Full Year 2025 Energy Transfer LP Earnings Call

February 17, 2026

Speaker #1: Code. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions.

Speaker #1: To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then recorded. I would now like to turn the conference over to Tom Long, co-chief executive officer.

Speaker #1: Please go ahead.

Speaker #2: Thank you, operator, and good morning, everyone, and welcome to the Energy Transfer Fourth Quarter 2025 earnings call. I'm also joined today by Mackey McCree, another member of the senior management team who are here to help answer your questions after our prepared remarks.

Speaker #2: 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.

Speaker #2: And we encourage everyone to 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.

Speaker #2: As a reminder, we will be making forward-looking statements within the meeting. Of Section 21E of the Security Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us.

Speaker #2: And are discussed in more detail in our Form 10-K for the year ended December 31st, 2025, which we expect to file later this week.

Speaker #2: I'll also refer to adjusted EBITDA and distributable 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.

Speaker #2: Let's start today with financial results for full year 2025 adjusted EBITDA was nearly 16 billion dollars compared to 15.5 billion dollars for 2024. This was up 3% over last year and was a partnership record.

Speaker #2: DCF, attributable to the partners of Energy Transfer as adjusted, was 8.2 billion dollars compared to 8.4 billion dollars for last year. Operationally, we moved record volumes across each of our interstate, midstream, NGL, and crude segments for the year ended 2025.

Speaker #2: We also exported a record amount of total NGLs out of our Nederland and Marcus Hook terminals. For the fourth quarter of 2025, we generated adjusted EBITDA of approximately 4.2 billion dollars compared to approximately 3.9 billion dollars for the fourth quarter of last year.

Speaker #2: DCF, attributable to the partners of Energy Transfer as adjusted, was approximately 2 billion dollars, consistent with the fourth quarter of 2024. During the quarter, we recorded records in each of our NGL fractionation throughput, LPG exports, Nederland terminal volumes, and crude transportation throughput.

Speaker #2: And for full year 2025, we spent approximately 4.5 billion dollars on organic growth capital, primarily in the NGL and refined products, midstream, and intrastate segments, excluding sun and USA compression capex.

Speaker #2: Turning to our results by segment for the fourth quarter, and we'll start with the NGL and refined products. Adjusted EBITDA was 1.1 billion dollars, consistent with the fourth quarter of 2024.

Speaker #2: We saw higher throughput across our Gulf Coast and Mariner East pipeline operations, Mont Bellevue fractionators, and Nederland terminal. Results for the quarter including a one-time 56 million dollar increase from a regulatory order impacting prior and current period rates.

Speaker #2: These were all set by 58 million dollars of lower gains related to the timing of the settlement of NGL and refined products inventory hedges, which we anticipate will be recognized during the first quarter of 2026.

Speaker #2: In addition, loading delays related to fog at Nederland resulted in a 14 million dollar impact, which we are on track to make up in the first quarter of 2026.

Speaker #2: For midstream, adjusted EBITDA was 720 million dollars compared to 705 million dollars for the fourth quarter of 2024. This was primarily due to volume growth in the Permian, Northeast, and Arklatex regions.

Speaker #2: Results were partially offset by a one-time expense increase of 14 million dollars in intersegment NGL transportation fees as a result of the previously mentioned regulatory order.

Speaker #2: For the crude oil segment, adjusted EBITDA was 722 million dollars compared to 760 million dollars for the fourth quarter of 2024. During the quarter, we saw growth across several of our crude pipeline systems and our Permian Basin gathering system.

Speaker #2: Results also included a one-time 19 million dollar increase related to the previously mentioned regulatory order. These were offset by lower transportation revenues primarily on Bakken pipeline.

Speaker #2: In our interstate natural gas segment, adjusted EBITDA was 523 million dollars compared to 493 million dollars for the fourth quarter of last year. This increase was primarily due to more capacity sold and higher utilization on several of our pipelines, including Panhandle Eastern, Trunk Line, Florida Gas, and Transwestern.

Speaker #2: And for our intrastate natural gas segment, adjusted EBITDA was 355 million dollars compared to 263 million dollars in the fourth quarter of last year.

Speaker #2: This increase was primarily due to increased pipeline and storage optimization as well as increased volumes across our Texas interstate pipeline system due to third-party volume growth.

Speaker #2: Now turning to our organic capital guidance, as we previously announced, our 2026 organic growth capital guidance range is projected to be between 5 and 5 and a half billion dollars excluding sun and USA compression.

Speaker #2: We expect approximately two-thirds of this capital to be invested in projects that will enhance our natural gas assets including the Hugh Brinson and Desert Southwest pipeline projects.

Speaker #2: Mustang Draw One and Two as well as continued system build-out in the Permian Basin. In addition, approximately a quarter of the growth capital will be in the NGL and refined product segment related to the ongoing construction of the Nederland and Marcus Hook terminal expansions as well as Track Nine and Mont Bellevue.

Tom Long: primarily due to more capacity sold and higher utilization of several of our pipelines, including Panhandle Eastern, Trunkline, Florida Gas, and Transwestern. For our intrastate natural gas segment, Adjusted EBITDA was $355 million, compared to $263 million in Q4 of last year. This increase was primarily due to increased pipeline and storage optimization, as well as increased volumes across our Texas intrastate pipeline system due to third-party volume growth. Now turning to our organic capital guidance. As we previously announced, our 2026 organic growth capital guidance range is projected to be between $5 and 5.5 billion, excluding Sun and USA Compression.

Panhandle Eastern truck line, Florida gas and transwestern.

Speaker #2: These expansions are contracted under long-term commitments and are expected to generate mid-team returns and considerable earnings growth over the next decade or more. Beyond these projects, we have a significant backlog of opportunities that are expected to support continued growth.

And for our intrastate natural gas segment, adjusted EBITDA was $355 million compared to $263 million in the fourth quarter of last year. This increase was primarily due to increased pipeline and storage optimization as well as increased volumes across our Texas intrastate.

Speaker #2: For a closer look at some of our major growth projects, I'll start with the natural gas side of our business where we continue to see significant demand for our services.

Pipeline system due to third party volume growth.

Now turning to our organic capital guidance as we previously announced our 2026 organic growth capital guidance range is projected to be between five and $5 $5 billion, excluding sun and USA compression.

Speaker #2: In December, we announced that we have upsized the mainline pipeline diameter for Desert Southwest pipeline project. From 42 inches to 48 inches to meet the planned and anticipated customer demand.

Tom Long: We expect approximately two-thirds of this capital to be invested in projects that will enhance our natural gas assets, including the Hugh Brinson Pipeline and Desert Southwest Pipeline projects, Mustang Draw 1 and 2, as well as continued system build-out in the Permian Basin. In addition, approximately a quarter of the growth capital will be in the NGL and refined products segment, related to the ongoing construction of the Nederland and Marcus Hook Terminal expansions, as well as Frac Nine and Mont Belvieu. These expansions are contracted under long-term commitments and are expected to generate mid-teen returns and considerable earnings growth over the next decade or more. Beyond these projects, we have a significant backlog of opportunities that are expected to support continued growth.

Speaker #2: This will increase the project's capacity to up to 2.3 BCF per day. A full build-out of the project is expected to cost approximately 5.6 billion dollars and we continue to expect the project to be in service by the fourth quarter of 2029.

We expect approximately two thirds of this capital to be invested in projects that will enhance our natural gas assets, including the <unk> and desert southwest pipeline projects Mustang draw one into as well as continued system build out in the Permian basin.

Speaker #2: Our teams continue to actively engage with elected officials, county leadership, and associated communities along the route to communicate project information and updates. And we have engaged with over 275 stakeholders today.

In addition, approximately a quarter of the growth capital will be in the NGL and refined products segment related to the ongoing construction of the Nederland and Marcus Hook terminal expansions as well as Frac nine at Mont Belvieu.

These expansions are contracted under long term commitments and are expected to generate mid teen returns.

Speaker #2: Our discussions have been very positive and existing and potential stakeholders are pleased about the economic benefits expected and also realize the critical need for a substantial reliable supply of gas to help address the significant demand growth in Arizona and New Mexico markets.

Considerable earnings growth over the next decade or more.

Beyond these projects, we have a significant backlog of opportunities that are expected to support continued growth.

Tom Long: For a closer look at some of our major growth projects, I'll start with the natural gas side of our business, where we continue to see significant demand for our services. In December, we announced that we have upsized the mainline pipeline diameter for Desert Southwest Pipeline project from 42 inches to 48 inches to meet the planned and anticipated customer demand. This will increase the project's capacity to up to 2.3 BCF per day. A full build-out of the project is expected to cost approximately $5.6 billion, and we continue to expect the project to be in service by Q4 2029. Our teams continue to actively engage with elected officials, county leadership, and associated communities along the route to communicate project information and updates, and we have engaged with over 275 stakeholders to date.

For a closer look at some of our major growth projects I'll start with the natural gas side of our business, where we continue to see significant demand for our services in December we announced that we have upsized the mainline pipeline diameter for desert southwest pipeline project from 42 inches to 48 inches to meet.

Speaker #2: Next, construction of our Hugh Brinson pipeline is going well. As of today, 100% of the 42-inch pipe has been delivered to our pipe yards and mainline construction of the pipeline is approximately 75% complete.

Speaker #2: We expect phase one to be in service in the fourth quarter of this year. However, if we stay on our current schedule, we should have the ability to flow some early volumes prior to phase one in service.

The planned and anticipated customer demand.

This will increase the projects capacity to up to two three Bcf per day.

A full build out of the project is expected to cost approximately $5 6 billion.

Speaker #2: And we continue to expect phase two to be in service in the first quarter of 2027. As a reminder, this system will be bidirectional with the ability to transport approximately 2.2 BCF per day from west to east and approximately 1 BCF per day from east to west.

And we continue to expect the project to be in service by the fourth quarter 2029.

Our teams continue to actively engage with elected officials county leadership and associated communities along the route to communicate project information and updates.

Speaker #2: The pipe is fully contracted from west to east and we also have a growing amount of volume committed on backhaul that is expected to add significant upside with no additional capital.

And we have engaged with over 275 stakeholders today.

Tom Long: Our discussions have been very positive, and existing and potential stakeholders are pleased about the economic benefits expected, and also realize the critical need for a substantial, reliable supply of gas to help address the significant demand growth in Arizona and New Mexico market. Next, construction of our Hugh Brinson Pipeline is going well. As of today, 100% of the 42-inch pipe has been delivered to our pipe yards, and mainline construction of the pipeline is approximately 75% complete. We expect phase one to be in service in Q4 of this year. However, if we stay on our current schedule, we should have the ability to flow some early volumes prior to phase one in service. We continue to expect phase two to be in service in Q1 2027.

Our discussions have been very positive and existing and potential stakeholders are pleased about the economic benefits expected and also realize the critical need for a substantial reliable supply of gas to help address the significant demand growth in Arizona and the Mexico market.

Speaker #2: On Florida Gas Transmission or FGT, we recently completed open seasons for two new projects that are supported by long-term binding agreements from anchor shippers.

Speaker #2: The phase nine project, which is designed to expand firm natural gas transportation capacity to multiple new and existing meter stations, located across FGT's market area.

Next construction of our <unk> pipeline is going well as of today, 100% of the 42 inch pipe has been delivered to our pipe yards and mainline construction of the pipeline is approximately 75% complete we expect phase one to be in service in the fourth quarter of this year.

Speaker #2: This project will consist of the construction of up to 82 miles of pipeline looping as well as new and upgraded compression. This would expand FGT's capacity by up to 550 million cubic feet per day.

However, if we stay on our current schedule, we should have the ability to flow. Some early volumes prior to phase one in service.

Speaker #2: The project is expected 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.

And we continue to expect phase two to be in service in the first quarter of 2027 as a reminder, this system will be bi directional with the ability to transport approximately two two bcf per day from west to east at approximately one Bcf per day from east to West the pipe is fully contracted.

