The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Fortune Global 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-043-EnergyTransfer

Energy Transfer, the largest operator of natural gas pipelines in the U.S. by revenue, reported $89.9 billion in revenue in 2022, a 33% increase from the previous year, boosting it 11 spots on this year’s list. 
<ul> 
 	<li>In 2022 Energy Transfer signed 20-year deals for the sale of liquefied natural gas with London-based oil company Shell and commodities trader Gunvor’s Singapore trading desk for 2.1 million tonnes a year and 2 million tonnes a year, respectively.</li> 
 	<li>Energy Transfer announced the $1.45 billion purchase of Lotus Midstream in March 2023, following a series of smaller acquisitions in 2022 worth $1.1 billion.</li> 
 	<li>The company faced several adverse legal outcomes in 2022: Pennsylvania’s attorney general found it criminally liable for repeatedly allowing industrial waste to flow into residential areas, while the Supreme Court upheld a judgment forcing Energy Transfer’s Sunoco unit to pay 53,000 oil well owners in Oklahoma $155 million for interest on late payments.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Energy Transfer

Texas-based midstream energy company Energy Transfer jumped 27 spots on this year’s list, with revenue increasing 73% to $67.4 billion and profits up 89%, to $5.5 billion. Its improved performance is in part due to higher commodity prices and increased natural gas liquid (NGL) transportation and export volumes, all driven by the rebounding global economy. In December 2021, Energy Transfer finalized its acquisition of Enable Midstream Partners—adding significant natural gas and oil infrastructure assets to its portfolio. A strengthened domestic pipeline network gives the company better odds of weathering any instability in the global energy market resulting from the war in Ukraine.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;With public spaces closed throughout 2020, and demand for heat and electricity down, Dallas-based pipeline operator Energy Transfer saw revenues drop 28% to just under $39 billion; the business fell 22 spots on the Fortune 500 as a result. But shortly after the close of its 2020 fiscal year, the company controlled by billionaire CEO Kelcy Warren got a controversial boost: The winter storm that ground Texas to a halt in early 2021 led Energy Transfer to rake in an extra $2 billion. As much of the state of 29 million people went without gas and electricity, demand for supplies from the company’s storage facilities soared. That profit attracted a lawsuit from utility CPS Energy, arguing that prices for natural gas during the deadly storm were 15,000% higher than usual; tragedy shouldn’t be a “jackpot” for a business, the utility said. Energy Transfer, whose pipelines carry about a third of U.S. crude and natural gas, did not respond to a request for comment on the suit. &quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:215,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:222}">With public spaces closed throughout 2020, and demand for heat and electricity down, Dallas, Texas-based pipeline operator Energy Transfer saw revenues drop 28% to just under $39 billion; the business fell 105 spots on the Global 500 as a result. But shortly after the close of its 2020 fiscal year, the company, whose pipelines carry about a third of U.S. crude and natural gas, got a controversial boost: The winter storm that ground Texas to a halt in early 2021 led Energy Transfer to rake in an extra $2 billion. As much of the state of 29 million people went without gas and electricity, demand for supplies from the company’s storage facilities soared. That profit attracted a lawsuit from utility CPS Energy, arguing that prices for natural gas during the deadly storm were 15,000% higher than usual; tragedy shouldn’t be a “jackpot” for a business, the utility said. In a statement, Energy Transfer said it sold the gas to CPS Energy "at a fully negotiated and transparent price of which they were fully aware before receiving and consuming the gas."

This year’s Fortune 500 marks the 67th running of the list.

