The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

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.

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.

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.

Q2 2026

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Q4 2024

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

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Energy Transfer

energy transfer

Mode. Please note this event is being recorded. I would now like to turn the conference over to Mr.

Tom Long, Co Chief Executive Officer. Please go ahead, sir.

Thank you, operator, and good afternoon, everyone, and welcome to the Energy Transfer fourth quarter twenty twenty four earnings call. I'm also joined today by Mackie McCree 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 afternoon. As a reminder, our earnings release contains a thorough MD and A that goes through the segment's results in detail, and we encourage everyone to take a look at the 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 1E of the Securities Exchange Act of 1934.

These statements are based upon beliefs as well as certain assumptions and information currently available to us and are discussed in more details in our Form 10 K for the year ended 12/31/2024, which we expect to file this Friday, February 14. I'll also refer to adjusted EBITDA and distributable cash flow or DCF, both of which are non GAAP financial measures. You will find a reconciliation of our non GAAP measures on our website. Let's start today by going over the financial results for the full year 2024. Adjusted EBITDA was $15,500,000,000 which came in at the high end of our 2024 guidance range.

This was up 13% over 2023 and was a partnership record. DCF attributable to the partners of Energy Transfer as adjusted was $8,400,000,000 which was up 10% over 2023 and was also a partnership record. Operationally, we've moved record volumes across our interstate, midstream, NGL and crude segments for the year ended 2024. In addition, we exported a record amount of total NGLs out of our Needle and Marcus Hook terminals. For the fourth quarter of twenty twenty four, we generated adjusted EBITDA of $3,900,000,000 compared to $3,600,000,000 for the fourth quarter of twenty twenty three.

We continue to see strong volumes during the fourth quarter, including increased throughput across the majority of our segments. DCF attributable to the partners of Energy Transfer as adjusted was $2,000,000,000 consistent with the fourth quarter of twenty twenty three. And for the full year of 2024, we spent approximately $3,000,000,000 on organic growth capital, excluding SUN and USA Compression CapEx. These investments were primarily in the Midstream NGL and Refined Products segments. Now let's turn to the results by segment for the fourth quarter, and I'll start with NGL and Refined Products.

Adjusted EBITDA was $1,100,000,000 compared to $1,040,000,000 for the fourth quarter of twenty twenty three. This was primarily due to higher throughput and higher rates across our Gulf Coast and Manner East pipeline operations. We also had strong NGL exports and increased profits from the optimization of hedged NGL inventory. For Midstream, adjusted EBITDA was $7.00 $5,000,000 compared to $674,000,000 for the fourth quarter of twenty twenty three. The increase was primarily due to higher volumes in the Permian Basin, which was related to a 9% increase in legacy Permian throughput as well as the addition of the Crestwood and WTG assets in November of twenty twenty three and July of twenty twenty four respectively.

This was partially offset by decreased volumes in dry gas regions as a result of low natural gas pricing and increased operating expenses from recent acquisitions. For the Crude Oil segment, adjusted EBITDA was $760,000,000 compared to $775,000,000 for the fourth quarter of twenty twenty three. During the quarter, we saw growth across our crude gathering systems as well as contributions related to the recently formed Permian joint venture with Sun and the acquisition of Crestwood. These were offset by lower transportation revenue, primarily on the Bakken pipeline and reduced earnings from marketing. In the Interstate Natural Gas segment, adjusted EBITDA was four ninety three million dollars compared to $541,000,000 for the fourth quarter of twenty twenty three.

During the quarter, we saw higher demand on Panhandle, Trunkline, Gulf Run and FCT. This was offset by lower interruptible utilization, reduced rates on Panhandle and increased operating expenses. And for our intrastate natural gas segment, adjusted EBITDA was $263,000,000 compared to $242,000,000 in the fourth quarter of last year. The increase was primarily due to increased gains related to pipeline and storage optimization opportunities. Now turning to our 2025 organic growth capital guidance and our growth projects.

First, I'm pleased to say we recently approved the construction of the Mustang Draw processing plant in the Midland Basin. Now for our growth capital expenditures. Given our wealth of opportunities, we expect to spend approximately $5,000,000,000 in 2025. To provide more color by segment, this spend includes approximately $1,400,000,000 in our intrastate natural gas segment, which includes approximately $1,300,000,000 related to the recently approved Hugh Branson pipeline, as well as additional spend related to small laterals and tie in projects supporting new demand growth on our Texas pipelines. In the NGL and Refined Products segment, we expect to spend approximately $1,400,000,000 in 2025.