Tom Long: As a reminder, this system will be bidirectional, with the ability to transport approximately 2.2 Bcf per day from west to east, and approximately 1 Bcf per day from east to west. The pipe is fully contracted from west to east, and we also have a growing amount of volume committed on backhaul that is expected to add significant upside with no additional capital. On Florida Gas Transmission, or FGT, we recently completed open seasons for two new projects that are supported by long-term binding agreements from anchor shippers. The Phase Nine project, which is designed to expand firm natural gas transportation capacity to multiple new and existing meter stations located across FGT's market area, will consist of the construction of up to 82 miles of pipeline looping, as well as new and upgraded compression.

Speaker #2: It will consist of the construction of a new 37-mile lateral to supply the South Florida area, along with compression and a new meter station.

Speaker #2: The project is expected to be available for service in the first quarter of 2030. Energy Transfer share of the cost of these two projects is expected to be up to 535 million dollars and 110 million dollars respectively depending on the final shipper volume elections.

From West to East and we also have a growing amount of volume committed on backhaul is expected to add significant upside with no additional capital.

Florida gas transmission or <unk>, we recently completed open seasons for two new projects that are supported by long term binding agreements from anchor shippers.

Speaker #2: And construction of a new storage cavern at our Bethel's natural gas storage facility, which is expected to double our working gas storage capacity at the facility to over 12 BCF, remains on schedule to be in service in late 2028.

The phase nine project, which is designed to expand firm natural gas transportation capacity to multiple new and existing meter stations located across fgt's market area.

Speaker #2: Now for a brief update around recent natural gas opportunities for new power plant and data center development. On our last call, we announced we have long-term agreements with Oracle to deliver approximately 900,000 MCF per day of natural gas to three US data centers.

This project will consist of the construction of up to 82 miles of pipeline looping as well as new and upgraded compression.

Tom Long: This would expand FGT's capacity by up to 550 million cubic feet per day. The project is expected to be available for service in Q4 2028. The South Florida project is designed to enhance the reliability of critical infrastructure and increase overall deliveries in South Florida. It will consist of the construction of a new 37-mile lateral to supply the South Florida area, along with compression and a new meter station. The project is expected to be available for service in Q1 2030. Energy Transfer's share of the cost of these two projects is expected to be up to $535 million and $110 million, respectively, depending on the final shipper volume elections.

Is this would expand fgt's capacity by up to 550 million cubic feet per day. The project is expected to be available for service in the fourth quarter of 2028.

Speaker #2: We recently began flowing gas on the first pipeline lateral to a data center campus near Abilene, Texas. Two more laterals are expected to be completed in mid-2026.

The South Florida project is designed to enhance the reliability of critical infrastructure and increase overall deliveries in South Florida.

Speaker #2: Supply for all three of these pipelines will be sourced from our Hugh Brinson and North Texas pipelines. As a reminder, Energy Transfer has entered into a 20-year binding agreement with Intergy Louisiana to provide at least 250,000 MMBTUs per day of firm transportation service to fuel their facilities in Richland Parish, Louisiana.

It will consist of the construction of a new 37 mile lateral to supply the South Florida area.

Long with compression and a new meter station the.

The project is expected to be available for service in the first quarter of 2030.

Energy transfer share of the cost of these two projects is expected to be up to $535 million and $110 million respectively, depending on the final shipper volume elections.

Speaker #2: Within the last year, we have contracted over 6 BCF per day of pipeline capacity with demand pull customers. This includes volumes from end users, data centers, and utilities off of Desert Southwest, Hugh Brinson pipelines, and other of our natural gas pipeline systems.

Tom Long: Construction of a new storage cavern at our Bethel's Natural Gas Storage facility, which is expected to double our working gas storage capacity at the facility to over 12 BCF, remains on schedule to be in service in late 2028. Now for a brief update around recent natural gas opportunities for new power plant and data center development. On our last call, we announced we have long-term agreements with Oracle to deliver approximately 900,000 Mcf/d of natural gas to three US data centers. We recently began flowing gas on the first pipeline lateral to a data center campus near Abilene, Texas. Two more laterals are expected to be completed in mid-2026. Supply for all three of these pipelines will be sourced from our Hugh Brinson and North Texas pipelines.

And construction of a new storage cavern at our vessels natural gas storage facility, which is expected to double our working gas storage capacity at the facility to over 12 Bcf remains on schedule to be in service in late 2028 now.

Speaker #2: And we remain in advanced discussions with several other facilities, in close proximity to our footprint. Our Oklahoma and tri-state power team recently added connections to serve three new power plant loads in the state of Oklahoma, totaling approximately 190 million cubic feet per day.

Now for a brief update around recent natural gas opportunities for new power plant in data Center development on our last call. We announced we have long term agreements with Oracle to deliver approximately 900000 Mcf per day of natural gas to three U S data centers. We recently began flowing gas on the first pipe.

Speaker #2: These are expected to come online in the second quarter of 2026. These connections are supported by long-term contracts with investment-grade counterparties. In addition, we have also entered into advanced negotiations to serve another 350 million cubic feet per day of new power plant demand in Oklahoma.

Klein lateral two Identa center campus near Abilene, Texas, two more laterals are expected to be completed in mid 2026 supply for all three of these pipelines will be sourced from our <unk> and North Texas pipelines as.

Speaker #2: Outside of Oklahoma and Texas, our team continues to work on multiple transactions with power plants to provide significant transportation revenue across 13 other states, which have a high likelihood of reaching FID.

Tom Long: As a reminder, Energy Transfer has entered into a 20-year binding agreement with Entergy Louisiana to provide at least 250,000 MMBtu/d of firm transportation service to fuel their facilities in Richland Parish, Louisiana. Within the last year, we have contracted over 6 Bcf/d of pipeline capacity with demand pull customers. This includes volumes from end users, data centers, and utilities off of Desert Southwest Pipeline, Hugh Brinson Pipelines, and other of our natural gas pipeline systems. We remain in advanced discussions with several other facilities in close proximity to our footprint. Our Oklahoma Intrastate Power team recently added connections to serve three new power plant loads in the state of Oklahoma, totaling approximately 190 million cubic feet per day. These are expected to come online in Q2 2026.

As a reminder, energy transfer has entered into a 20 year binding agreement with Entergy.

Louisiana to provide at least 250000 <unk> per day of firm transportation service to fuel their facilities in Richland parish, Louisiana.

Speaker #2: Lastly, construction of eight 10-megawatt natural gas fired electric generation facility continues. And we expect our third facility which will be located at our Greywolf Processing Plant to be in service in the first quarter of 2026.

Within the last year, we have contracted over six Bcf per day of pipeline capacity with demand pull customers. This includes volumes from end users data centers and utilities up a desert southwest shoe brands in pipelines and other of our natural gas pipeline systems and we remain.

Speaker #2: The remaining five facilities are expected to be fully constructed and ready for service later this year. Now looking at the Permian Processing Expansions, we continue to expect our Mustang Draw 1 and 2 plants to be in service in the second quarter and fourth quarter of this year, respectively.

In advanced discussions with several other facilities in close proximity to our footprint.

Our Oklahoma Intrastate power team recently added connections to serve three new power plant loads in the state of Oklahoma totaling approximately 190 million cubic feet per day. These are expected to come online in the second quarter of 2026.

Speaker #2: At our Needland Terminal, volumes on our Flexport NGL export expansion project have continued to ramp up, and we exported our first two ethylene cargoes in December of 2025.

Tom Long: These connections are supported by long-term contracts with investment-grade counterparties. In addition, we have also entered into advanced negotiations to serve another 350 million cubic feet per day of new power plant demand in Oklahoma. Outside of Oklahoma and Texas, our team continues to work on multiple transactions with power plants to provide significant transportation revenues across 13 other states, which have a high likelihood of reaching FID. Lastly, construction of eight 10-megawatt natural gas-fired electric generation facility continues. We expect our third facility, which will be located at our Gray Wolf processing plant, to be in service in the first quarter of 2026. The remaining five facilities are expected to be fully constructed and ready for service later this year.

These connections are supported by long term contracts with investment grade Counterparties. In addition, we have also entered into advanced negotiations to serve another 350 million cubic feet per day of new power plant demand and Oklahoma Alpha.

Speaker #2: This contributed to record exports out of Needland for the fourth quarter of 2025. 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.

Side of Oklahoma, and Texas, our team continues to work on multiple transactions with power plants to provide significant transportation revenue.

Speaker #2: And we expect to take FID on this project by mid-2026. Turning to Lake Charles LNG, in December, we announced that we suspended the development of this project.

Across 13, other states, which have a high likelihood of reaching FID.

Lastly, construction of a 10 megawatt natural gas fired electric generation facility continues and we expect our third facility, which will be located at our graywolf processing plant to be in service in the first quarter of 2026. The remaining five facilities are expected to be full.

Speaker #2: As we have previously stated, we continue to be extremely focused on capital discipline, and we have directed our efforts toward our significant backlog of projects that we believe provide a more attractive risk-return profile.

Speaker #2: However, we remain open to discussions with third parties who may have an interest in developing the project as we would expect to benefit from providing natural gas transportation capacity for the project.

<unk> constructed and ready for service later this year.

Tom Long: Now, looking at the Permian processing expansions, we continue to expect our Mustang Draw 1 and 2 plants to be in service in Q2 and Q4 of this year, respectively. At our Nederland Terminal, volumes on our Flex Port NGL export expansion project have continued to ramp up, and we exported our first two ethylene cargoes in December 2025. This contributed to record exports out of Nederland for Q4 2025. 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. We expect to take FID on this project by mid-2026. Turning to Lake Charles LNG, in December, we announced that we suspended the development of this project.

Now looking at our Permian processing expansions, we continue to expect our Mustang draw one and two plants to be in service in the second quarter and fourth quarter of this year respectively.

Speaker #2: We're also exploring other projects to better utilize the terminal in a more profitable way. Turning to our guidance, we now expect our 2026 adjusted EBITDA to range between 17.45 billion dollars and 17.85 billion dollars compared to the previous range of between 17.3 billion dollars and 17.7 billion dollars.

At our Nederland terminal volumes on our flex Ford NGL export expansion projects have continued to ramp up and we exported our first two ethylene cargoes in December of 2025. This contributed to record exports out of Nederland for the fourth quarter of 2025, we continue to work with <unk>.

Speaker #2: This change in guidance is solely attributable to the USA Compression's acquisition of JW Power Company which closed on January the 12th of 2026. Looking ahead, we are poised for continued growth in 2026 driven largely by the ramp of our Flexport NGL export project, new Permian Processing Plants, and other projects.

<unk> on a project to provide capacity for approximately 250000 barrels per day of light Canadian crude oil through our Dakota access pipeline, we expect to take FID on this project by mid 2026.

Turning to Lake Charles LNG in December we announced that we suspended.

Speaker #2: We believe our Hugh Brinson pipeline, which is expected online later this year, is extremely well positioned to become a major US header system that ties together with our network of large diameter pipelines and allows us to flexibility to deliver natural gas from Texas to the Desert Southwest, Southern Florida, the Midwest, and anywhere in between.

The development of this project.

Tom Long: As we have previously stated, we continue to be extremely focused on capital discipline, and we have directed our efforts toward our significant backlog of projects that we believe provide a more attractive risk-return profile. However, we remain open to discussions with third parties who may have an interest in developing the project, as we would expect to benefit from providing natural gas transportation capacity for the project. We're also exploring other projects to better utilize the terminal in a more profitable way. Turning to our guidance, we now expect our 2026 Adjusted EBITDA to range between $17.45 billion and $17.85 billion, compared to the previous range of between $17.3 billion and $17.7 billion.

As we have previously stated we continue to be extremely focused on capital discipline and we have directed our efforts toward our significant backlog of projects that we believe provide a more attractive risk return profile.