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;With public spaces closed throughout 2020, and demand for heat and electricity down, Dallas-based pipeline operator Energy Transfer saw revenues drop 28% to just under $39 billion; the business fell 22 spots on the Fortune 500 as a result. But shortly after the close of its 2020 fiscal year, the company controlled by billionaire CEO Kelcy Warren got a controversial boost: The winter storm that ground Texas to a halt in early 2021 led Energy Transfer to rake in an extra $2 billion. As much of the state of 29 million people went without gas and electricity, demand for supplies from the company’s storage facilities soared. That profit attracted a lawsuit from utility CPS Energy, arguing that prices for natural gas during the deadly storm were 15,000% higher than usual; tragedy shouldn’t be a “jackpot” for a business, the utility said. Energy Transfer, whose pipelines carry about a third of U.S. crude and natural gas, did not respond to a request for comment on the suit. &quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri, Arial&quot;,&quot;16&quot;:11}" data-sheets-textstyleruns="{&quot;1&quot;:0}{&quot;1&quot;:215,&quot;2&quot;:{&quot;6&quot;:1}}{&quot;1&quot;:222}">With public spaces closed throughout 2020, and demand for heat and electricity down, Dallas-based pipeline operator Energy Transfer saw revenues drop 28% to just under $39 billion; the business fell 22 spots on the Fortune 500 as a result. But shortly after the close of its 2020 fiscal year, the company, whose pipelines carry about a third of U.S. crude and natural gas, got a controversial boost: The winter storm that ground Texas to a halt in early 2021 led Energy Transfer to rake in an extra $2 billion. As much of the state of 29 million people went without gas and electricity, demand for supplies from the company’s storage facilities soared. That profit attracted a lawsuit from utility CPS Energy, arguing that prices for natural gas during the deadly storm were 15,000% higher than usual; tragedy shouldn’t be a “jackpot” for a business, the utility said. In a statement, Energy Transfer said it sold the gas to CPS Energy "at a fully negotiated and transparent price of which they were fully aware before receiving and consuming the gas."

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

The share price of this Dallas-based pipeline operator got a boost in April 2020 after Blackstone Group disclosed a 6.9% stake in the company. That investment turned the private-equity giant into Energy Transfer's biggest shareholder after founder and CEO Kelcey Warren, who owns a majority stake. Energy Transfer's profits shot up 112% last year, and the company delivered bulging dividends in 2019 and early 2020. But investors will have to weigh the rich yield the company offers against a significant impediment: an energy market battered by the novel coronavirus pandemic.

This year's Fortune 500 marks the 66th running of the list.

The share price of this Dallas-based pipeline operator got a nearly 10% bump in April 2020 after Blackstone Group disclosed a 6.9% stake in the company. That investment turned the private-equity giant into Energy Transfer's biggest shareholder after founder and CEO Kelcey Warren, who owns a majority stake. Energy Transfer's profits shot up 112% last year, and the company delivered bulging dividends in 2019 and early 2020. But investors will have to weigh the rich yield the company offers against a significant impediment: an energy market battered by the novel coronavirus pandemic.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Founded in 1996, Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, including natural gas storage facilities, more than 12,000 miles of intrastate natural gas transportation pipelines, and almost 21,000 miles of interstate natural gas pipelines. It offers natural gas compression services and carbon dioxide and hydrogen sulfide removal services, and manages coal and natural resources properties. It also sells standing timber, leases coal-related infrastructure facilities, sells and distributes gasoline, and has a limited partnership with the motor fuel company Sunoco.

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Energy Transfer (ET): Company Profile, Stock Price, News, Rankings

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Energy Transfer

energy transfer

Good morning, and welcome to the Energy Transfer first quarter 2026 earnings call. All participant lines have been in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then 1 on your touchstone phone. To withdraw your question, you may press star and then 2. Please note this event is being recorded. I would now like to turn the conference call over to Mr. Tom Long, Co-Chief Executive Officer. Thank you, and over to you.

Thank you, operator. Good morning, everyone, and welcome to the Energy Transfer first quarter 2026 earnings call. I'm also joined today by Mackie McCrea, Dylan Bramhall, and other members of the senior management team who are here to help answer your questions after our prepared remarks. Hopefully, you saw the press release we issued earlier this morning.

As a reminder, our earnings release contains an update to guidance and a thorough MD&A that goes through the segment results in detail. We encourage everyone to take a look at the press release, as well as the slides posted to our website to gain a full understanding of the quarter and our growth opportunities. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934.

These statements are based upon our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our Form 10-Q for the quarter ending March 31, 2026, which we expect to file later this week. I'll also refer to Adjusted EBITDA and distributed cash flow, or DCF, both of which are non-GAAP financial measures.