This includes approximately $1,100,000,000 on the needle and flex board expansion, Frac 9, Marcus Hook optimization, Lone Star Express optimization, Sabena 2 NGL pipeline and storage upgrades at Mont Belvieu and Spinaltop. The projects are all focused on increasing our ability to meet the fast growing international demand for NGLs. Within the midstream segment, we expect to spend approximately $1,600,000,000 in 2025. This includes approximately $1,200,000,000 related to the Permian Basin processing expansions, treating upgrades, compression additions and well connects. Within the Crude Oil segment, we expect to spend approximately $295,000,000 primarily related to crude oil and water gathering in the Williston Basin, crude gathering build out in the Permian Basin, as well as optimization projects and well connects.

And within our interstate natural gas segment, we expect to spend approximately $170,000,000 largely related to smaller laterals and tie ins supporting new demand growth of our pipelines as well as optimization projects on FGT. In addition, in the all other segment, we expect to spend approximately $100,000,000 on new power generation facilities, which will make our critical transportation systems more reliable in the areas that we have significant electricity shortages or intermittent outages. Our projects are expected to achieve mid teen returns with most of them also providing incremental downstream benefits. Some of these projects are expected online later this year with the majority of these projects expected online in 2026. As such, we expect the majority of earnings growth from these projects to significantly ramp up in 2026 and 2027.

Now taking a closer look at some of our largest growth projects that are currently underway. In December, we FID Phase one of the Hue Brinson pipeline, which will provide significant incremental transportation capacity out of the Permian Basin to connect shippers to Energy Transfer's vast intrastate natural gas pipeline network and other downstream pipelines as well as access to the majority of gas utilities in every major trading hub in Texas. The first phase of the project, which is expected to be in service by the end of twenty twenty six, includes the construction of approximately 400 miles of 42 inches pipeline from Waha to Mapearl, Texas with a capacity of as well as third party processing plants in Martin and Midland, as well as third party processing plants in Martin and Midland Counties to the HughBrenton pipeline. We continue to have discussions with producers regarding Phase two of the project. If approved, Phase two would add compression to increase the capacity of the new pipeline to approximately 2.2 Bcf per day.

Combined cost to Phase one and Phase two are expected to be approximately $2,700,000,000 Completed project will be backed by long term fee based commitments with strong investment grade counterparties. This project is expected to further establish energy transfer as the premier option to support power plant and data center growth in the state of Texas. At our Needle And Terminal, we continue to make progress on the construction of our Flexport expansion project. The project will expand our NGL export capacity and remains on schedule for an anticipated in service for ethane and propane in mid-twenty twenty five. In addition, as the next phase of the project, we expect to begin ethylene export service in the fourth quarter of this year.

At Mont Belvieu, construction of our ninth fractionator is underway, which has a design capacity of 165,000 barrels per day is expected to be in service in the fourth quarter of twenty twenty six. This will bring our total fractionation capacity at Mont Belvieu to more than 1,300,000 barrels per day. In December of twenty twenty four, we completed the initial phase of the Sabena 2 pipeline conversion from Mont Belvieu to Nederland. This project increased the pipeline's capacity for multiple products from approximately 25,000 barrels per day to approximately 40,000 barrels per day. Ultimately, by mid-twenty twenty six, we expect to expand the pipeline to approximately 70,000 barrels to meet the growing demand for our natural gasoline products.

At our Marcus Hook terminal, we continue to see strong demand for our NGL exports out of this terminal. Construction continues on a 900,000 barrel refrigerated ethane storage tank and the addition of approximately 20,000 barrels per day of incremental ethane chilling capacity. This project will provide us with the ability to load DLECs much faster than we can today, which is very advantageous for many of our customers. Looking at our Permian processing expansions in 2024, we completed the 50,000,000 cubic feet per day upgrades to our Orla East and Grey Wolf processing plants. Construction continues on upgrades to two other processing plants, which we expect will add incremental processing capacity in West Texas of approximately 100,000,000 cubic feet per day by the end of the first quarter of twenty twenty five.

