Energy Transfer LP is a large North American midstream energy partnership operating pipelines, storage and related infrastructure, with very large top-line scale and a financial profile marked by recent strong operating cash generation.
Energy Transfer LP reports revenue of $85.54B for the period ending December 31, 2025. The company's operating cash flow TTM stands at $10.15B, reflecting a robust cash generation profile.
Revenue per share increased from $35.74B as of December 31, 2020, to $78.47B at the end of 2025, indicating clear scale expansion. Consolidated revenue reached $85.54B in 2025.
Net profit margin was 5.0% as of December 2023 (gross margin 6.7%, operating margin 5.5%), which is thin given the scale of revenue and exposes results to commodity and volume swings.
EPS growth has varied significantly—from -118.0% to +944.1% historically—while the most recent 1-year diluted EPS growth stands at 22.3% as of 2024-12-31, complicating near-term earnings visibility.
The reported Price‑to‑Earnings series is recorded as 0.0x across recent quarters (most recent 2024-12-31), suggesting market multiple data should be treated cautiously for valuation context.
For detailed analysis, see the Revenue & Net Income, EPS Diluted & Revenue per Share, Profit Margin Trends, Return on Equity, and Strategic Capital Allocation sections.
The foundation of business quality and long-term value creation
Energy Transfer LP's reported revenue shows a marked increase in the most recent period, with the highest reported figure in the dataset at $85.54B for the period ending 2025-12-31. Revenue values in the years immediately prior include $57.85B (2023-12-31) and $50.75B (2021-12-31), indicating higher top-line levels in the most recent years compared with earlier single-quarter and annual figures in the $10–55B range.
Net income moved from negative results in early 2020 (e.g., -$855.0M on 2020-03-31 and -$782.0M on 2020-09-30) to sustained positive, multi-hundred-million and multi-billion results thereafter, peaking in the sample at $5.87B (2022-12-31) and $4.81B (2024-12-31). The latest reported net income for the quarter ending 2026-03-31 is $1.98B, which is positive but below the 2022 and 2024 peaks. The most recent revenue was $85.54B (2025-12-31). The most recent net income was $1.98B (2026-03-31).
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Jan 2025 to Dec 2025, Energy Transfer Lp generates $85.54B in revenue. The waterfall below shows how revenue flows through various expense categories.
Period Information
Report Type: Annual (10-K)
Period: Jan 2025 to Dec 2025
Revenue composition by disclosure category for the latest period
The provided excerpt does not include specific descriptions of ET’s product lines, services, or revenue characteristics. As a result, a detailed breakdown of revenue sources cannot be completed without the full Item 1 (Business) section of the 10-K report.
The excerpt lacks explicit information on customer segments or end markets, preventing an analysis of customer profiles.
There are no details regarding geographic scope or regional markets in the provided content.
Information about distribution channels is not included in the excerpt.
Lacking specific data, it is not possible to determine the proportion of recurring versus transactional revenue.
The excerpt does not provide information on key dependencies—such as suppliers, strategic partners, or raw materials—that impact revenue.
Analyzing long-term margin stability and competitive positioning
Energy Transfer LP's net profit margin rose gradually from very low single digits in the mid-2010s (1.1% in 2014, 2.7% in 2016) to 6.6% in 2019, then weakened sharply through 2020 (3.5% in early 2020 and -1.7% for 2020 full year). It recovered to 8.1% in 2021 before declining again to 5.0% by the end of 2023, marking key inflection points at the 2019 peak, the 2020 trough, and the 2021 rebound.
The most recent year-end margins show modest positive profitability at multiple levels: a gross margin of 6.7%, an operating margin of 5.5%, and a net profit margin of 5.0% as of 2023-12-31. The most recent gross margin was 6.7%, the most recent operating margin was 5.5%, and the most recent net profit margin was 5.0%.
Understanding Profit Margins
Between Jan 2025 and Dec 2025, Energy Transfer Lp converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Energy Transfer LP’s trailing twelve-month net income shows a recovery after the 2020 trough: net income was -$648.0M at the 2020 year end, rose to $5.87B in 2022, dipped to $3.94B by 2023, and increased to $4.81B as of the 2024‑12‑31 TTM.
Operating cash flow TTM exhibits a separate pattern, moving from negative levels around 2019–2020 (‑$159.0M and ‑$117.0M) to materially positive amounts in later years, with a recorded $10.15B at the 2025‑12‑31 TTM.
The most notable inflection points are the switch from negative operating cash flow in 2019–2020 to strong positive cash generation by 2025, and the net income peak in 2022 followed by a decline in 2023 and partial rebound in 2024.
In the latest reported TTM data, operating cash flow exceeds net income. The most recent Net Income (TTM) was $4.81B (period end 2024‑12‑31). The most recent Operating Cash Flow (TTM) was $10.15B (period end 2025‑12‑31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
Energy Transfer LP's ROE has shown variability over the past decade with a more pronounced movement in the last three years. After a peak around 15.7% in late 2021 and 14.4% in 2022, ROE fell to 9.0% in 2023 before recovering modestly to 10.5% in the most recent period. The most recent quarters therefore show a partial rebound from the 2023 trough rather than a return to the mid-teens levels seen in 2021–2022.
Looking further back, ROE climbed from single digits and very low levels (1.2% in 2013) through the late 2010s, with notable inflection points including a drop to 5.7% in early 2020 and a sharp rise to 15.7% by 2021. The most recent Return on Equity for Energy Transfer LP (period ending 2024-12-31) was 10.5%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
Energy Transfer LP's operating cash flow shows a marked improvement in the most recent data: the TTM operating cash flow shifted from a negative $117.0M at 2020-12-31 to a positive $10.15B by 2025-12-31, representing a pronounced upward inflection with the latest level at $10.15B.
Investing cash flow has been consistently negative but the outflow has narrowed over the period covered, from $-6.93B (2019-12-31) to $-4.90B (2020-12-31), $-4.02B (2022-12-31) and most recently $-3.55B (2023-03-31). Financing cash flow shows larger net outflows in 2022–2023 (peaking at $-7.26B on 2023-03-31) that have declined to $-3.64B on 2024-03-31 and to $-816.0M on 2025-12-31.
The latest trailing-twelve-month values are:
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
Energy Transfer LP's reported Price-to-Earnings ratio shows no variation across the available quarterly history: the dataset records a PE of 0.0x for every quarter with a numeric value from 2012 through 2024. In the most recent quarters (2022, 2023 and 2024) the PE remains recorded as 0.0x, indicating a flat time series with no upward or downward re-rating visible in the provided data.
There is a single missing entry at period_end 2020-12-31 where no PE value is recorded; otherwise every reported quarter lists 0.0x. The most recent Price-to-Earnings ratio (2024-12-31) was 0.0x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.