You'll find a reconciliation of our non-GAAP measures on our website. Let's start today by going over our financial results for the first quarter of 2026. We generated Adjusted EBITDA of approximately $4.9 billion compared to approximately $4.1 billion for the first quarter of last year. DCF attributable to the partners of Energy Transfer, as adjusted, was approximately $2.7 billion compared to approximately $2.3 billion for the first quarter of 2025.

These results were supported by strong operations, including record midstream gathering volumes, NGL fractionation volumes, NGL export volumes, and crude oil transportation volumes for the quarter.

For the 1st quarter of 2026, we spent approximately $1.5 billion on organic growth capital, primarily in the intrastate NGL and refined products, midstream, and interstate segments, excluding Sun and USA Compression CapEx.

Turning to our 2026 guidance. As a result of our strong 1st quarter performance across our segments as well as revised expectations for the rest of 2026, we now expect our 2026 Adjusted EBITDA to range between approximately $18.2 billion and $18.6 billion compared to the previous range of between approximately $7.45 billion and $17.85 billion.

This includes a beat of approximately $500 million and the capture of our full year optimization target in the first quarter, as well as the expectations for continued outperformance for the balance of the year. Turning to organic growth capital guidance. We now expect 2026 organic growth capital guidance to be between approximately $5.5 billion and $5.9 billion compared to our previous guidance of approximately $5 billion-$5.5 billion, excluding Sunoco and USAC.

This increase is primarily a result of the addition of several new growth projects, including the construction of the new Springerville Lateral off our existing Transwestern Pipeline, the construction of pipelines and meter stations to provide natural gas to various power plants and data center sites in Oklahoma and Arkansas, accelerated timing on longer-term projects like Desert Southwest and FGT capital spin, and gathering system and compression build-out in the midstream segment, primarily in the Permian Basin associated with recent contract and acreage dedication extensions.

I will provide additional details about these projects later in the call. Beyond these projects, we continue to have a significant backlog of opportunities that are expected to support future growth. Turning to our results by segment for the first quarter, we'll start with NGL and refined products.

Adjusted EBITDA was approximately $1.2 billion compared to approximately $978 million for the first quarter of 2025. We saw higher throughput across our Gulf Coast pipeline operations and record performance at our Mont Belvieu fractionators. In addition, new chilling capacity placed into service last year contributed to a $50 million increase in earnings, as well as record export volumes from our Nederland terminal in the first quarter.

This more than made up for fog delays experienced in the fourth quarter of 2025. During the first quarter of 2026, we realized higher gains of $65 million due to the timing of the settlement of NGL and refined product inventory hedges, which offset losses realized in the fourth quarter of 2025.

Results for the quarter also included an increase of approximately $50 million from higher premiums from the sale of propane and butane for both export and domestic supply, as well as approximately $25 million increase due to inventory write-down losses realized in the first quarter of last year.

For Midstream, Adjusted EBITDA was approximately $887 million compared to approximately $925 million for the first quarter of 2025. Base business earnings increased primarily due to growth in the Permian Basin, where we saw volumes up 8% related to new and upgraded processing plants brought online since the first quarter of last year. In addition, we saw a $25 million decrease due to lower NGL natural gas prices compared to last year.

As a reminder, the first quarter of last year included the recognition of revenue of $160 million from Winter Storm Uri. For the crude oil segment, Adjusted EBITDA was approximately $869 million compared to approximately $742 million for the first quarter of 2025. During the quarter, we saw continued growth across several of our crude oil pipeline and gathering systems.

Results also included a $60 million increase related to favorable impacts to our crude oil inventory value as a result of rising crude oil prices. We expect these gains to be mostly offset with hedge losses during the second quarter of this year. We recognized $43 million of revenue that had previously been reserved related to the recontracting and extension of a legacy shipper contract during the recently completed successful DAPL open season.

We had lower expenses due to a $43 million adjustment to an accrual for a litigation-related contingency. In our interstate natural gas segment, Adjusted EBITDA was approximately $519 million compared to approximately $512 million for the first quarter of 2025. This increase was primarily due to higher contracted volumes at higher rates on several of our pipelines, including Panhandle Eastern, Trunkline, Florida Gas, and Transwestern.

For our intrastate natural gas segment, Adjusted EBITDA was approximately $437 million compared to approximately $344 million in the first quarter of 2025. This was primarily due to an increase of approximately $100 million from Winter Storm Fern. The results for the first quarter show how incredibly well-positioned our assets are across the country.

