hugh Brinson is due in the first quarter of 2027, and the Vaquero deal is slated to close in the fourth quarter of this year.
Sources
- 8-K Filing — Energy Transfer LP (ET) — SEC EDGAR
- Exhibit ex991eterq32026.htm — Energy Transfer LP 8-K exhibit — SEC EDGAR
- PAA vs. ET: Which Pipeline Stock Has the Stronger Investment Case? — Yahoo Finance
- Energy Transfer GAAP EPS of $0.33 misses by $0.08, revenue of $37.1B beats by $4.67B (ET:TXSE) — seekingalpha.com
- Energy Transfer Reports Third Quarter 2026 Results — businesswire.com