However, we remain open to discussions with third parties, who may have an interest in developing the project as we would expect to benefit from providing natural gas transportation capacity for the project. We're also exploring other projects to better utilize the terminal and a more profitable way.

Speaker #2: In addition to our extensive pipeline systems, we have over 230 BCF of storage to support the market demands of our customers. This should provide significant upside in the future and further establish Energy Transfer's natural gas pipeline business as the premier option for customers seeking dependable natural gas supply.

Turning to our guidance, we now expect our 2026 adjusted EBITDA to range between $17 $45 billion and $17 85 billion compared to the previous range of between $17 3 billion and $17 7 billion.

Speaker #2: We are currently undertaking a large slate of growth projects, including projects that will help address the need for reliable natural gas solutions to support power plant and data center growth plans as well as the growing international demand for natural gas liquids.

Tom Long: This change in guidance is solely attributable to the USA Compression's acquisition of J-W Power Company, which closed on 12 January 2026. Looking ahead, we are poised for continued growth in 2026, driven largely by the ramp of our Flex Port NGL export project, new Permian processing plants, and other projects. We believe our Hugh Brinson Pipeline, which is expected online later this year, is extremely well-positioned to become a major US header system that ties together with our network of large-diameter pipelines and allows us the flexibility to deliver natural gas from Texas to the Desert Southwest, Southern Florida, the Midwest, and anywhere in between. In addition to our extensive pipeline systems, we have over 230 Bcf of storage to support the market demands of our customers.

This change in guidance is solely attributable to the USA compressions acquisition of J W. Power Company, which closed on January 12 2026.

Speaker #2: As a result, project execution remains one of our top priorities for 2026, and we will continue to place a significant amount of focus on completing projects safely on time and on budget.

Looking ahead, we are poised for continued growth in 2026, driven largely by the ramp of our Flex Board NGL export project, New Permian processing plants and other projects. We believe our <unk> pipeline, which is expected online later this year is extremely well positioned to become a major U S.

Speaker #2: We also continue to see new growth opportunities across all aspects of our business and are extremely well positioned to help meet the substantial growth in demand for energy resources over the next several years.

<unk> system that ties together with our network of large diameter pipelines and allows us the flexibility to deliver natural gas from Texas to the desert southwest Southern Florida, the Midwest and anywhere in between.

Speaker #2: Given our extensive backlog of potential growth projects, we continue to be extremely focused on capital discipline and will continue to target projects that are expected to generate the highest returns while balancing project risk.

In addition to our extensive pipeline systems, we have over 230 Bcf of storage to support the market demands of our customers.

Speaker #2: We continue to target a long-term annual distribution growth rate of 3 to 5 percent. We also expect to maintain our leverage target of 4 to 4 and a half times EBITDA during this period of meaningful investment opportunities.

Tom Long: This should provide significant upside in the future and further establish Energy Transfer's natural gas pipeline business as the premier option for customers seeking dependable natural gas supply. We are currently undertaking a large slate of growth projects, including projects that will help address the need for reliable natural gas solutions to support power plant and data center growth plans, as well as the growing international demand for natural gas liquids. As a result, project execution remains one of our top priorities for 2026, and we will continue to place a significant amount of focus on completing projects safely, on time, and on budget. We also continue to see new growth opportunities across all aspects of our business and are extremely well positioned to help meet the substantial growth and demand for energy resources over the next several years.

This should provide significant upside in the future and further establish energy transfer as natural gas pipeline business as the premier option for customers seeking dependable natural gas supply.

Speaker #2: In summary, our extensive asset base and diverse product offerings is allowing us to deploy capital across our footprint. With several major growth projects coming online over the next several years, we continue to have great visibility into our ability to grow our franchise for many years to come.

We are currently undertaking a large slate of growth projects, including projects that will help address the need for reliable natural gas solutions to support power plant and data center growth plans as well as the growing international demand for natural gas liquids as a result project execution remains one of our.

Speaker #2: This concludes our prepared remarks. Operator, please open the line up for our first question. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad.

Our top priorities for 2026, and we will continue to place a significant amount of focus on completing projects safely on time and on budget.

Speaker #2: 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 then 2.

We also continue to see new growth opportunities across all aspects of our business and are extremely well positioned to help meet the substantial growth in demand for energy resources over the next several years given our extensive backlog of potential growth projects. We continue to be extremely focused on capital discipline, and we will continue to target.

Tom Long: Given our extensive backlog of potential growth projects, we continue to be extremely focused on capital discipline and will continue to target projects that are expected to generate the highest returns while balancing project risk. We continue to target a long-term annual distribution growth rate of 3% to 5%.... We also expect to maintain our leverage target of 4 to 4.5 times EBITDA during this period of meaningful investment opportunities. In summary, our extensive asset base and diverse product offerings is allowing us to deploy capital across our footprint. With several major growth projects coming online over the next several years, we continue to have great visibility into our ability to grow our franchise for many years to come. This concludes our prepared remarks. Operator, please open the line up for our first question.

Speaker #2: At this time, we will pause momentarily to assemble our roster. The first question comes from Theresa Chen with Barclays. Please go ahead.

Projects that are expected to generate the highest returns while balancing project risk we continue to target a long term annual distribution growth rate of 3% to 5%.

Speaker #3: Good morning. It's encouraging to see the continued commercialization momentum across your natural gas asset base. Could you talk about the key drivers behind the progress today and maybe talk about some of your more creative solutions to address market needs?

We also expect to maintain our leverage target of four to four five times EBITDA. During this period of meaningful investment opportunities in.

Speaker #3: Maybe with Hugh Brinson as an example and the multiple legs of service and revenue opportunities on that system. And as you look ahead, where do you see the next set of commercialization or optimization opportunities?

In summary, our extensive asset base and diverse product offerings is allowing us to deploy capital across our footprint with several major growth projects coming online over the next several years, we continue to have great visibility into our ability to grow our franchise for many years to come. This concludes our prepared remarks.

Speaker #3: Whether through new customers or end markets or further integration across your footprint.

Speaker #4: Hello, this is Matthew. Thanks, Theresa. Listen to Tom go through that opening statement. It's hard to not get overly excited. So we couldn't be more excited about the future with our DSW project, a 500-mile, 48-inch pipeline, largest pipeline ever built in the US as far as that distance with a 48.

Operator, please open the lineup for our first question.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one 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 then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Teresa Chen with Barclays. Please go ahead.

We will now begin the question and answer session.

Ask any question you May Press Star then one on your telephone keypad.

Youre using a speakerphone please pick up your handset before pressing the keys.

Speaker #4: And then you look at our Florida Gas Pipeline System with another expansion actually in the open season. We had more interest than even the 550.

If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker #4: So we anticipate in the future we'll have another expansion off Florida. That's a pipeline that just keeps giving. And then as Tom just spoke about in his opening statements, we've got kind of crown jewel in the middle of our system with Hugh Brinson able to move a lot of volume from west to east.

At this time, we will pause momentarily to assemble our roster.

The first question comes from Theresa Chen with Barclays. Please go ahead.

Theresa Chen: Good morning. It's encouraging to see the continued commercialization momentum across your natural gas asset base. Could you talk about the key drivers behind the progress today, and maybe talk about some of your more creative solutions to address market needs? Maybe with Hugh Brinson as an example, in the multiple legs of service and revenue opportunities on that system. And as you look ahead, where do you see the next set of commercialization or optimization opportunities, whether through new customers or end markets, or further integration across your footprint?

Good morning, it's encouraging to see that continue the commercialization momentum across your natural gas asset base could you just talk about the key drivers behind the progress today and maybe talk about some of your more creative <unk>.

Speaker #4: But it also will give us the ability to move volume from east to west, as well as source gas from pretty much any basin in the world to the markets along our system as well as to the Gulf Coast into the southeast.

Elution contract market needs.

Speaker #4: So we are very excited about the assets that we have built as you talked about. Are you asking about all the other commercialization? We can go on and on about what Tom just spoke about.

Thank you Vincent as an example in the multiple bites at the service revenue opportunities on that system and as you look ahead, where do you see the next set of commercialization or optimization opportunities and what that could mean.

Speaker #4: We're building new cryos, next quarter and the fourth quarter out in the Permian Basin, most prolific basin. In the US, that flows into our NGL system.

New customers or end markets or further integration across your footprint.

Mackie McCrea: Hello, this is Mackey. Thanks, Teresa. You know, listening to Tom go through that opening statement, it's hard to not get overly excited. So, we couldn't be more excited about the future with our DSW project, a 500-mile, 48-inch pipeline, largest pipeline ever built in the US, as far as that distance with the 48. And then you look at our Florida gas pipeline system with another expansion. Actually, in the open season, we had more interest than even the 550, so we anticipate in the future we'll have another expansion off Florida. That's a pipeline that just keeps giving. And then, as Tom just spoke about in his opening statements, we've got kind of crown jewel in the middle of our system with Hugh Brinson, able to move a lot of volume from west to east.

Hello. This is Matthew Thanks, Teresa Yeah listen to Tom.

Speaker #4: We have an expansion coming on on our NGL transportation, a mid-year. That feeds into our frac that comes online in the fourth quarter. That feeds onto the Flexport expansion that we just completed in 2025.

Tom go through that opening statements hard to not get overly excited so.

We couldnt be more excited about the future.

With with our DSW project 500 mile 48 inch pipe on our largest pipeline ever built in yes.

Speaker #4: So just an incredible future for our NGL business in Texas and beyond. We're expanding our markets hook. Ethane capabilities up there to export. We're by far the largest transporter of NGLs in the northeast and see that as continue to upside for our partnership.

That distance with a 48 and then you look at our Florida gas pipeline system with another expansion actually in the open season, we had more interest than even the 550. So we anticipate in the future. We will have another expansion of all Florida. That's a pipeline just keeps given and then as Tom just spoke about in his opening statements. We've got kind of a crown jewel in the middle of our <unk>.

Speaker #4: And then you look at all the assets and all the demand around our pipelines. It's not just data centers. What we're chasing is power plants that generate electricity for data centers, for population growth, for manufacturing.

System with you, Brent and able to move a lot of volume from west to east, but it also will give us the ability to move volume from east to west as well as source gas from pretty much any basin in the world to the <unk>.

Mackie McCrea: But it also give us the ability to move volume from east to west, as well as source gas from pretty much any basin in the world to the markets along our system, as well as to the Gulf Coast, into the Southeast. So we're very excited about the assets that we have built. As you talked about, or you asked about all the other commercialization, you know, we can go on and on about what Tom just spoke about. We're building new cryos this next quarter and Q4 out in the Permian Basin, the most prolific basin in the US. That flows into our NGL system. We have an expansion coming on our NGL transportation mid-year. That feeds into our frack that comes online in Q4.

Speaker #4: Facilities. All the power plants that Tom just talked about that our team has done such a good job in Oklahoma. The best of my knowledge, I don't think any of that's data centers.

Markets, along our system as well as to the Gulf Coast.

And to the South East.

Speaker #4: It's all just for population growth and new manufacturing growth. So we are incredibly excited about our footprint and couldn't be more elated of where we're going to be over the next 10 or 15 years because of our asset footprint throughout the United States.

Very excited about the assets that we have built.

As you talked about or you asked about all the other commercialization to you or we can go on and all that.

But Tom just spoke about we are building a new <unk>. This next quarter in the fourth quarter out in the Permian Basin. Most prolific basin in the U S that flows into our NGL system, we have an expansion coming on all of our NGL transportation mid year that feeds into our Frac that comes online in the fourth quarter that feeds onto.

Speaker #3: Thank you. And then maybe just a follow-up on the NGL front, understanding that you have a significant amount of organic growth ahead of you with your infrastructure in flight.

Speaker #3: Just with some of your Permian NGL competitors bringing online downstream assets, recently and through the year, and moving their own volumes back onto their own systems as a result, can you remind us how much third-party downstream Permian Y-grade volumes you have across your system as a mix of total volumes at this point?