Combining our extensive pipeline network, our storage facilities, and our terminals with our exceptionally experienced optimization and operating teams, we were able to capitalize on quickly changing dynamics and market volatility. For a closer look at some of our major projects, I'll start with the natural gas side of our business, where we continue to see significant demand for our services. We're making good progress on our Desert Southwest Pipeline project.

In March 2026, Transwestern Pipeline initiated the FERC pre-filing process for the project as previously scheduled. We expect to file the formal certificate application with FERC in the fourth quarter of this year. In April, as a continuation of our comprehensive stakeholder engagement program, we hosted 15 open houses in communities along the entire proposed pipeline route throughout Texas, New Mexico, and Arizona.

Our teams continue to actively engage with elected officials, county leadership, landowners, and associated communities along the route to communicate project information and updates. We have engaged with over 500 stakeholders to date.

Our discussions have continued to be very positive as existing and potential stakeholders learn more about the expected economic benefits and realize the critical need for a dependable supply of natural gas to help with the transition from coal-fired generation to natural gas-fired generation, and to help address significant power needs in the coming years, driven by population and demand growth in Arizona and New Mexico markets.

We expect this pipeline to be in service, providing a reliable energy source by the fourth quarter of 2029. On the existing Transwestern Pipeline, we recently approved the construction of the new Springerville Lateral, an approximately 120-mile, 30-inch pipeline that will have a capacity of approximately 625 million cu ft per day and extends south to new natural gas-powered generation that is expected to replace 2 coal-fired plants.

This project is backed by 20-year agreements and is expected to be in service in the fourth quarter of 2029. Total growth capital for this project is expected to be approximately $600 million. New construction of our Hugh Brinson Pipeline is going well. We continue to expect Phase 1 to be in service in the fourth quarter of this year upon the full build-out of the 400-mile pipeline and associated compression required to move 1.5 Bcf per day of gas to customers' contractual delivery points.

However, if we stay on our current schedule, we will have the ability to begin flowing some gas early in the third quarter, which is prior to placing Phase 1 into service. We continue to expect Phase 2, which includes additional compression, to be in service in the first quarter of 2027.

The pipe is fully contracted from west to east, and we also have a growing amount of backhaul volumes committed that are expected to add significant upside. Turning to Florida Gas Transmission, or FGT. In February, we completed open seasons for two new projects that are supported by 15-25-year long-term agreements with anchor shippers, the Phase IX project, which is designed to expand firm natural gas transportation capacity to multiple new and existing meter stations located across FGT's market area.

This project will consist of the construction of approximately 90 miles of pipeline looping, as well as new and upgraded compression, with an anticipated capacity of approximately 525 million cu ft per day. We recently locked in pipe for delivery at the end of 2027, and compression for delivery in the first quarter of 2028, and we continue to expect the project to be available for service in the fourth quarter of 2028. The South Florida project is designed to enhance the reliability of critical infrastructure and increase overall deliveries in South Florida.

The project has a condition precedent, but once we reach FID, it will consist of the construction of an approximately 40-mile extension with a capacity of approximately 230 million cu ft per day, along with compression and a new meter station, and is expected to be available for service in the first quarter of 2030.

Energy Transfer's share of the cost for these two projects is expected to be approximately $565 million and approximately $110 million respectively, depending upon final shipper volume elections. We continue to make progress on a new storage cavern at our Bethel Natural Gas Storage Facility, which is expected to double our working gas storage capacity at the facility to over 12 BCF.

In February, our intrastate power team added connections to serve three new power plant loads in the state of Oklahoma. We have since added a fourth connection for a total of approximately 300 million cu ft per day of new gas supply. The first of these connections is in service, with two more expected in service in the third quarter of this year.

The remaining connection is expected to be in service in the fourth quarter of 2028. These connections are supported by long-term contracts with investment-grade counterparties. In addition, we have entered advanced negotiations to serve another 400 million cu ft per day of new power plant demand in Oklahoma.

Since our last earnings call, Energy Transfer has entered into agreements to provide long-term firm natural gas transportation services through our Texas intrastate system to support the Nexus Hubbard campus located in Central Texas, where Nexus is constructing a behind-the-meter AI hyperscale campus powered by on-site natural gas generation.