In addition, construction of the 200,000,000 cubic foot per day Badger processing plant in the Permian Basin is underway. As a reminder, this plant, which is expected to be in service in mid-twenty twenty five, will utilize the idle plant that we are relocating to the Delaware Basin. Also due to significant demand, we are moving forward with the construction of another processing plant in the Midland Basin, the Mustang Draw plant. We'll have the capacity of approximately two seventy five million cubic feet per day and is expected to be in service in the first half of twenty twenty six. Also in December, we announced a twenty year LNG sale and purchase agreement to supply two tons of LNG per annum to Chevron USA Inc.

Related to our Lake Charles LNG project. We continue to make progress toward full commercialization of this project, which we believe and many of our customers believe is the most compelling LNG project on the Gulf Coast. Now for a brief update around our power generation opportunities. Since our last call, the level of activity from demand pull customers has remained strong and we are in advanced discussions with several other facilities in close proximity to our footprint to supply, store and transport natural gas for natural gas power plants, data centers and industrial and onshore manufacturing. In the fourth quarter, we executed a deal on our EOIT pipeline for 90,000,000 cubic foot per day that is expected to come online in 2026.

And we have recently completed several agreements with electric utilities in the Midwest to provide connections for new natural gas fired generation that is replacing coal fire generation. Yesterday, we were excited to announce that we have entered into a long term agreement with cloudburst data centers to provide natural gas to their flagship AI focused data center development in Central Texas. Subject to Cloudburst reaching FID with its customers, Energy Transfer would use its Oasis pipeline to provide up to 450,000 MMBtus per day, a firm natural gas supply to Cloudburst next generation data center campus outside of San Marcos, Texas. The natural gas supply would be sufficient to generate up to approximately 1.2 gigawatts of direct or behind the meter power. This project represents our first commercial arrangement to supply natural gas directly to a data center site and it will not be the last.

In aggregate, we have now received requests for potential connections to approximately 62 power plants that we do not currently serve in 13 states and up to 15 plants that we already serve today. In addition, we have now received requests from over 70 prospective data centers in 12 states. Given Energy Transfer's extensive natural gas infrastructure, we continue to believe that we are in the best position to capitalize on the anticipated rise in natural gas demand. As a reminder, to support our own operations and increase system reliability for energy transfer and our customers in Texas, we are constructing eight ten megawatt natural gas fired electric generation facilities. The first of these facilities was placed into service last week and the remainder expected to be in service throughout 2025 and 2026.

Now turning to our adjusted EBITDA guidance, we expect our 2025 adjusted EBITDA to be between $16,100,000,000 and $16,500,000,000 which is up approximately 5% from 2024 at the midpoint and supported by our industry leading business. We're currently executing on a large opportunity set of growth projects and we're excited to deploy capital on these impactful opportunities that are expected to provide strong returns and a significant growth trajectory through the end of the decade. Before we conclude, I would like to reiterate the three main themes in the midstream sector that we see driving this critical growth. First, we will continue to see strong volume growth out of the Permian Basin where we will continue to invest capital in our midstream assets. This growth will continue to feed our intrastate segment where we have an expansion underway that will help meet power and data center demand in Texas as well as feed our downstream NGL business.

Second, the broader consensus combined with the number of inbounds we're receiving suggest that natural gas fuel power demand will increase significantly in the future. We believe the growth needed to accommodate this demand will be significant, and we are in a unique position to capitalize on this opportunity set as demonstrated by yesterday's press release regarding our new partnership with Cloudburst for their planned data center. Lastly, the global demand for U. S. NGL production remains strong and continues to support further development of our NGL infrastructure.

Our extensive asset base and the diversity of our product offering is allowing us to deploy capital across all three of these themes. And this gives us great visibility into our ability to grow this one of a kind franchise for years to come. This concludes our prepared remarks. Operator, please open the lines up for our first question.

Thank you. We will now begin the question and answer session. And the first question will come from Theresa Chen with Barclays. Please go ahead.

Good afternoon and thank you for taking my question. Pretty significant uptick in the growth outlook as far as project backlog goes. Can you talk about the returns that you're seeing? Have they evolved or changed at all with these incremental projects?

Yes, Theresa. Hello, this is Mackie. Nothing has really changed over the last couple of years. We are always kind of targeting depending on the project kind of that mid teen to upper teen rate of return. A lot of that depends on how much synergistic benefits up and down, but that's kind of the range that we look at on these projects, kind of the mid to upper teens.