Mackie McCrea: That feeds onto the Flex Port expansion that we just completed in 2025. So just an incredible, future for our NGL business in Texas and beyond. We're expanding our Marcus Hook, ethane, capabilities up there to export. We're by far the largest transporter of NGLs in the Northeast, and we see continued upside for our partnership. And then you look at, all the assets and all the demand around our pipelines. It's not just data centers. What we're chasing is power plants that generate electricity for data centers, for population growth, for manufacturing facilities, all the power plants that Tom just talked about, and that our team has done such a good job in Oklahoma. To the best of my knowledge, I don't think any of that is data centers. It's all just for population growth and new manufacturing growth.

<unk> expansion that we just completed in 2025, so just an incredible.

Future for our NGL business in Texas and beyond we're expanding our Marcus hook.

Ethane capabilities up there to export we're by far the largest transporter of Ngls in the northeast.

Speaker #3: How much Y-grade do you transport and frac at this point that doesn't come from your own processing?

<unk> continued upside for our partnership.

Speaker #4: Yeah, it might be Dylan can follow up that percentage, but the majority of our gas, more than half, is coming from our own facilities.

And then you look at.

All of the assets and all the demand around our pipelines.

Not just data centers, what we're chasing as Powerplants that general electricity for Datacenters for population growth for manufacturing facilities. All the power plants that Tom just talked about that our team has done such a good job in Oklahoma.

Speaker #4: We just talked about the two Mustang draw. Both of those together are 550,000 MCF a day. That's approaching 85 to 90,000 barrels alone just from our own cryos.

Speaker #4: And as we ramp up the rest of our cryos, we've got a lot of additional equity-owned liquids that we will be feeding into our massive infrastructure transportation fracking and export business.

My knowledge, helping any of this dataset. It's all just for population growth and new manufacturing go. So we are incredibly excited about our footprint and couldnt be more related of where we're going to be over the next 10 or 15 years because of our asset footprint throughout the United States.

Mackie McCrea: So we are incredibly excited about our footprint and couldn't be more elated of where we're going to be over the next 10 or 15 years because of our, asset footprint throughout the United States.

Speaker #4: I don't know the exact percentage.

Speaker #5: No, Matt, you got it right on. We're about 60% our own volumes, 40% third-party. And that affiliate volume number continues to grow. So we'll keep trending that 60%.

Theresa Chen: Thank you. Then maybe just a follow-up on the NGL front, understanding that you have a significant amount of organic growth ahead of you with your infrastructure in flight. Just with some of your Permian NGL competitors bringing online downstream assets recently and through the year and moving their own volumes back onto their own systems as a result, can you remind us how much third-party downstream Permian wide grade volumes you have across your system as a mix of total volumes at this point? How much wide grade do you transport in frack at this point that doesn't come from your own processing?

Thank you and then maybe just a follow up on the NGL front understanding that you have a significant amount of organic growth ahead of you with your infrastructure in flight.

Speaker #5: I'll trend up higher as we move through the year.

Speaker #3: Perfect. Thank you.

Speaker #2: The next question comes from Gabe Marine with Mizuho. Please go ahead.

With some of your Permian NGL competitors bring online downstream assets recently in through the year and moving their own volume back onto their own systems. As a result can you remind us how much third party downstream Permian Y grade Bolton easy half across your system with a mix of total volumes at this point, how much fiber transport and <unk>.

Speaker #6: Hey, good morning, everyone. Wondering if you could maybe touch on, I think last quarter you talked about converting a pipe from NGL to gas service.

Speaker #6: Potentially where that stands. I don't think you may have touched on it in your opening remark.

Speaker #4: You bet. This is Matthew again. Let me kind of step back a little bit. Energy Transfer has a strategy since the day we began of looking at every asset we own and can we use it in a more profitable, efficient manner.

At this point that doesn't come from your own processing.

Mackie McCrea: Yeah, maybe Dylan can follow this exact percentage, but the majority of our gas, more than half, is coming from our own facilities. We just talked about the two Mustang Draw. Both of those together are 550,000 Mcf/d. That's approaching 85,000 to 90,000 barrels alone, just from our own cryos. And as we ramp up the rest of our cryos, we've got a lot of additional equity-owned liquids that we will be feeding into our massive infrastructure, transportation, fracking, and export business. I don't know the exact percentage.

Yes, maybe Don can follow up.

Is that percentage, but the majority of our gas more than half is coming from our own facilities. We just talked about the two mustang draw both of those together 550000 Mcf a day, that's approaching 85% to 90000 barrels alone just from our own <unk> and as we ramp up the rest of our cryo is we've got a lot of.

Speaker #4: So that's an ongoing thing that always happens with us. We've converted a natural gas pipeline to crude oil and move and balking down to the Gulf Coast.

Speaker #4: We've converted a liquid line to diesel and move and diesel from the Gulf Coast to the Permian Basin. We've converted a TW line to NGLs.

Additional equity owned.

Speaker #4: So it's just kind of on and on. So that's just a process we go through. We evaluated that. What we've looked at now, though, is with the growth in the NGLs, both as Dylan just talked about, not only in our systems, but also barrels that we're chasing on third-party systems.

Liquids that we will be feeding into our massive infrastructure transportation fracking an export business.

I don't know the exact percentage.

Dylan Bramhall: No, Mackey, you are right on. We're about 60% our own volumes, 40% third party, and that affiliate volume number continues to grow. So you know, we'll keep trending that. That 60% will trend up higher as we move through the year.

We're about 60% of our own volumes, 40% third party and that affiliate volume number continues to grow so we'll keep trending that 60% will trend up through the year.

Speaker #4: We can't afford to take that out of business. We're going to fill up that NGL pipeline and if we need to loop another pipeline west to east through Texas, that will be a new project for natural gas.

Theresa Chen: Perfect. Thank you.

Perfect. Thank you.

Operator: The next question comes from Gabe Marine with Mizuho. Please go ahead.

Speaker #6: Thanks, Matthew. I appreciate that. And then maybe if you can just talk a little bit broadly about how your assets perform during some of the winter weather we've been having in the volatility in the gas markets.

The next question comes from Gabe.

<unk> with Mizuho. Please go ahead.

Tom Long: Hey, good morning, everyone. Wondering if you could maybe touch on, I think last quarter you talked about converting a pipe from NGL to gas service, potentially where that stands. I don't think you may have touched on it in your opening remarks.

Gabe Moreen: Hey, good morning, everyone. Wondering if you could maybe touch on, I think last quarter you talked about converting a pipe from NGL to gas service, potentially where that stands. I don't think you may have touched on it in your opening remarks.

Hey, good morning, everyone.

Wondering if you could maybe touch on I think last quarter, you talked about converting them quite from NGL to gas services.

Speaker #6: And also to what extent that may or may not have benefited you guys financially here in the first quarter.

Essentially where that stands I don't think you may have touched on it in your opening remarks.

Speaker #4: Yeah, you know what Tom's leadership and Greg and Daniel and getting our operation team not only offering our assets safely, efficiently, and profitably, but we also pride ourselves on times like this when it's critical to move energy to the markets and in this case, electricity in tough times.

Mackie McCrea: ... You bet. This is Mackey again. Let me kind of step back a little bit. Energy Transfer has a strategy since the day we began of looking at every asset we own, and can we use it in a more profitable, efficient manner? So that's an ongoing thing that always happens with us. We've converted a natural gas pipeline to crude oil and moving Bakken down to the Gulf Coast. We've converted a liquid line to diesel and moving diesel from the Gulf Coast to the Permian Basin. We've converted a TW line to NGLs, so it's just kind of on and on. So that's just a process we go through. We evaluated that.

You bet. This is Mackie again, let me kind of step back a little bit energy transfers at our strategy since the day, we began of looking at every asset we own and can we use it in a more profitable efficient manner. So that's an ongoing thing that always happens with us.

Speaker #4: We proved ourselves during Yuri, paid off in a big way. Same way this last storm that came in January, we were prepared as good as we could be.

We've converted a natural gas pipeline to crude oil and moving Bakken down to the Gulf Coast, we've converted.

A liquid line to diesel and move in diesel from the Gulf Coast to the Permian Basin, we've converted a tw line to Ngls. So it's just kind of on a law. So that's just a process. We go through we evaluated that what we've looked at now though is with the growth in the Ngls, both as Don just talked about not only of our systems, but also barrels that were.

Speaker #4: The negative, positive, however you want to look at it, is that the industry got prepared. They saw what happens if you have an asset that are prepared, they're line packed, storage, you got people manned out on your facilities, you can keep gas flowing as much as possible.

Mackie McCrea: What we've looked at now, though, is with the growth in the NGLs, both, as Dylan just talked about, not only on our systems but also barrels that we're chasing on third-party systems, we can't afford to take that out of business. We're gonna fill up that NGL pipeline, and if we need to loop another pipeline west to east through Texas, that will be a new project for natural gas.

Speaker #4: And you can make a lot of money in those opportunities. So with the industry being I think much more prepared, all of us got through that better.

<unk> third party systems, we can't afford to take that business, we're going to fill up that NGL pipeline and if we need to loop another pipeline west to east, Texas that will be a new project for natural gas.

Speaker #4: We did see volumes come off like they always do with freeze-offs in the Permian Basin. We were able to keep all of our customers whole.

Speaker #4: To our pipeline systems as well as coming out of storage. So yep, we didn't see the type of profits and earnings that we saw a number of years ago with Yuri, but as we always do, our team performed excellently during that very cold seven or eight-day period in Texas and throughout the country.

Gabriel Moreen: Thanks, Mackey. I appreciate that. And then maybe if you can just talk a little bit broadly about how your assets performed during some of the winter weather we've been having and the volatility in the gas markets, and also to what extent that may or may not have benefited you guys financially here in Q1.

Gabe Moreen: Thanks, Mackey. I appreciate that. And then maybe if you can just talk a little bit broadly about how your assets performed during some of the winter weather we've been having and the volatility in the gas markets, and also to what extent that may or may not have benefited you guys financially here in Q1.

Thanks, Matthew I appreciate that and then maybe if you can just talk a little bit broadly about how your assets performed during some of the winter weather, we've been having volatility in the gas markets.

And also to what extent that may or may not have benefited you guys financially here in the first quarter.

Mackie McCrea: Yeah, you know what? Tom's leadership and, and Greg and Daniel, and getting our operation team not only to operate our assets safely, efficiently, and profitably, but we also pride ourselves on times like this when it's critical to move energy to the markets and cri-- in this case, electricity. And in tough times, we proved ourselves during Uri, paid off in a big way. Same way, this last storm that came in in January, we were prepared as good as we could be. The negative, positive, however you want to look at it, is that the industry got prepared.

Speaker #6: Thanks, Matt.

Yes, Tom's leadership, and Greg and Daniel and getting our operation team not only offer assets safely efficiently and profitably, but we also product sales on times like this when it's critical to move energy to the markets and in this case electricity.

Speaker #2: The next question comes from Jean Ann Salisbury with Bank of America. Please go ahead.

Speaker #7: Hi, good morning. I heard in your comments that there could be some early volumes on Q Brinson. I think that with Blackcomb getting pushed to the fourth quarter, there could really be some value to those will those volumes go into your third-party customers or would that kind of all go to ET?

<unk> times, we proved ourselves during <unk> paid off in a big way.

Same way just last fall and that came in the <unk>.

In January we were prepared.

Speaker #7: And any sense of how early those could start to ramp?

Good as we could be the negative positive had we won't look at it is that the industry got prepared they are.

Speaker #4: Yeah, this is Matthew again. First of all, let me just say we keep talking about how our teams, but we've got one of the best ENC teams at probably the best ENC team in the country.