Initial volumes are expected to be approximately 150 million cubic feet per day, with certain rights by the transporter to increase its capacity upon election. Costs associated with this project are expected to be fully reimbursed, and it is expected to be in service by the end of this year. In addition, we recently entered into a LOI to provide approximately 150 million cu ft per day of firm natural gas transportation service through our EGT pipeline to support a new data center site in Arkansas.

The facility is expected to be in service in mid-2027. Energy Transfer also previously entered into a 20-year binding agreement with Entergy Louisiana to provide at least 250,000 MMBtus per day of firm transportation service to fuel their facilities in Richland Parish, Louisiana.

To facilitate flow of this gas, we plan to construct an 18-mile lateral off of our Tiger Pipeline, for which our customer recently exercised their option to upsize the pipeline lateral to 36 inches. They continue to have an option to increase their commitment to up to 1 BCF per day.

In addition to these projects, we have multiple ongoing discussions with power plants to provide significant volumes and associated transportation revenues across 15 states which have a high likelihood of reaching FID. Looking at our Permian processing expansions. The 275 MMcf per day Mustang Draw I processing plant is currently being commissioned and is expected to be in full service next month. We expect volumes to ramp up quickly.

We continue to expect our 275 MMcf per day Mustang Draw II plant to be in service in the fourth quarter of this year. In our NGL segment, we placed the Gateway NGL Pipeline debottlenecking project into service in the first quarter of this year, providing increased deliveries of Delaware Basin liquids to Energy Transfer's NGL fractionation complex in Mont Belvieu.

Construction is also underway on a new 3 million bbl ethane storage cavern at Energy Transfer's NGL fractionation complex at Mont Belvieu. The cavern, which is expected to be in service in the second half of 2027, will help support our ninth fractionator at Mont Belvieu that is expected to be in service in the fourth quarter of this year, as well as future ethane export expansions.

At Nederland, we recently extended the vast majority of our ethane export agreements into 2041, adding 10 years to the current contracts. We are hopeful to be in the position for incremental Nederland ethane expansion in the coming months. In our crude oil segment, we continue to work with Enbridge on a project to provide capacity for approximately 250,000 barrels per day of light Canadian crude oil through our Dakota Access Pipeline. The open season is underway. We still expect to take FID of this project by mid-2026.

We have approved an expansion of the Bayou Bridge crude oil pipeline, which is expected to increase the capacity to up to approximately 600,000 bbl per day, depending on destination and product mix. This expansion is underpinned by a 10-year term extension and volume increase from a demand pull customer and is expected to be in service in Q1 of 2027.

I think as all of you can see, we had a lot of great things happen in the first quarter and many more exciting things on the way, which contributed to our increased EBITDA guidance for 2026. Our guidance each year is based upon expectations for the base business with minimal optimization included. In five of the last eight years, we have seen large spreads, optimization, and other opportunities that have provided significant upside to our base business.

These kinds of benefits, while one time in nature, highlight the unique ability of our business to consistently capture significant upside during market volatility. While additional upside is expected to be dependent upon the duration and impact of current market disruptions and resulting commodity prices, our assets remain incredibly well-positioned to continue maximizing on these opportunities.

As a result, we are optimistic that some of the benefits we saw in the first quarter will carry over throughout the rest of the year, putting us in a position to achieve or exceed the high end of our guidance range. Additionally, we continue to expect the ramp-up of growth projects, including our FlexPort NGL export project, new Permian processing plants, Hugh Brinson, and others, which we expect will contribute to continued growth in 2026.

In particular, once our Hugh Brinson Pipeline is in service, it will be extremely well-positioned to become a major U.S. header system that ties together our network of large diameter pipelines, providing significant future upside. Our large slate of growth projects is contracted under long-term commitments and expected to generate mid-teen returns and considerable earnings growth over the next decade or more.

Completing these projects safely on time and on budget remains one of our top priorities for 2026. We also continue to see new growth opportunities across all aspects of our business, demonstrated by the announcement of several new projects this quarter, and we remain extremely well-positioned to help meet the substantial growth and demand for energy resources over many years to come.