Okay. And related to your intrastate project, Huebrenson, interesting that you put Abilene as a marker as one of the towns that the pipeline runs directly through. Any reason for that that you want to articulate on and just a look on the backlog of these kinds of demand pulp projects for that pipeline that could push forward the second phase?

Yes. Let me start out first saying how excited we are about that project. It's been a while since we built a 42 inches for years. We were building one back every month. We were building a new pipeline seem like.

But we're very excited about that. The producers in the Permian Basin need it desperately. We've seen 10 bcf of growth over the last four or five years out of that basin. We think we'll go up another six to seven over the next four or five years. So what a shot in the arm for them.

And then the market pull, it's significant not only in Texas, but other parts of the Southeast that our systems will hopefully feed into. So we're extremely excited about that. But it is interesting. Your question, even preparing for this call, I got to think about you look at where many of the data centers are going, especially in Texas, but also throughout the Southwest, Southeast and up the Midwest. And it's almost as if energy transfer was working years ago to figure out where the best spots are for these data centers, because if you look at them, the vast majority of them are within several miles of our pipeline.

So we feel extremely fortunate all these assets that we build, all these pipelines that we built for the purpose of moving products from point A to point B, we really never envisioned there will be this kind of power plant demand growth both for data centers and others that are just right on top of significant part of our pipeline. So yes, Abilene has been had a little press with Stargate. We do see that as a highly potential project for us. We are very well positioned to provide whatever is necessary there and we have our team working on that as well as Tom talked about numerous data center and power plant projects throughout The U. S.

The next question will come from Keith Stanley with Wolfe Research. Please go ahead.

Hi, good afternoon. Wanted to start on the $5,000,000,000 growth CapEx for this year. Does that include any meaningful unsanctioned projects we may not know about? And then for the midstream piece, dollars 1,600,000,000.0 more than you've spent the past several years. Can you just give a little more detail on projects or where you're investing more than prior years in midstream?

Yes. This is Mackie again. Hi, Keith. The $5,000,000,000 those were projects we've synced. They're moving forward, great rate of returns, very, very excited about that.

And when you look at what's driving a lot of that is midstream. I mean midstream is kind of the call it the heart. It's what starts everything. It's where we gather and process and treat, compress and then put it into our system. It goes through our cryos and then the residue goes into our intra interstate pipeline networks and of course NGLs go into Lonestar and feed all that and then all of our crude business as well.

So it's a very viable important part and segment of our partnership. And when you look at Mustang draw, you look at these improvements we're making it very inexpensively to some of the trials we already have by increasing capacity. And we got Badger coming on as well this year. That's what's driving this. There's just an insatiable need for more cryogenic processing plants in the Permian Basin and we are so well positioned to benefit from that across our entire enterprise, including all of our downstream assets.

Thanks for that. If I could pivot to the Cloudburst announcement, wanted to confirm this is going to go to supporting a new gas fired power plant, not an existing plant. And then can you talk about the ramp that you foresee for the project? Should we assume this starts somewhat small and then you eventually ramp to the four fifty million cubic feet a day or how should we think about it?

Yes. That question is very germane in the sense that every single data center we're talking to is a little bit different, has a little nuance to it. So this one in particular that you're asking about, they're very experienced. Their executive team has I believe they're advertising over one hundred and fifty years in data centers in U. S.

And Europe. We're very pleased to be partnered up with them on this one. They have significant contacts with the tenants or some of the owners as you all know who many of these are. We are very optimistic they will get this to the finish line, but it is something that they'll have to scale up. They do believe that they very likely could get us as high as 450,000 a day.

That's why they secured that amount of supply and we'll know a lot more. We possibly could know a lot more by the end of the next quarter, but we'll see and we'll continue to work closely with them and other developers. We're very excited about this first project. We're learning a lot about data centers. Data centers are learning a lot about the natural gas business and how critical it is to what they're doing.

And man, we couldn't be more pleased and excited about this new business because as I mentioned earlier and we said in our open remarks, there's no company in The United States that is close to as well positioned to provide natural gas supply to many of these data centers, especially in Texas and Oklahoma and Louisiana.

