Energy Transfer LP Reports 24% Increase in Net Income to $6.565 Billion for 2024

Energy Transfer LP (ET) reported a significant increase in net income for the year ended December 31, 2024, reaching $6.565 billion, a 24% jump from the $5.294 billion recorded in 2023. This increase was primarily driven by a $586 million gain on Sunoco LP's sale of West Texas assets, offsetting a $627 million non-operating litigation-related loss from the previous year. Adjusted EBITDA, a non-GAAP measure, also saw substantial growth, rising 13% to $15.483 billion from $13.698 billion in 2023. This increase reflects favorable results across multiple segments, notably midstream, crude oil transportation and services, and the investment in Sunoco LP.

Key operational developments during 2024 included the July acquisition of WTG Midstream for $3.113 billion, adding approximately 6,000 miles of gas gathering pipelines and eight gas processing plants to Energy Transfer's network. In the same month, Energy Transfer and Sunoco LP formed the ET-S Permian joint venture, combining their Permian Basin crude oil and produced water gathering assets, resulting in over 5,000 miles of pipelines and over 11 million barrels of crude oil storage capacity. Energy Transfer holds a 67.5% stake in this venture. Sunoco LP also completed several acquisitions, including NuStar Energy L.P. and Zenith Energy's European terminals, while divesting 204 convenience stores in West Texas.

Energy Transfer's segments showed varied performance. The intrastate transportation and storage segment saw a $247 million increase in Adjusted EBITDA, primarily due to higher pipeline optimization and natural gas sales. Conversely, the interstate transportation and storage segment experienced a $181 million decrease, mainly attributed to lower operational gas sales and higher operating expenses. The midstream segment reported a $385 million increase, largely driven by recently acquired assets and higher Permian Basin volumes. The NGL and refined products transportation and services segment increased by $285 million, boosted by higher throughput and contractual rate escalations. Finally, the crude oil transportation and services segment saw a $496 million increase, largely due to the ET-S Permian joint venture and favorable market conditions.

As of December 31, 2024, Energy Transfer and its subsidiaries employed 16,248 people, with 1,467 represented by labor unions. The company's total debt, excluding unconsolidated joint ventures, stood at approximately $59.76 billion. Energy Transfer anticipates capital expenditures of approximately $5 billion in 2025, with a focus on growth projects and acquisitions. The company expects increased demand for its services from various sources, including data centers, power plants, and LNG exports, and anticipates a more favorable regulatory environment under the new presidential administration. However, the company acknowledges numerous risks, including commodity price volatility, regulatory changes, and cybersecurity threats, which could materially affect its future performance.