We also remain very focused on capital discipline, targeting a long-term annual distribution growth rate of 3%-5% and maintaining our leverage target of 4 to 4.5 times EBITDA. In summary, because of the breadth of our assets, we have an unparalleled ability to transport large amounts of energy from all of the major supply basins to markets throughout the U.S.,

Including major trading hubs, power plants, data centers, city gates, industrial complexes, and other downstream markets, including international markets through our export terminals. This concludes our prepared remarks. Operator, please open the line up for our first question.

Thank you. We will now begin the question and answer session. To ask a question, you may press star and then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. At this time, we will pause momentarily to assemble a roster. We have the first question on the line of Michael Blum from Wells Fargo. Please go ahead.

Thanks. Good morning, everyone. Wanted to just start kind of high level, in light of the Middle East conflict that's ongoing. Are you seeing any change in U.S. producer activity or messaging? I guess in a similar vein, would you expect to see any permanent shifts in where global buyers will be sourcing their hydrocarbons, perhaps leaning more heavily on the U.S.? Are you seeing any of that in your discussions yet?

Good morning, Michael. This is Mackie. Excuse me. As I look around the room, as you're asking that question, there's like five people that want to answer that question because we're so excited about where we sit and where our assets sit. Certainly, what's been going on in the world, there's a very clear redirection to the U.S. for all products, LNG, NGLs, oil, et cetera.

It really has emphasized the value of what this country offers and more importantly, what our partnership offers to deliver all these products around the world. If you talk about individual basins, it's all different. I think the major tenor throughout is optimism, not a rush to put a bunch of rigs in.

Even as of yesterday, one of our bigger customers out in the Midland Basin, Diamondback, they announced they're going to upsize and bring in more rigs. I think we're going to see it's kind of slow-moving, not a lot of talk, but I think it's very evident that we're going to see more and more rigs moving in as more countries and companies turn to the U.S. for supply, regardless of how long that war may last.

An example is in North Louisiana, Haynesville, excuse me, we're projecting about 800,000 Mcf of growth into our processing, treating, and downstream assets in North Louisiana by August or September. Clearly, the producers in North Louisiana are drilling and are going to bring on DUCs as we proceed deeper into this year, and we think that's going to continue for many years to come.

We love where our assets are. We're very excited about the future of growth, of drilling. Not real clear how quickly all the companies and all the basins are gonna pick up, but the bottom line is there's gonna be increased drilling. Increasing bringing on new wells from DUCs throughout the country, and we're very excited about where we sit.

Thanks for that, Mackie. Appreciate it. Maybe just to ask specifically on the LPG exports. First of all, can you just remind us what % of your capacity is contracted versus open? Are you seeing any increase in demand for contracted capacity? Do you think potentially you could see length of contracts or just rates kind of trend higher over time? Thanks.

Gosh, kind of yes to all the above. As I mentioned earlier, whether we're meeting with companies or looking at building assets over here and/or buying products over here, everybody's turning to the U.S. We're extremely well-positioned there. Good or bad, our strategy as a company is looking long term.

Whether it's LPG or natural gas, whatever it is, we're looking to extend out into the 2030s and 2040s as much as our business possible. Our team did a great job at good, healthy rates of extending our LPG business well into 2030s. Regretfully, we don't have a bunch of spot, but we have 4 or 5 ships where we could be printing a lot more money. Fortunately, we do have spots available at the Flexport project too, that we just completed, that we're starting to fully ramp up.

We do have at least one or two slots a month that we can benefit from these higher spreads. To answer the final part of your question, we do think this will bring about longer terms and stronger margins as time goes on, as everybody leans on the U.S. for supply.

Thank you. We have the next question from the line of Gabe Moreen from Mizuho. Please go ahead.

Hey, good morning, team. Just wanted to ask about guidance. It sounds like on the one hand in the slides, you didn't really shift your allocation between spread and commodity-based margins through the year, and you're using the forward curves. On the other hand, I think you noted in your remarks you're hopeful to exceed guidance or the upper end of the guidance here if things persist.

Can you just maybe talk about some of the moving pieces? I know it's pretty considerable, and maybe sort of the assumptions on commodity versus forward curve and what you're really baking in for the rest of the year here with this guidance, Tom.