Thank you. The next question will come from Jeremy Tonet with JPMorgan. Please go ahead.

Just want to follow-up on the last one, Cloudburst here. It seems like you have a lot of confidence in this project overall having PR ed it. And just wondering if you could talk a bit more on how to quantify, I guess, how you see the TAM, what you expect for win rate or just any way to frame with numbers, I guess, what this could mean for energy transfer?

Okay. Well, we'll go as deep as we can considering we do have an NDA. But one thing we've learned is there's five critical things for these data centers and the most important ones are energy. And so for example, this one will not only be tied to ERCOT, of course, will be tied to us with significant gas supply backed up by storage, natural gas power generation. They're also going to have diesel powered backup generation.

They're going to have backup batteries. So power is critical to these projects. And this particular company has significant amount of expertise, as I just mentioned, and they also have a very proprietary software system and because one of the most important variables is access to high bandwidth optical fibers and kind of with low latency, I guess, is what it is. And there's not a thousand places in The U. S.

Or certainly in Texas that fit all those variables where you have a reliable energy supply, where you have plenty of water for cooling, where you have plenty of land and where you have a bunch of redundancy. And so this fits so well with our assets and talking to them and kind of their expectations as they go to the primary tenant they're chasing, just kind of a little bit more transparency that they do believe that some of these turbines for this site are already ordered in an inventory. That could move this a lot quicker than what we have said. And so we're optimistic that we've on this particular one, we've aligned ourselves with a very strong company that knows what the heck they're doing with a lot of contacts out in the industry around data centers. And we are optimistic that they will ramp this up where they go all the way up to four fifty or three fifty remains to be seen, but we believe this will be a very successful project.

Got it. Makes sense. And just want to I guess follow-up with some of the comments on the prior call ending and just wondering with the new administration in place for a bit here and new policies being rolled out, just wondering if you could share how that impacts, I guess, what you see as your opportunity set, items such as Lake Charles or others, just any thoughts there would be great. Thanks.

Yes, my goodness. How wonderful is life after this election when we have a President and an administration that loves this country, that fully recognizes how blessed we are with not only fossil fuel resources, but a lot of resources, a lot of resources that are needed in this renewable push. And we have a businessman that built his career on trading, doing deals, negotiating, employing, creating numerous jobs throughout all the business he's been associated with. And what an incredible excitement we have around this administration and what it's going to do to mitigate just overwhelming regulation on all these assets to streamline regulations to where, yes, we're going to have regulations, but be sensible about it, put it where it's not doesn't take a great deal of time and can get products and can get resources and get energy to not only our domestic and our U. S.

Customers and population, but also to the international market. So, yes, needless to say, the Energy Transfer and our executive team and the vast majority of our employees are very excited about what's happening and we think it's going to be huge for our industry, huge for our partnership and huge for this country and the world.

Got it. Any other updates on Lake Charles, I guess?

Sure. In fact, we have a team over in London right now, had some really good reports back. So as everybody knows, there are two things we're kind of waiting for is to get a good solid contract at the price that works and get that snowball going. We did that with Chevron back I believe late November, early December. They're actually an advocate of ours now, had lunch with them last week.

They do believe we have the best project and they're pushing others to really take a close look if they aren't already looking at our project. We have, gosh, over 20,000,000 tons we're negotiating with. We have a really strong equity partner that we're now in negotiations with for a considerable amount of equity. So the stars are kind of lining. I mean, we've got a lot of work to do.

We're not going to undersell that, but we do have a project that's in an excellent location with pipeline infrastructure, much of which is already there with the great terminal, with tanks that are already there with this brownfield project. So we're very excited about it. We're going to push hard and we certainly hope to get to FID sometime probably in the fourth quarter of this year.

The next question will come from Manav Gupta with Credit Suisse. Please go ahead.

Hi, it's Manav with UBS. Quick question. When you look at all the power demand whether it's data center or it's coal to natural gas or even the incremental natural gas demand associated with LNG, using your crystal ball, how much do you think the natural gas demand could grow in the next five or seven years?

This is Mackie again. It's all across the board. You look at some of our peers, you look at some of the companies that do studies on this, it's hard to predict. We've done this ourselves internally because at the end of the day what matters most to us is how much of that market we capture and we believe over the next eighteen to twenty four months that we'll capture between three and four Bcf. That may sound aggressive, but we're chasing right now about 150 power plants, about half of which are either new power plants and or as we mentioned coal fired retirements that are going into it.