Mackie McCrea: They saw what happens if you have an asset that are prepared, they're line packed, storage, you got people manned out on your stills, you can keep gas flowing as much as possible, and you can make a lot of money in those opportunities. So with the industry being, I think, much more prepared, all of us got through that better. We did see volumes come off, like they always do with freeze-offs in the Permian Basin. We were able to keep all of our customers whole through our pipeline systems, as well as coming out of storage. So yeah, we didn't see the type of profits and earnings that we saw a number of years ago with Uri, but as we always do, our team performed excellently during that very cold 7- or 8-day period in Texas and throughout the country.

Saw what happens if you have an asset they are prepared they are lumpy storage you got people Mandela still you can keep the asphalt as much as possible and you can make a lot of money and those opportunities so with the industry being I think much more prepared all Scott through that better we did see volumes come off like they always do with resolves in the Permian base.

Speaker #4: As we build out these assets. And so we are moving very well ahead of schedule on Q Brinson. However, we're going to be real careful on things can happen.

Speaker #4: We don't know with certainty when volumes will come on. At this point, we are confident that we will be able to bring on some volumes earlier than the fourth quarter.

We were able to keep all of our customers whole through our pipeline systems as well as coming out of storage. So yes, we didn't see the type of <unk>.

Speaker #4: And how we'll manage that and how we'll operate is how we contractually and regulatory or allowed to do so. But we're going to do everything we can to get volumes new egress out of the Permian Basin because it's much needed for the producers who are working who are suffering from negative pricing out of the Waha.

<unk> earnings that we saw a number of years ago with Uri, but as we always do our team performed excellently during that.

Very cold accelerate day period in Texas and throughout the country.

Gabriel Moreen: Thanks, Mackey.

Gabe Moreen: Thanks, Mackey.

Thanks, Mike.

Operator: The next question comes from Jeanann Salisbury with Bank of America. Please go ahead.

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

Speaker #4: And so it's going to be a huge shot in the arm, not only for our assets, but also for the Permian Basin. So we'll see how it plays out.

Jean Ann Salisbury: Hi, good morning. I heard in your comments that there could be some early volumes on Hugh Brinson. I think that with Blackhawk getting pushed to Q4, there could really be some value to those. Will those volumes go to your third-party customers, or would that kind of all go to ET? And any sense of how early those could start to ramp?

Hey, good morning, and I heard in your comments that there could be some early volumes on key brands.

Speaker #4: We'll be able to talk more by the next earnings call on kind of what we think the volume might be and how early it might be.

I think that with black Kevin getting pushed to the fourth quarter, there could really decent value to that as well.

Speaker #4: But right now, we're going to stand by. We're going to have some volumes early in the fourth quarter. We don't know exactly when or how much.

Volumes guarantee of third party customers or would that.

Speaker #7: That makes sense. Thank you. And how do you think about what the limit is for how much Canadian heavy crude could eventually run on the DAPL assets?

And any.

Early that could start to ramp.

Mackie McCrea: Yeah, this is Mackey again. First of all, let me just say, we, we keep talking about our teams, but we've got one of the best E&C teams, if not the best E&C team in the country, as we build out these assets. And so, we are moving very well ahead of schedule on Hugh Brinson. However, we're gonna be real careful on things can happen. We don't know with certainty when volumes will come on. At this point, we are confident that we will be able to bring on some volumes earlier than Q4. And how we'll manage that and how we'll operate is how we contractually and regulatory are allowed to do so.

Yes. This is Mackie again first of all let me just say, we keep talking about our teams, but we've got one of the best E&C teams that are the best E&C team in the country.

Speaker #7: If back in crude production does fall off over the next 5 to 10 years, is there any technical limit to how much the DAPL system could switch over to running Canadian heavy instead?

As we build out these assets and so we are moving very well ahead of schedule on the SKU breadth and however, we're going to be real careful on things can happen. We don't know with certainty when volumes will come on at this point, we are confident that we will be able to bring on some volumes earlier than the fourth quarter.

Speaker #4: Sure. Hey, Jean Ann. This is Adam. So as we're talking about MLO2, which I think is what you're referring to, we've definitely done a look.

Speaker #4: And first and foremost, we're going to make sure that we take care of our balking producers and make sure that they can all move their oil out of that basin.

And how we will manage that and how it will operate as how we contractually and regulatory are allowed to do so but we're going to do everything we can to get volumes, new egress out of the Permian basin, because it's much needed for the producers.

Speaker #4: But as you mentioned, as we see balking volumes kind of steady off and maybe potentially decline in the future, there's a number of different possibilities on moving additional volumes through DAPL.

Mackie McCrea: But we're gonna do everything we can to get volumes, new egress out of the Permian Basin, because it's much needed for the producers who are, you know, working, you know, who are suffering from negative pricing out of the Waha. And so it's gonna be a huge shot in the arm, not only for our assets but also for the Permian Basin. So we'll see how it plays out. We'll be able to talk more about the next earnings call on kind of what we think the volume might be and how early it might be, but right now we're gonna stand by. We're gonna have some volumes early in Q4. We don't know exactly when or how much.

Speaker #4: Right now, the project's scope to move 250,000 barrels a day of light volumes down kind of off the in bridge mainline system through DAPL and into Potoka to deliver back to them there.

We're working with.

Who are suffering from negative pricing out of the wall and so it's going to be a huge shot in the arm not only for our assets, but also for the Permian basin.

Speaker #4: But we're definitely looking, and I think in bridge even alluded to it, some on their call about additional opportunities down the road as we see balking volumes potentially decline.

We will see how it plays out we'll be able part more by the next earnings call. One on kind of what we think the volume might be and how early it might be but right now we're going to stand Bob we're going to have some volumes early in the fourth quarter, we don't know exactly when or how much.

Speaker #7: Okay. Thanks. I'll leave it there.

Speaker #2: The next question comes from Keith Stanley with Wolf Research. Please go ahead.

Jean Ann Salisbury: That makes sense. Thank you. And how do you think about what the limit is for how much Canadian heavy crude could eventually run on the DAPL asset? If Bakken crude production does fall off over the next 5 to 10 years, is there any technical limit to how much the DAPL system could switch over to running Canadian heavy instead?

That makes sense. Thank you.

How do you think about what the limit is or how much Canadian heavy create.

Speaker #6: Hi, good morning. So more of your peers are giving multi-year EBITDA growth expectations. How should we think about medium-term growth for energy transfer if you'd put any framework around that?

Julie Ryan on the dapple at that.

Bakken crude production in Venezuela.

Over the next five to 10 years is there any limit to how much the Dallas system.

You may begin.

Speaker #4: Yeah, Keith, this is Dylan. Let us answer the question this way. But when we set our long-term distribution growth rate of 3 to 5 percent annually, that was very strategically set.

Adam Arthur: Sure. Hey, Jeanann, this is Adam. So as we're talking about MLO2, which I think is what you're referring to, we've definitely done a look. And first and foremost, we're gonna make sure that we take care of our Bakken producers and make sure that they can all move their oil out of that basin. But as you mentioned, as we see Bakken volumes kind of steady off and maybe potentially decline in the future, there's a number of different possibilities on moving additional volumes through DAPL. Right now, the project's scoped to move 250,000 barrels a day of light volumes down, kind of off the Enbridge mainline system, through DAPL and into Patoka to deliver back to them there.

Sure.

This is Adam.

So as we're talking about MLR too.

What you're referring to we've definitely done a look and first and foremost we're going to make sure that we take care of our Bakken producers and make sure that they can all move their oil out of that basin.

Speaker #4: And that's not meant to be a manufactured growth rate that's really driven from eating into coverage. When we set that, that basically sets the floor for what we believe we can achieve for our long-term growth rate.

As you mentioned as we see Bakken volumes kind of steady off and maybe potentially decline in the future. There's a number of different possibilities on moving additional volumes through dapple right now the project's scope to move 250000 barrels a day of light volumes down kind of off the enbridge mainline system through.

Speaker #6: Got it. That's helpful. Second one on so you've talked a lot about Texas NGL. Recontracting or contract expirations. How should we think about recontracting on the Mariner system?

<unk> and into <unk> to deliver back to them there, but we're definitely looking I think enbridge, even alluded to it some on their call about additional opportunities down the road as we see Bakken volumes potentially decline.

Speaker #6: I think some of those contracts expire in a few years too. So do you see pricing upside there, downside, and how is the Mariner system positioned relative to some of the other NGL takeaway options for producers?

Adam Arthur: But we're definitely looking, and I think Enbridge even alluded to it some on their call about additional opportunities, down the road as we see, Bakken volumes potentially decline.

Jean Ann Salisbury: Okay, thanks. I'll leave it there.

Okay. Thanks, I'll leave it there.

Speaker #4: Excuse me. This is Matthew again. Yeah. Excuse me a sec. What incredible set of assets we have up there. We built a lot of franchise.

Operator: The next question comes from Keith Stanley with Wolfe Research. Please go ahead.

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

Keith Stanley: Hi, good morning. So more of your peers are giving multi-year EBITDA growth expectations. How should we think about medium-term growth for Energy Transfer, if you'd put any framework around that?

Hi, good morning, so more of your peers are giving multi year EBITDA growth expectations. How should we think about medium term growth for energy transfer if you'd put any framework around that.

Speaker #4: With our Mariner pipelines going west, but also the majority of it going east. As we speak, and as you know, we're expanding our ethane export capabilities out of Marcus Hook.

Speaker #4: We just see that system as continuing to perform. We're not going to get into strategies about when contracts fall off and when we renegotiating all that.

Gabriel Moreen: Yeah, Keith. Hey, this is Dylan. Let us answer the question this way. But when we set our long-term distribution growth rate of 3% to 5% annually, that was very strategically set. That's not meant to be a manufactured growth rate that's really driven from eating into coverage.

Dylan Bramhall: Yeah, Keith. Hey, this is Dylan. Let us answer the question this way. But when we set our long-term distribution growth rate of 3% to 5% annually, that was very strategically set. That's not meant to be a manufactured growth rate that's really driven from eating into coverage.

Yes. This is bill let us answer the question this way.

But when we set our long term distribution growth rate of 3% to 5% annually that was very strategically set that's not meant to be a manufactured growth rate.

Speaker #4: But let's just leave it this way. We are highly confident to not only will we maintain the level of volume throughput that we're doing today, but that we'll actually be able to grow on that with some opportunities that we're chasing.

Really driven from eating into coverage.

Mackie McCrea: ... When we set that, that basically sets the floor for what we believe we can achieve for our long-term growth rate.

Dylan Bramhall: ... When we set that, that basically sets the floor for what we believe we can achieve for our long-term growth rate.

Set that that basically sets the floor for what we believe we can achieve for our long term growth rate.

Speaker #4: So it's a great business for us. We'll continue to look to ways to expand that business and continue to be the major dominating player for moving natural gas liquids out of the Marshall's Utica areas.

Keith Stanley: Got it. That's helpful. Second one on, so you've talked a lot about Texas NGL recontracting or contract expirations. How should we think about recontracting on the Mariner system? I think some of those contracts expire in a few years too. So do you see pricing upside there, downside? And how is the Mariner system positioned relative to some of the other NGL takeaway options for producers?

Got it.

That's helpful.

Second one on <unk>.

You talked a lot about Texas, NGL re contracting or contract explorations.

Speaker #6: Thank you.

Speaker #2: The next question comes from Julian Dumillon Smith with Jefferies. Please go ahead.

How should we think about <unk>.

Contracting on the Mariner system I think some of those contracts expire in a few years to so do you see pricing upside their downside and how is the mariner system positioned relative to some of the other NGL takeaway options for producers.

Speaker #5: Hey, good morning, team. Thank you guys for the time. I appreciate it. Let me just follow up on a couple of cleanup items here.

Speaker #5: On the Desert Southwest project, can you talk a little about the pro forma economics? I mean, obviously, moving to 48 good stuff. But how are you thinking about just setting the expectations on economics there?

