Key Highlights

  • Energy Transfer LP (NYSE: ET) reported Q2 2026 Net Income of $2.53 billion, up from $1.46 billion in Q2 2025, with consolidated Adjusted EBITDA of $5.07 billion for the quarter, an increase of $1.2 billion year-on-year.
  • For the six months ended June 30, 2026, net income reached $4.51 billion compared to $3.18 billion in the same period of 2025, while consolidated Adjusted EBITDA for the half-year totalled $10.0 billion, an increase of $2.04 billion versus the prior year.
  • The Partnership declared a quarterly distribution of $0.3400 per common unit for Q2 2026, equivalent to $1.36 annualised, payable August 19, 2026, continuing a pattern of modest quarter-on-quarter distribution growth.
  • The results were driven by strong contributions from all eight reportable segments, with the most significant increases in intrastate transportation and storage, NGL and refined products transportation and services, midstream, and the Investment in Sunoco LP, the last of which benefited substantially from recent acquisitions.

Q2 and Half-Year Financial Performance

Energy Transfer LP (NYSE: ET) reported net income of $2.53 billion for the three months ended June 30, 2026, compared to $1.46 billion in Q2 2025. Consolidated Adjusted EBITDA for the quarter was $5.07 billion, up $1.2 billion from $3.87 billion in the same quarter of the prior year. Basic income per common unit was $0.59 for Q2 2026, compared to $0.32 in Q2 2025.

For the six months ended June 30, 2026, net income was $4.51 billion, up from $3.18 billion in the corresponding period of 2025. Consolidated Adjusted EBITDA for the first half of 2026 totalled $10.0 billion, an increase of $2.04 billion year-on-year. Basic income per common unit for the six-month period was $0.94, compared to $0.68 in the prior year period.

Net cash provided by Operating Activities for the six months ended June 30, 2026 was $7.65 billion, compared to $5.68 billion in the same period of 2025. Total revenues for Q2 2026 were $34.33 billion, driven primarily by the enlarged Sunoco LP segment following recent acquisitions, with Crude Oil transportation and services and NGL and refined products also contributing meaningfully to the increase.

Segment Performance: Key Drivers of the Year-on-Year Improvement

The intrastate transportation and storage segment delivered Adjusted EBITDA of $377 million in Q2 2026, up $93 million from $284 million a year earlier. The improvement was driven primarily by wider basis differentials in Natural Gas markets and early commissioning volumes from the Hugh Brinson Pipeline, partially offset by lower third-party firm capacity utilisation and higher operating expenses.

The NGL and refined products transportation and services segment was a standout performer, with Q2 2026 Adjusted EBITDA of $1.31 billion, up $275 million from $1.03 billion a year earlier. Higher premiums from NGL sales for export and domestic supply, stronger terminal services revenues at the Nederland and Marcus Hook export facilities, and improved Marketing margins were the primary contributors. NGL transportation volumes rose to 2,641 MBbls/d from 2,331 MBbls/d in Q2 2025.

The investment in Sunoco LP segment recorded Q2 2026 Adjusted EBITDA of $982 million, more than double the $454 million reported in Q2 2025, with the increase driven almost entirely by the contribution of recently acquired businesses, including Parkland, TanQuid, and Delta. The Midstream segment added $884 million of Adjusted EBITDA in Q2 2026, up $116 million year-on-year, supported by higher gathered and processed volumes and stronger NGL and natural gas prices.

Acquisitions: Sunoco LP and USAC Expand Their Footprints

The first half of 2026 saw significant Acquisition activity across Energy Transfer LP (NYSE: ET)'s Subsidiary structure. USAC completed the acquisition of J-W Energy Company and its subsidiary J-W Power Company on January 12, 2026, for total consideration of approximately $912 million, comprising approximately $455 million in cash and approximately 18.2 million newly issued USAC common units. The J-W Power acquisition added approximately 0.8 million active horsepower and 1.0 million total horsepower to USAC's compression fleet across the Northeast, Mid-Con, Rockies, Gulf Coast, Bakken, and Permian Basin regions.

Sunoco LP completed the acquisition of TanQuid on January 16, 2026, for approximately 206 million euros ($239 million), assuming Debt with a Fair Value of approximately 298 million euros ($346 million). TanQuid owns and operates 15 fuel terminals in Germany and one fuel terminal in Poland. Sunoco LP also completed the acquisition of Delta Petroleum Group on April 1, 2026, for approximately $81 million, adding terminals and fuel distribution Assets across five Caribbean markets.

Subsequent to the quarter end, Sunoco LP entered into a definitive agreement on August 5, 2026 to acquire a US-based fuel distribution network in an all-cash transaction valued at approximately $600 million, expected to close in Q4 2026. These acquisitions collectively underpin the Sunoco LP segment's substantially higher Earnings contribution in the first half of 2026 relative to the prior year period.

Capital Expenditure, Debt, and Liquidity

Energy Transfer LP (NYSE: ET) incurred total capital expenditures of $3.61 billion on an accrual basis for the six months ended June 30, 2026, comprising $2.93 billion of growth capital and $678 million of maintenance capital. The partnership has guided for approximately $5.75 billion in full-year 2026 growth Capital Expenditure (excluding Sunoco LP and USAC), with maintenance capital of approximately $1.15 billion, reflecting the scale of infrastructure expansion underway across its pipeline and processing network.

Consolidated long-term debt, excluding current maturities, stood at $68.39 billion as of June 30, 2026, broadly unchanged from $68.31 billion at December 31, 2025. The aggregate fair value of consolidated debt obligations was $68.27 billion as of June 30, 2026. The partnership's Leverage Ratio under its Five-Year Credit Facility covenant was 3.01 times for the quarter ended June 30, 2026, comfortably within covenant limits. Availability under the Five-Year Credit Facility was $3.76 billion as of June 30, 2026, with $1.21 billion outstanding.

In the first half of 2026, Energy Transfer LP (NYSE: ET) issued $3.0 billion of senior notes across three tranches maturing in 2031, 2036, and 2056, using the proceeds to refinance near-term maturities. Subsequent to quarter end, the partnership issued $1.75 billion of Junior Subordinated Notes due 2057, with proceeds intended to redeem the Series H Preferred Units and repay revolving credit borrowings.

Distribution and Unitholder Returns

Energy Transfer LP (NYSE: ET) declared a quarterly cash distribution of $0.3400 per common unit for Q2 2026, payable August 19, 2026 to unitholders of record as of August 7, 2026. This represents an increase from $0.3375 per unit in Q1 2026 and $0.3350 per unit in Q4 2025, continuing a pattern of incremental quarterly distribution growth. On an annualised basis, the Q2 2026 rate equates to $1.36 per unit.

The partnership paid total distributions to partners of $2.41 billion in the six months ended June 30, 2026, compared to $2.35 billion in the same period of 2025. Distributions to noncontrolling interests were $1.07 billion for the first half of 2026, reflecting the scale of Sunoco LP and USAC's external unitholders. As of June 30, 2026, $880 million remained available under Energy Transfer LP (NYSE: ET)'s common unit repurchase programme, though no units were repurchased in the first half of 2026.

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy, sell, or hold any security. The financial data referenced in this article is sourced from Energy Transfer LP's Form 10-Q for the quarterly period ended June 30, 2026, filed with the US Securities and Exchange Commission. Readers should conduct their own research or consult a qualified financial adviser before making any investment decisions.