And then about half of those or maybe a little more are data centers. So this isn't just data center driven. This is electricity needs for growing populations, growing industry, even ammonia facilities, etcetera. So we're extremely well positioned to capture whatever the growth is, but we certainly seen numbers north of 10 or 12 Bcf. But we don't know where it's going to go.

We just know it's going to be big and we're going to play a big role in that growth.

Perfect. My quick follow-up here and this is more of investors asking us. You're obviously talking to a number of data centers. You already got lot of success at Cloudburst. Did the DeepSeek announcement in any shape or form break that momentum or it just was something which did not even impact the level of discussions you were having and those discussions continue?

Yes, this is Mack again. So the way we'd answer that is, of course, initially it did, first day or so we saw the video get pretty hard, but no. I think the answer to that in collective conversation with all the developers we're talking to and some of the tenants, we don't see that as a threat. It's certainly competition and it kind of wakes up a lot of what's going on here in The U. S.

But, gosh, you're comparing a communist kind of type run country that whatever kind of data center AI they may come with, we know is not going to be factual. We know they're going to have reality and facts that either they don't answer or that are biased or whatever. So it is America, I think we'll do a better job of this and talking with Cloudburst and some of the others that we're talking about, they don't see this. In fact, some of them have described this as a positive for different reasons, some of it being waking us up, waking The U. S.

Up to stay on top of this and being the leader in AI development.

Thank you so much. The next question will come from Spiro Dinesse with Citi. Please go ahead.

Thanks, operator. Afternoon, guys. Wanted to start with capital return. It seemed seemed like for a while you were getting a little bit closer to potentially doing more on the buyback side, but obviously the equity has been strong and of course with CapEx now it seems like it's crowding some of that out. At the same time Tom though you pointed to 5% EBITDA growth year over year at the midpoint.

So curious does all that kind of collectively point you towards maybe accelerating distribution growth more towards that 5% versus 3%? And if not, what you think you're waiting to see to accelerate there?

Yes. Well, like I always like to say, that's a good question and a good dialogue to have around here is when you start talking about how larger growth is going to be. But we're still kind of staying with that 3% to 5%. And I think with all these projects we're talking about, don't mind saying, we'd love to see that moving up to the higher end of that range. I think that's fair to say.

But let's go back to the capital allocation a little bit. We always had the balance sheet, in other words, the debt pay down. And then second, we looked at the distribution growth and then we looked at the growth capital with those buybacks in there. We still have all four of those on the radar screen. But with this, all these great projects that we've been talking about today, you can see that right now it makes a lot of sense to for the long term to continue to strengthen the footprint that we have and the asset base we have.

So we are very, very excited with what we have in front of us. And absolutely, the distribution growth is definitely very key here.

Great. Great. And then second question, still on the theme, just maybe focusing more on the CapEx here. M and A, something you've been active in the last few years. Just curious where that stands in light of the $5,000,000,000 in CapEx.

I guess if we look back and put CapEx and M and A together, that 5% doesn't look so high anymore. And so just curious if there's room to layer in more M and A here or $5,000,000,000 is kind of as comfortable as you're at right now?

Let's start with the first part of it, the M and A. M and A is clearly a very key part of our growth strategy here. It absolutely has helped us get to where we are right now on a lot of these growth projects that we're doing and a lot of the stuff that we're looking at. So the strategy has worked well for us and we're going to continue to focus on it. As far as the number of targets, you can see that it's getting fewer and fewer of us, but we still think the consolidation makes sense in the midstream space and we're going to be a player in it.

And let's kind of go back to the second part, I think, on the $5,000,000,000 I guess, I would best answer that, that look at that as a $2,025,000,000,000 dollars 5 billion dollars it's can't sit here and say right now that we've got in the queue to continue to look out at if that number is $5,000,000,000 but if it is with these kind of returns, we will surely keep looking at that. But in fairness, it's not one that we're right now putting any guidance out on. So we're going to continue the strategy here of both the M and A and the organic growth projects. And we think we're go ahead and get a good complement in for the team we have across the board. Integration is abilities are second to none.

We do a great job of getting these integrated quickly and start looking at all the opportunities that we find once we integrate them. So the M and A once again still plays a big role in our growth as we look out.