Mackie McCrea: Excuse me, this is Mackey again. Yeah, what a-- excuse us. What an incredible, incredible set of assets we have up there. We built quite a franchise with our Mariner pipelines going west, but also majority of it going east. As we speak, and as you know, we're expanding our ethane export capabilities out of Marcus Hook. We just see that system as continuing to perform. We're not gonna get into the strategies about when contracts fall off and when we'll be renegotiating all that, but let's just leave it this way. We are highly confident that not only will we maintain the level of volume throughput that we're doing today, but that we'll actually be able to grow on that with some opportunities that we're chasing. So it's a great business for us.

Excuse me this is mackie again.

Yes.

Speaker #5: And then going back to Jean Anne's question from a moment ago, looking at the DAPL side, can you talk about maybe some of the tariffs and how you think about that maybe relative to what you saw in the last decade on tariffs to give a little bit of preliminary sense of what pro forma economics might look like for the 250 or more than maybe that you're looking at there?

Oh, what incredible incredible set of assets, we have up there we built quite a franchise with our mariner pipelines going west, but also the majority of it going east.

As we speak and as you know we are expanding our ethane export capabilities out of Marcus Hook.

C that system has continued to perform.

Speaker #4: You bet. This is Matthew. I'll answer the Desert Southwest and then Adam can follow up on the DAPL question. But we'll say it again.

We're not going to get into the strategies about win.

<unk> fall off and Wouldnt be renegotiating all of that but let's just leave it. This way we are highly confident not only will we maintain the level of volume throughput that we're doing today, but they will actually be able to grow on that with some opportunities that we're chasing so it's a great business for us.

Speaker #4: And I just keep thinking about, as Tom read that, how excited I am and we are the executive team about what we've built and the incredible position we're in the country.

Speaker #4: And certainly, moving more gas toward Phoenix is a big deal. If you talk to some of those larger players out there, they're talking about anywhere between 25 and 35 gigawatts of growth above what's needed today.

Mackie McCrea: We'll continue to look at ways to expand that business and continue to be the major dominating player for moving natural gas liquids out of the Marcellus Utica areas.

We'll continue to look at ways to expand that business and continuing to be the major dominating player per move in natural gas liquids out of the Marcellus Utica areas.

Speaker #4: That's a lot more gas than our 48-inch can transport. But talking about returns, I guess I'd say this. We don't want to overexaggerate expectations, but right now, that type of project, that size everything comes in the distance and diameter, and throughput, we think that'll be probably one of the better rate-of-return projects that we've ever built just as far as a one-way flow.

Keith Stanley: Thank you.

Thank you.

Operator: The next question comes from Julian Dumoulin-Smith, with Jefferies. Please go ahead.

The next question comes from Julien Dumoulin Smith with Jefferies. Please go ahead.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you guys for the time, appreciate it. Let me just follow up on a couple cleanup items here. On the Desert Southwest project, can you talk a little about the pro forma economics? I mean, obviously, moving to 48, good stuff, but how are you thinking about just setting the expectations on economics there? And then going back to Gina's question from a moment ago, looking at the DAPL side, can you talk about maybe some of the tariffs and how you think about that, maybe relative to what you saw, you know, in the last decade on tariffs, to give a little bit of preliminary sense of what pro forma economics might look like for the 250 or more, maybe, that you're looking at there?

Hey, good morning team. Thank you guys for the time I appreciate it let me let me just follow up on a couple a couple of cleanup item here.

On the desktop West project can you talk about the pro forma economics, obviously moving to 48, good stuff, but how are you thinking about just setting the expectations on economics, there and then going back to Jean Ann's question from a moment ago.

Speaker #4: We always mention Hugh Brinson. It's going to generate money in multiple directions. But going from east to west to New Mexico, providing new natural gas supplies to markets along southern New Mexico, and then into the just fast-growing population probably data centers, etc., etc., in Phoenix, that's going to be one of the better projects that we've built in a long time.

Looking at the Dapple side can you talk about maybe some of the tariffs and how are you thinking about that maybe relative to what you saw in the last decade on tariffs to give a little bit of a preliminary sense of what pro forma economics might look like for the 250 year or more than maybe that you're looking at there.

Mackie McCrea: You bet. This is Mackey. I'll answer the Desert Southwest, and then Adam can follow up on the DAPL question. But we'll say it again, and I just keep thinking about as Tom read that, how excited I am, and we are, the executive team, about what we've built and the incredible position we're in, in the country. And certainly moving more gas toward Phoenix is a big deal. If you talk to some of those larger players out there, they're talking about anywhere between 25 and 35 gigawatts of growth above what's needed today. That's a lot more gas than our 48-inch can transport.

You bet. This is Mackie I'll answer the desert southwest and then Adam can follow up on that question, but.

Speaker #5: And hey, Julian, this is Adam. So we just closed on an open season on DAPL. And we're really happy with the result. We were able to actually add some incremental volume.

We'll say it again I just keep thinking about as Tom read that how excited I am and we are the executive team about what we've built and the incredible position, we're in and the country and certainly moving more gas towards Phoenix is a big deal. If you talk to some of those larger players out there. They are talking about anywhere between 25 and 35.

Speaker #5: But not only add incremental volume, get some of our base customers extended out well beyond kind of the mid-2030s. And we did that at rates that were good, what we believe good market rates reflective of the value of the assets.

Speaker #5: And so as we kind of tie the MLO2 conversation in with that, we expect those rates to be in line with the rates that we're seeing from the balking producers in the basin.

Gigawatts of growth above what's needed today, that's a lot more gas on our 48 inch can can transport, but talking about returns I guess I would say this we don't want to over exaggerate expectations, but right now that type of project that spas.

Mackie McCrea: But talking about returns, I guess I'd say this, we don't want to over exaggerate the expectations, but right now, that type of project, that size, you know, everything comes in, the distance and diameter and throughput, we think that'll be probably one of the better rate of return projects that we've ever built, just as far as a one-way flow. We always mention Hugh Brinson is gonna generate money in multiple directions, but going from east to west, Luna, New Mexico, providing new natural gas supplies for markets along southern New Mexico, and then into the just fast-growing population, probably data centers, et cetera, et cetera, in Phoenix. That's gonna be one of the better projects that we've built in a long time.

Speaker #6: Yeah. I hear it. Hey, Matthew, just quick super quick on that expansion and further upside, some DSW. I mean, it looks like even next year, we could get some real clarity on the 25-plus that you alluded to a second ago.

Everything comes singing the distance in diameter and throughput, we think that'll be probably one of the better rate of return projects that we've ever built just as far as a one way flow.

Speaker #6: I mean, the scope seems pretty real-time that we're going to get that expansion in capacity through the IRP processes. You think we could be talking about a further expansion of DSW in some form or fashion here in even the next 12 months?

We always mentioned you Brendan is going to generate money in multiple directions, but going from east to west moving to Mexico provide new.

Speaker #6: I know you guys just did it here, but not being facetious.

Natural gas supplies to markets along southern.

Speaker #4: Yeah. We love your thinking. If there's an opportunity to build more pipe, we certainly will do that. I guess I would think about it this way.

New Mexico, and then into the Gist.

Fast growing population, probably data centers et cetera et cetera in Phoenix.

Speaker #4: We own Florida Gas Transmission. We continue to loop that pipeline. We've got gas coming into Florida Gas on the east, moving back into Texas.

That's going to be one of the better projects that we've built in a long time.

Adam Arthur: Hey, Julian, this is Adam. So we just closed on an open season on DAPL, and we're really happy with the result. We were able to actually add some incremental volume, but not only add incremental volume, get some of our base customers extended out, you know, well beyond kind of the mid-2030s. And, you know, we did that at, at rates that were good, what we believe good market rates, reflective of the value of the assets. And so as we kind of tie the MLO2 conversation in with that, we expect those rates to be in line with, with, the rates that we're seeing from the Bakken producers in the basin.

Hey, Julien this is Adam so we just closed on an open season on dapple and we're really happy with the result, we were able to actually add some incremental volume, but not only add incremental volume gets some of our base customers extended out well beyond kind of the mid.

Speaker #4: We've got gas

Speaker #1: Coming to Louisiana , moving back to Texas , and I can go on and on . But we have multiple pipelines in those ditches .

Speaker #1: We're adding our phase nine very likely we'll add phase ten at some point in the future . Do we see desert Southwest being a similar opportunity Absolutely As New Mexico grows and as Phoenix Area grows , with demand for natural gas , for , you , a number of reasons .

Mid 2000 <unk>.

And we did that at rates that were good what we believe good market rates reflective of the value of the assets and so as we kind of tie the MLR to conversation and with that we expect those rates to be in line with with the rates that we're seeing from the Bakken producers in the basin.

Speaker #1: There's there's certainly going to be opportunities to add compression backhaul . Who knows what the future holds . But we certainly will look forward to any of those opportunities .

Speaker #1: On adding additional assets to deliver gas to those markets

Julien Dumoulin-Smith: Yeah, I hear you. Hey, Mackie, just quick, super quick, on that expansion and further upsides on DSW. I mean, it looks like even next year, we could get some real clarity on the 25+ that you alluded to a second ago. I mean, the scope seems pretty real-time that we're gonna get that expansion and capacity through the IRP processes. You think we could be talking about a further expansion of DSW in some form or fashion here in even the next 12 months? I know you guys just did it here, but I'm not being facetious.

Yeah, Hi, here, Hey, Maggie just quick Super quick on that expansion and further upside from DSW I mean, it looks like even next year, we could get some real clarity on the 25 plus that you alluded to a second ago I mean, the scope seems pretty real time that we're going to get that expansion and capacity through the IRB processes. You think we could be talking about in our firm.

Speaker #2: Awesome . Thanks , guys . All the best . Talk soon . See you soon Thank you . The next question . The next question comes from John McKay with Goldman Sachs .

Speaker #2: Please go ahead

Speaker #3: Hey good morning guys . Thank you for the time . Why don't we stay on DFW You guys upsized , but you've made , you know , kept your timeline intact .

Their expansion DSW in some former fashion here in even the next 12 months I know you guys just did here but.

Speaker #3: Can you just remind us when do you kind of need to make a call on sizing ? And then just in terms of executing towards coming online end of the decade , what are the key kind of milestones you want us to watch from our side as you execute

I'm not being facetious.

Mackie McCrea: Yeah, we love your thinking. If there's an opportunity to build more pipe, we certainly will do that. I guess I would think about it this way: we own Florida Gas Transmission. We continue to loop that pipeline. We've got gas coming into Florida Gas on the east, moving back into Texas. We've got gas coming to Louisiana, moving back to Texas, and I can go on and on, but we have multiple pipelines in those ditches. We're adding our Phase Nine; very likely we'll add Phase Ten at some point in the future. Do we see Desert Southwest being of similar opportunities? Absolutely. As New Mexico grows and as Phoenix area grows with demand for natural gas for, you know, a number of reasons, there's certainly gonna be opportunities to loop, add compression, backhaul.

We love your thinking if there is an opportunity to build more pipe, we certainly will do that.

I guess I would think about this way, we owned Florida gas transmission.

We continue to look at pipeline, we've got gas coming into Florida gas on the east moving back into Texas, We've got gas come into Louisiana, Texas and I can go on and on but we have multiple pipelines in those niches, where adding phase nine very likely will add <unk> at some point in the future do we see desert southwest in a similar opportunities absolute.

Speaker #1: Yeah , I'll say once again , our team is so good on all these projects . We try to look ahead and in the marketplace today , you can really get caught off guard if you don't order steel .

Speaker #1: When you price it to your customers , you don't order compression both from not only a pricing standpoint , but also a delivery standpoint .

Speaker #1: Mike Morgan and his team did a great job working with Beth on the timing . So we got way ahead of that . We actually secured 42 inch with the option to go to 48 inch , in the first part of December .

As new Mexico grows and as Phoenix area grows with demand for natural gas for a number of reasons. There's there's certainly going to be opportunities to look at compression backhaul, who knows what the future holds but we certainly will look.