Sure, Gabe. Let me walk you through some additional thoughts around on the full-year guide. I think it'll help clear some of this up. We had an incredible first quarter. Tom just walked through the fact that we beat our internal plan by $500 million, plus achieved our full-year target for optimization earnings.

Out of the $500, I wanna point out that, you know, about $300 million of that would probably be considered one time, as we describe it. As Tom pointed out, we call it one time, but we see this almost every year at Energy Transfer with our assets and people. How much of that really you call one time is up to the individual, I guess.

The rest of it's really a result of the tailwinds to the business. You know, as you see, we raised guidance by $750 million at the midpoint. This is really based on line of sight to the continued outperformance across the majority of the segments. It's everything. It's volumes, it's rates, it's spreads.

That's why you didn't see us update that pie chart there. It's really permeating everything we do here. A lot of this, you know, as a result of the conflict in the Middle East, making it clear, as Mackie pointed out, the need for these reliable U.S. energy supplies. That's increasing the demand and the volumes and rates.

You know, while we in Energy Transfer, we pray for a resolution to this conflict, we feel that it's very likely that the supply and product flows will need an extended amount of time to return to some form of normalcy on the back end of this. It's likely they'll never go back to exactly how it was pre-conflict.

We saw this with the Ukraine conflict, and today's issues just drive home even more the need to the reliability of the energy from the U.S. here. As we look through the balance of the year, from the commodity price standpoint, that midpoint of the guidance range, I think you could say is based on a conservative price deck going forward.

If prices remain in anywhere near where they are right now, that will push us to that high end of the guiding range and potential to exceed that. I think that should help clear up how we're thinking about the balance of the year here.

Thanks, Dylan. Maybe if I can just follow up with a question on Desert Southwest and the Springerville Lateral. I'm just curious whether the volume heading to that lateral was contemplated in the original 2.3 BCF on Desert Southwest or whether there's potentially any upsizing to the base project.

Also as far as potential for further laterals along those lines. I know you've talked about the potential to upside the pipe. Lastly on that, anything changed in terms of the regulatory approval or timelines given the lateral associated with the project now?

Yeah, this is Mackie again. Kind of separate topics. Talking about the Springerville Lateral, that's tied as Tom mentioned, to the retirement of some coal plants, replacing it with natural gas-fired generation. We believe that the majority of that gas will come from either the San Juan Basin and/or from the Permian Basin.

Are there other lateral opportunities off that? Sure. There's always gonna be stuff we're looking at. Separate that from your question on Desert Southwest. Absolutely. All along, through New Mexico and especially in Arizona, there are numerous opportunities to lay laterals to different power plant opportunities and different customers. Our team is constantly chasing that.

There's a lot of volume, a lot of demand that we're chasing. We have zero concerns about selling the remaining portion of that gas through our largest pipeline that's ever been built in the U.S. once we complete it.

Once again, like all of our assets, we're gonna do the best we can to add value on assets that are already in the ground. The Springerville customers can ultimately source through gas from anywhere on the TW system, but the vast majority of it will come from Permian Basin or San Juan.

Thank you. We have the next question from the line of Theresa Chen from Barclays. Please go ahead.

Good morning. Going back to the macro side of things, assuming an uptick in U.S. production materializes and accelerates from here, can you talk about the operating leverage across your system to the extent where ET can handle incremental volumes without deploying additional CapEx? More broadly, where do you see the critical bottlenecks likely to arise, either for the industry or across your assets in particular? How does that translate to additional opportunities for Energy Transfer?

Yeah. Theresa, as far as the operational leverage, let me kick off, and I'll turn it over to Mackie to give some additional detail here. When you look at our systems, particularly in midstream, we've got a lot of capacity available or idle capacity we can bring back online quickly across across the MidCon.

We've got a lot of capacity in the Eagle Ford. We've got a lot of capacity in our gathering systems in the Haynesville and in the Northeast. We've got, you know, some pipeline capacity throughout various pipeline systems. We've got capacity to move NGLs out of the Permian Basin, out of the Eagle Ford.