The next question will come from Jean Ann Salisbury with Bank of America. Please go ahead.

Hi. There are more competitors really making investments to grow in the Permian NGL kind of pipeline frac and export space. There's a ton of NGL pipeline capacity coming on this year. There was more LPG export capacity recently announced by a new entrant. Is this space getting too crowded?

And are you worried about returns falling in the segment over the next few years? And I guess as a follow-up, does there need to be more consolidation among the NGL integrated in your view to stop that from happening?

can start the second part and I'll start you. This is Mackie again. Yes, we're always going to see competition, of course, and we certainly don't dwell on or worry about what our competitors do or what their rates of return or what risk they might be taking. We focus on our customers, our producers, our markets and then build assets to fit the services they're asking for. So we feel very good about everything we've announced.

We feel very good about slowly ramping up and filling up every asset that we have, whether it's cryos or our NGL pipelines. We certainly look at that very closely so that we stay ahead of it. If we see a year or two down the road, we're going to run into capacity problems. We certainly address that and you'll see that from time to time. But new projects, yes, there's a new LPG project, I guess it's at Texas City that's going to be built in four or five years.

Not really concerning because one of the advantages that we have and we've had it kind of since we started this company years ago is that once we build assets and we're able to provide some interim service for somebody that wants that particular product, for example, we can build on that. So for example, as some of these new LPG facilities are being built over the next four or five years, we'll be negotiating and having pretty long extensions added to the existing business we add and new business that we develop over the next three or four years. So may not be a lot of market available for some of these projects that are coming online in 2028, '20 '20 '9 because a lot of that's under contract. But once again, we don't worry about what they're doing. We worry about our business, our returns, taking care of our customers and growing this partnership as we have consistently for the last many years.

in quickly on the second part of your question as far as the consolidation. I think you're asking around the natural gas liquids. When we're looking at various opportunities and what fits the beauty of once energy transfer once again is we're we participate across all the commodities natural gas, natural gas liquids and crude oil. And don't mind telling you that when we look at this stuff, we do as far as M and A goes, we do look across all the commodities when we do it because of the fact that we can consolidate these things and find a lot of opportunities. So yes, is the short answer to your question on the consolidation in the NGL space.

Great. Thanks a lot for that color. I'll leave it there.

The next question will come from Michael Blum with Wells Fargo. Please go ahead.

Thank you. Good afternoon, everyone. Wanted to go back to the data center strategy conversation. First question is really how much when you look at the opportunity set, how much do you expect to be front of the meter versus behind the meter?

Great question. And we're depending on the customer walking through that now. For example, we've got actually one customer that intends to tie to ERCOT, pretty large customer in the DFW area, but they will have 100% backup generation in the event they lose ERCOT power. In that situation, as all the data centers, we have such an advantage because of our big inch pipe, multiple big inch pipes in North Texas and our access to a significant amount of storage. So that's one example.

This one we're talking about now is behind the meter. But I would say probably weighing it, it's going to be more of behind the meter where the natural gas power generation will be the primary source of electricity with a lot of redundant other sources of backup power. But that will be, I would say, the majority of them will be that type of project.

Great. That's helpful. And then I guess for behind the meter, is this Cloudburst deal representative of the size of deals that you're seeing on average? And would you consider also building the power, the electric generation component

a project if that opportunity presents itself?

I'll start with the second half. How we answer those questions is, there's nothing that someone would ask us that we won't look at. So is that our line of business? Do we want to go build power plants? Not really what we do other than the ones that we've announced publicly because they make sense from a reliability for our assets in critical areas and shortage of electricity.

So yes, if someone came to ask us and it was a project that we've got our arms around, it made sense, had a great rate of return, met the hurdles we provide to natural gas, maybe even help out with our electricity team on marketing any excess power, sure, we'll look at that. As far as typical, hard to say, I would say this is pretty representative. It might become a high end if they really do approach two gigawatts. We certainly are chasing a number of them significantly less than that. I think probably a pretty good range is kind of the 600 megawatts to 1.2 gigawatts is probably a pretty good range.

There are some outliers smaller than that and even larger than two gigawatts, but that's probably a fair representation of kind of in the fairway with a lot of them.

Energy Transfer (ET) Q4 2024 Earnings Call Transcript

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