Speaker #1: We exercise that option so that that is officially , of course , a upsized to a 48 inch . We've already ordered all of that pipe , and we've already ordered all the compression to move the full 2.3 BCF a day

Mackie McCrea: Who knows what the future holds, but we certainly will look forward to any of those opportunities on adding additional assets to deliver gas to those markets.

To any of those opportunities on adding additional assets to deliver gas to those markets.

Julien Dumoulin-Smith: Awesome. Thanks, guys. All the best. Talk soon. See you soon.

Awesome. Thanks, guys all the best talk soon.

Okay.

Mackie McCrea: Thank you.

Thank you. The next question. The next question comes from John Mccain with Goldman Sachs. Please go ahead.

Operator: The next question comes from John McKay, with Goldman Sachs. Please go ahead.

Speaker #3: And then just in terms of construction timing , the permits , etc.

Keith Stanley: Hey, good morning, guys. Thank you for the time. Why don't we stay on DSW? You guys upsized, but you've, you know, kept your timeline intact. Can you just remind us, you know, when do you kind of need to make a call on sizing?

John Mackay: Hey, good morning, guys. Thank you for the time. Why don't we stay on DSW? You guys upsized, but you've, you know, kept your timeline intact. Can you just remind us, you know, when do you kind of need to make a call on sizing?

Speaker #1: Yes , we are ahead of schedule . We have customers out there that want a weekly and and monthly updates . So we do this very rigorously .

Hey, good morning, guys. Thank you for the time, when we sit and DSW.

You guys Upsized.

<unk> kept your timeline intact can you just remind us when do you need to make a call on sizing and then just in terms of executing towards coming online end of the decade. What are the key kind of milestones do you want us to watch from our side of the execute.

Speaker #1: As we've said , we've already contacted both local , state and federal constituents . All along the way . We have a substantial amount of the right of way already surveyed or permission to survey as as we've said before , much of this falls in existing corridor of pipelines and utilities .

John Mackay: Then just in terms of executing towards coming online end of the decade, what are the key kind of milestones you want us to watch from our side of the execution?

Mackie McCrea: Yeah, I'll say once again, our E&C team is so good. On all these projects, we try to look ahead, and in the marketplace today, you can really get caught off guard if you don't order steel when you price it to your customers. You don't order compression, both from not only a pricing standpoint, but also a delivery standpoint. Mike Morgan and his team did a great job working with Beth on the timing, so we got way ahead of that. We actually secured 42-inch with the option to go to 48-inch in the first part of December. We exercised that option, so that is officially, of course, upsized to a 48-inch. We've already ordered all of that pipe, and we've already ordered all the compression to move the full 2.3 Bcf a day.

Yes, I'll say once again the team is so good on all of these projects. We try to look ahead and in the marketplace. Today, you can really get caught off guard. If you don't order steel when you price it to your customers you don't order compression both from not only a pricing standpoint, but also a delay.

Speaker #1: So it's in a really good area where we're laying this to and we're we're , you know , right now , worst case will be in by the fourth quarter of 2029 .

Speaker #1: And we'll see if we can do any better like we do on some of our other projects . But everything's going as planned .

<unk> standpoint, Mike Morgan and his team did a great job working with Beth on the timing. So we got way ahead of that we actually secured 42 minutes with the option to go to 48 inch the first part of December we exercised that option. So that that is officially of course.

Speaker #3: Okay . And then just a quick second one for me , Lake Charles , you mentioned you mentioned kind of a couple different options there now that you've kind of suspended your specific project , can you just walk us through what what that could end up looking like

Upsized to a 48 inch we've already ordered all of that pipe.

Speaker #1: Yeah . As we said earlier , we as a strategy Energy Transfer , we're looking at all of our assets , not just our pipeline assets .

And we've already ordered all the compression to move to pull two three Bcf a day.

Speaker #1: And repurposing those , but it's also our terminals . And so as Lake Charles , it looks like it's certainly not going to move forward with us being the lead , whether or not somebody else steps in and looks to build a pipeline on our terminal , we'll see .

John Mackay: Sorry, just in terms of construction timing, the permits, et cetera?

And then sorry, just in terms of construction timing the permits et cetera.

Mackie McCrea: Yes. We are ahead of schedule. We have customers out there that want weekly and monthly updates, so we do this very rigorously. As we've said, we've already contacted both local, state, and federal constituents all along the way. We have a substantial amount of the right-of-way already surveyed or permission to survey. As we've said before, much of this follows an existing corridor of pipelines and utilities, so it's in a really good area where we're laying this to, and we're, you know. Right now, worst case, we'll be in by Q4 2029, and we'll see if we can do any better like we do on some of our other projects, but everything's going as planned.

Yes, we are.

I had a schedule we have customers out there that want a weekly and monthly updates. So we do this very rigorously.

Speaker #1: But in the meantime , we're looking at there's no limit to what we're looking at . We're looking at it could be NGLs .

Speaker #1: It could be a crude oil terminal . It could be a other other commodities . So we're we'll see how it plays out .

We've said, we've already contacted both local state and federal.

Constituents all along the way we have a substantial amount of the write away already surveyed our permission to survey.

Speaker #1: But certainly as I said , we look at all of our assets and that is such a great location . It's it's has a really good draft and a really good terminal .

As we've said before much of this fall with an existing corridor of pipelines and utilities. So it's been a really good area, where where land is to and where we are.

Speaker #1: And we do expect it create some kind of business going forward . That terminal .

Right now a worst case will be in by the fourth quarter of 2029, and we will see if we can do any better like we do on some of our other projects, but everything is going as planned.

Speaker #3: Thank you for the time

Speaker #2: The next question , the next question comes from Manav Gupta with UBS . Please go ahead

John Mackay: Okay. And then just a quick second one from me. Lake Charles, you mentioned, you had mentioned kind of a couple different options there now that you've kind of suspended your specific project. Can you just walk us through what, what that could end up looking like?

Okay, and then just a quick second one from me.

Speaker #4: Good morning . Your guys are obviously leading from the front when it comes to signing up with data centers . There's a lot of focus on pipe and you have some of the best .

Lake Charles.

You mentioned you had mentioned kind of a couple of different options. There now that you've kind of suspended your specific project can you just walk us through what.

Speaker #4: I wanted to focus a little bit on the storage opportunities . These data centers require . What is called like the five nine , you know , in terms of 99.99% utilization .

That could end up looking like.

Mackie McCrea: Yeah, as we said earlier, we as a strategy Energy Transfer, we're looking at all of our assets, not just our pipeline assets and repurposing those, but it's also our terminals. And so at Lake Charles, it looks like it's certainly not gonna move forward with us being the lead. Whether or not somebody else steps in and looks to build a pipeline on our terminal, we'll see. But in the meantime, we're looking at. There's no limit to what we're looking at. We're looking at, it could be NGLs, it could be a crude oil terminal, it could be a- accommodate other, other, commodities. So we'll see how it plays out, but certainly, as I said, we look at all of our assets, and that is such a great location.

Yes, we said earlier, we as a strategy and a transfer we're looking at all of our assets not just our pipeline assets and Repurposing those but it's also our terminals and so as the lake Charles It looks like its certainly not going to move forward with us being the lead whether or not somebody else steps in.

Speaker #4: So can you talk a little bit about how it can benefit from the multiple storage opportunities that will arise as you try and build out these data centers , along with the pipes you're building for them

And it looks to build a pipeline on our terminal we will see but in the meantime, we're looking at there is no limit to what we're looking at we're looking at it could be Ngls it could be a crude oil terminal it could be a accommodate other.

Speaker #1: You bet . I'll give accolades to Adam , who's sitting next to me and his team and what they've done in Texas and a few other states .

Speaker #1: And then Beth and what his her team are doing and other areas around data centers . You know , there's even some some producers and others that are looking to provide gas to data centers , but nobody can really do it unless you own big diameter pipe and unless you can come out of storage .

Commodities, so we'll see how it plays out but certainly as I've said, we look at all of our assets and that is such a great location.

Mackie McCrea: It has a really good draft and a really good terminal, and we do expect it to create some kind of business going forward out of that terminal.

<unk> has a really good draft and really good terminal and we do expect it.

Speaker #1: So we have done a great job . And what's been public and others , other opportunities that we're working on to provide firm transportation to our Big inch pipelines throughout the country .

Right, some kind of business going forward.

Terminal.

John Mackay: Okay. Thank you for the time.

Okay. Thank you for that.

Speaker #1: And then , as we mentioned earlier , we have over 230 BCF of storage and expanding on that , as we speak , to to be able to provide the , you know , pretty much 100% reliability .

Mackie McCrea: Thank you.

Operator: The next question, the next question, comes from Manav Gupta with BBS. Please go ahead.

Your next question. The next question comes from Manav Gupta with UBS. Please go ahead.

Manav Gupta: Good morning. You guys are obviously leading from the front when it comes to signing up with data centers. There's a lot of focus on pipe, and you have some of the best. I wanted to focus a little bit on the storage opportunities. These data centers require what is called, like, the five nine, you know, in terms of 99.99 percent, utilization. So, can you talk a little bit about how ET can, you know, benefit from the multiple storage opportunities that will arise as you try and build out these data centers, along with the pipes you're building for them?

Good morning.

Speaker #1: That's required by these data centers

You guys are obviously, leading from the front when it comes to signing up for data centers. There's a lot of focus on pipe and you have some of the best I wanted to focus a little bit on the storage opportunities. These data centers require we will just kind of like the five nine you know.

Speaker #4: Perfect . My quick follow up is you mentioned , obviously , Oracle , obviously , you're dealing with Fermi and Energy and both those companies are indicating a much stronger demand .

Speaker #4: And I'm just trying to understand if they do decide to upsize their orders and want . Significantly more gas from you , would you be in a position to supply them with a lot more gas than what you have currently signed them on for

In terms of 90, 999% utilization so.

Can you talk a little bit about how <unk> can benefit from the multiple storage opportunities that will arise as you try and build out these data centers along with the pipes you are building for them.

Speaker #1: That is back again , absolutely . I mean , wherever there is a need for natural gas supply , there's no company in the country anywhere close to the capability with the footprint that we have .

Mackie McCrea: You bet. I'll give accolades to Adam, who's sitting next to me, and his team and what they've done in Texas and a few other states, and then Beth and what her team are doing in the other areas around data centers. You know, there's even some producers and others that are looking to provide gas to data centers, but nobody can really do it unless you own big diameter pipe and unless you can come out of storage. So we have done a great job in what's been public and other opportunities that we're working on to provide firm transportation through our big inch pipelines throughout the country.

You bet I'll give accolades to Adam Who's sitting next to me and his team and what they've done in Texas and a few other states and then Beth.

His or her team are doing in the other areas around data centers.

Speaker #1: In fact , our data team put together a map showing all the fiber optic systems that run through the country , and then we also have electric transmission system .

Even some some are producers and others that are looking to provide gas datacenters, but nobody can really do it unless you own big diameter pipe and unless you can come out of storage. So we have done a great job and what's been public and the others. Other opportunities that we're working on to provide firm transportation, who are big inch pipeline throughout the country.

Speaker #1: It's ironic how you can almost lay our pipelines along many of those corridors . So we're extremely well positioned with our big inch gigantic 42 inch pipeline systems throughout .

Speaker #1: Really the country . But especially Texas and some of the other states like Louisiana , nobody's better positioned . And yes , we can upsize , loop , add compression and provide whatever natural gas needs that anybody has along our systems .

Mackie McCrea: And then, as we mentioned earlier, we have over 230 Bcf of storage and expanding on that as we speak, to be able to provide the, you know, pretty much 100% reliability that's required by these data centers.

And then as we mentioned earlier, we have over 230 bcf of storage and expanding on that as we speak.

To be able to provide the pretty.

Pretty much 100% reliability that is required by these data center.