I think those would be the first places I'd point where we have capacity either available or quickly available that we could bring online with little to no capital and be able to move significantly higher volumes. That's probably what based on the operational leverage. Mackie, I don't know if you want to comment any more on bottlenecks in the system or-

Yes. Thanks, Dylan. Yeah. As far as bottlenecks, it makes me think about, for example, our NGL segment. As we, as Tom read and as we released this morning in our press release, is that we had record levels from the wellhead, so to speak. From an NGL perspective, we had record transportation revenues and volumes.

We had record fractionation volumes. We had record terminal volumes. We had record export volumes. When you talk bottlenecks, we kind of try to stay ahead of it. Right now, as everybody knows, we completed FlexPort Two. We are slowly ramping that up and benefiting from whether ethylene or ethane or propane are the best priced margins. We're able to benefit from that, we're trying to stay ahead of it.

As Tom mentioned earlier, we are way down the road and very optimistic on another announcement of a major ethane expansion. The way to avoid bottlenecks is to stay ahead of it, and that's what we're trying to do, is stay ahead of the production as it comes on. We're building crudes as quickly as we can to fit the needs of our customers, downstream transport pipeline capacity, as well as frack, and in this case, export capability.

Outside of that, you know, could you say there's a bottleneck in the Permian Basin today? Absolutely. By the end of this year, first part of next year, that bottleneck's gonna open up, and there's gonna be enormous opportunities for producer to drill away as much as they want to drill because there'll be plenty of capacity for, you know, number of years to come.

Really bottleneck-wise, don't really see anything anywhere else. We try to stay ahead of where the production and where our customers are growing and connecting that with the markets downstream and, you know, very excited about our ability to kind of stay ahead of that and create more value for our partnership.

Great. Thank you. For the gas transmission projects, related to delivering gas supply for data centers or power generation in general, some of these expansions seem relatively capital light, so maybe not coming with a huge uplift in EBITDA from the project itself. What proportion of them would you say have synergistic upstream opportunities where Energy Transfer brings the gas supply and/or these projects can pave the way for expansion upstream of the current projects?

This is Mackie again. If you think about Hugh Brinson, it's coming online, we're gonna start ramping it up next quarter, we will have a full phase 1 in service by the end of the year. That gives us the ability to do a lot of things, as we've said in our statements before and we've said today, to swing volumes where volumes are needed, where the markets are the greatest demand. If you look at that system and what Hugh Brinson does for our entire intrastate pipeline network in Texas, we already have deals.

We're working on additional transactions, where to your point, not a lot of capital, but we're gonna be able to flow more and more backhaul volumes out of the Maypearl area, south of Dallas-Fort Worth, out of East Texas, even from Katy, where we're very close to signing a large transportation deal to a data center, and the source supply is going to be Katy.

We have such a fungible system that has the ability, especially with our massive storage capabilities in the Houston, North Texas area and growing and expanding those. We have enormous capacity to really grow our volumes in a lot of cases without adding much capital.

As we've said before, we look at our assets, especially our pipeline assets across the country, and we couldn't be more pleased and really more fortunate to be located in such great areas where data centers are built right on top of us, and we're able to benefit not only from normal flows, like in Texas, west to east, but now we're gonna be able to benefit in multiple directions. Sourcing the best place to supply for our customers to the market demand areas they're asking us to deliver gas to.

Thank you. We have the next question in line of Jeremy Tonet from JPMorgan. Please go ahead.

Just wanted to continue with the bottlenecks theme, if I could. You know, thinking about the Permian and thinking about the processing side specifically. Just wondering if you could share any thoughts on how you think the cadence of future processing plants might unfold. We saw some competitors announce some new plants this quarter. Just wondering any, you know, color you could provide there and how you see that developing.

Okay, this is Mackie again. Brian and Alex and our G&P team have done such a great job. We hear about announcements from all our competitors and their plants, and we just kind of pay attention to what we do. What we don't do is get ahead of ourselves. We're not gonna go out and build a bunch of cryos that aren't fully sold out and fully committed to.

That's why maybe we haven't announced as many as some of our competitors or especially in the future. We're very excited about the 550,000 Mcf that we'll have on by the third quarter. One of those coming on here next month. We will always take a look at when is the next one due to come on.

Energy Transfer (ET) Q1 2026 Earnings Call Transcript

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