Speaker #4: Thank you so much

Manav Gupta: Perfect. My quick follow-up is, you mentioned obviously Oracle. Obviously you're dealing with Fermi and NT Energy, and so both those companies are indicating a much stronger demand. I'm just trying to understand, if they do decide to upsize their orders and want significantly more gas from you, would you be in a position to supply them with a lot more gas than what you have currently signed them on for?

I'll take my quick follow up is you mentioned, obviously article.

Speaker #2: The next question comes from Michael Bloom with Wells Fargo . Please go ahead

Obviously, youre dealing with fund me and into energy and so both of those companies are indicating a much stronger demand I'm just trying to understand if they do decide to upsize that orders in one significantly more gas from you or would you be in a position to supply them with a lot more gas and what you have currently signed them on floor.

Speaker #5: Thanks . Good morning everyone . Wanted to ask on Waha . Pricing has just been , as you know , very volatile lately .

Speaker #5: Negative in Q4 spiked Q1 with the storm . So can you just remind us how much open capacity you have to capture spreads there ?

Mackie McCrea: That is back again. Absolutely. I mean, wherever there is a need for natural gas supply, there's no company in the country anywhere close to the capability with the footprint that we have. In fact, our data team put together a map showing all the fiber optic systems that run through the country, and then we also have the electric transmission system. It's ironic how you can almost lay our pipelines along many of those corridors. So we're extremely well positioned with our big inch, gigantic 42-inch pipeline systems throughout, really the country, but especially Texas and some of the other states like Louisiana. Nobody's better positioned, and yes, we can upsize, loop, add compression, and provide whatever natural gas needs that anybody has along our system.

Yes. This is Mac again.

Speaker #5: And because I know you've also termed up a bunch of that lately

Absolutely I mean wherever there is a need for natural gas supply there is no.

Speaker #1: Yes , unfortunately . Unfortunately we have turned up a lot of that lately . That's what helped us get Hugh Brenson and other projects done .

<unk> in the country anywhere close to the capability with a footprint that we have in fact, our data team put together a map showing all the fiber optic systems that run through the country and then we also have electric transmission system. It's ironic out you can almost lay our pipelines along many of those corridor. So we're extremely.

Speaker #1: That's just the nature of the business . But we still have about 160,000 MCF a day that we're benefiting from . Wherever the spread is , from a day to day basis .

Speaker #1: And we're pretty excited about you coming on , really opening up the basin for everybody . And to really to benefit the producers

<unk> well positioned with our big inch gigantic 42 inch pipeline systems throughout really the country, but especially <unk>.

Speaker #5: Got it . Thanks for that . And then you and your competitors have all are all expanding . Frac capacity at Bellevue . So I'm curious if you're seeing any change in rates for fractionation with all this new capacity anticipated to enter the market .

Texas and some of the other.

States like Louisiana, Nobody is better positioned and yes, we can upsize lube add compression and provide whatever natural gas needs that anybody has along our system.

Speaker #5: Thanks

Manav Gupta: Thank you so much.

Thank you so much.

Speaker #1: Yep . Probably of all the segments we have , NGL , transportation and fracking segment has has become the most competitive . There tends to be an overbuild or heading toward an over build a little bit in the NGL transport .

Operator: The next question comes from Michael Bloom with Wells Fargo. Please go ahead.

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

Michael Blum: ... Thanks, Ted. Good morning, everyone. Wanted to ask on Waha, you know, pricing has just been, you know, as you know, very volatile lately, negative in Q4, spiked Q1 with the storm. So can you just remind us how much open capacity you have to capture spreads there? And, because I know you've also turned up a bunch of that lately.

Thanks, Good morning, everyone.

Wanted to ask on <unk>.

Speaker #1: Not sure on the frack , but once again , we always answer questions like this in that we really don't . I wouldn't say care , but we don't worry about what our competitors are building .

Pricing has been as you can.

Very volatile lately negative in Q4 spiked Q1 with the storm. So can you just remind us how much open capacity you have to capture spreads there and because I know you've also turned up a bunch of that lately.

Speaker #1: Our jobs are to build assets , fill them up and keep them full for as long as possible . And we feel real good about that , completely filling up our natural gas transportation .

Mackie McCrea: Yes, unfortunately or fortunately, we have turned up a lot of that lately. That's what helped us get Hugh Brinson and other projects done. That's just the nature of the business. But we still have about 160,000 Mcf a day that we're benefiting from wherever the spread is from a day-to-day basis. And we're pretty excited about Hugh Brinson coming on, really opening up the basin for everybody and really to benefit the producers.

Yes, Unfortunately, or Fortunately, we have turned up a lot of that lately, that's what helped us get <unk> and other projects done that just the nature of the business, but we still have about 160000 Mcf a day that we're benefiting from wherever the spread is from a day to day basis.

Speaker #1: And then ramping up our frack nine as we bring it online at the end of this year

Speaker #5: Thanks , Maggie

Speaker #2: The next question comes from Alvaro Elvira Scotto with RBC Capital Markets . Please go ahead .

And.

We're pretty excited about <unk> come out and really opening up the basin for everybody and the early benefits of producers.

Speaker #6: Hey , good morning . Good morning everyone . Thanks for taking my question . I guess with the new growth projects that you announced and this big opportunity set that that you see ahead , where do you think kind of annual growth CapEx could , could shake out over the next few years

Michael Blum: Got it. Thanks for that. And then you and your competitors are all expanding frack capacity at Mont Belvieu. So I'm curious if you're seeing any change in rates for fractionation with all this new capacity anticipated into the market? Thanks.

Got it thanks for that and then.

You and your competitors have all are all expanding frac capacity at Belvieu.

Curious if youre seeing any change in rates for fractionation with all this new capacity anticipated enter the market.

Speaker #7: Yeah , Alvaro , thanks for that . Obviously , when you look out and you go over all these projects that we've been talking about , there's there's a whole whole lot more of them in the queue here that we're looking at .

Mackie McCrea: Yeah, probably of all the segments we have, the NGL transportation and fractionation segment has become the most competitive. There tends to be an overbuild. We're heading toward an overbuild a little bit in the NGL transport. Not sure on the frac, but once again, we always answer questions like this in that we really don't, I wouldn't say care, but we don't worry about what our competitors are building. Our jobs are to build assets, build them up, and keep them full for as long as possible, and we feel real good about that of completely filling up our natural gas transportation and then ramping up our Frac Nine as we bring it online at the end of this year.

Yeah, probably of all the segments, we have the NGL transportation fracking segment has become.

Become the most competitive other tends to be an overbuild or heading towards mobile a little bit in the NGL transport not sure on the Frac, but once again, we always answer questions like this and that we really don't wouldn't say care, but we don't worry about what our competitors are building our jobs are to build assets build them up and keep them full.

Speaker #7: So it's hard . We don't generally give growth guidance like that out there . But you can see that we've given the came out early with the 5 to 5 and a half and with everything we're talking about , we feel like it's going to stay pretty strong .

Speaker #7: So it's probably a little bit early to give that guidance . But it's clearly a lot of a good projects that we have have to look at .

For as long as possible and we feel real good about that.

Speaker #7: I don't know if you want to add a little bit more to that .

Employee fill up our natural gas transportation, and then ramping up our Frac nine as we bring it online at the end of this year.

Speaker #8: Sure . You know , one thing is we look out , one thing to remember is when we talk about our growth capital , growth , capital guidance that we put out for this year .

Michael Blum: Thanks, Mackey.

Thanks Maggie.

Operator: The next question comes from Elvira Scotto with RBC Capital Markets. Please go ahead.

The next question comes from Alvaro.

Speaker #8: We're not as concerned about about about cash flow and staying within cash flow there . When we look at long term , where we really we're really govern .

Elvira Scotto with RBC capital markets. Please go ahead.

Elvira Scotto: Hey, good morning. Good morning, everyone. Thanks for taking my question. I guess with the new growth projects that you announced and this, you know, big opportunity set that you see ahead, where do you think kind of annual growth CapEx could shake out over the next few years?

Good morning.

Speaker #8: This is staying within leverage targets . So as you look out , you know , we have we have strong growth coming on from a lot of assets going in service over the next couple of years .

Good morning, everyone. Thanks for taking my question I guess with the new growth projects that you announced.

A big opportunity.

Speaker #8: And that definitely creates more debt capacity for us . And so I think we're really set up well to be able to fund whatever , whatever Mac and the team put together here over the next few years .

We see ahead.

Where do you think kind of annual growth Capex.

That over the next few years.

Speaker #8: In this great opportunity set that we have in front of us .

Mackie McCrea: Yeah, this, Elvira, thanks for that. Obviously, when you look out and you go over all these projects that we've been talking about, there's a whole lot more of them in the queue here actually that we're looking at. So it's hard. We don't generally give growth guidance like that out there, but you can see that we've come out early with the 5 to 5.5, and with everything we're talking about, we feel like it's gonna stay pretty strong. So it's probably a little bit early to give that guidance, but it's clearly a lot of good projects that we have to look at. I don't know, Dylan, if you want to add a little bit more to that, but.

Yes.

<unk> thanks for that.

Speaker #6: Great . Thanks . And then just one quick follow up on the project with Enbridge . What's what's it going to take to get to FID ?

Obviously, when you look out.

Overall these projects that we've been talking about there's a whole lot more of them in the queue here.

Speaker #6: What else is required at this point

Actually that we're looking at so it's hard we don't generally give growth guidance like that out there, but you can see that we.

Speaker #9: Yeah . So I'll let Enbridge kind of comment on what is required on on their side . But but from our perspective , you know , we're we're ready .

We've given the came out early with the buyer to five and a half and with everything we're talking about we feel like it's going to stay pretty strong. So it's probably a little bit early to give that guidance, but it's clearly a lot of good projects that we have to look at I don't know Ellen if you want to add a little bit more to that.

Speaker #9: We've got the design the systems in place . And you know , there's there's a little bit of work we need to do obviously to to make this work .

Speaker #9: But we're just in the commercialization phase . So continuing to have discussions , productive discussions with customers in Canada

Dylan Bramhall: Sure, Elvira. You know, one thing as we look out, one thing to remember is, when we talk about our growth capital, growth capital guidance that we put out for this year, we're not as concerned about cash flow and staying within cash flow there. When we look at long term, where we really, we really govern this, is staying within leverage targets. So as you look out, you know, we have, we have strong growth coming on from a lot of assets going in service over the next couple of years, and that definitely creates more debt capacity for us. And so I think we're really set up well to be able to fund whatever Mackey and the team put together here over the next few years and this great opportunity set that we have in front of us.

Sure one thing as we look out one thing to remember is when we talk about our growth capital growth capital guidance that we put out for this year.

Speaker #6: Great . Thank you very much

Speaker #2: The next question comes from Zach Van Oeveren with TF . Please go ahead .

We're not as concerned about.

While cash flow and staying within cash flow when we look at long term, where we really were really govern this is staying within leverage targets. So as you look out.

Speaker #3: Hi all . Thanks for taking my question .

Speaker #10: Maybe starting on the Oracle Data Center , can you talk to how much gas is flowing today and what the capacity is on those legacy pipelines ?

We have we have strong growth coming on from a lot of assets going into service over the next couple of years and that definitely creates more debt capacity for us and so if we're really set up well to be able to fund whatever whatever maktoum a team put together here over the next two years on this great opportunity set that we have in front of us.

Speaker #10: Before he gets online

Speaker #1: Yeah , this Mackie again . But that is kind of confidential . We're not going to really share a lot of that exact volume flow at this time .

Speaker #1: But we are connected to our North Texas pipeline . We will be connected to Hugh Brinson in the Abilene area by about middle of the year .

Elvira Scotto: Great, thanks. And then just one quick follow-up on the project with Enbridge. What's, what's it gonna take to get to FID? What else is required at this point?

Great. Thanks, and then just one quick follow up on the project with Enbridge.

What's it going to take to get to.

Speaker #1: So we're well positioned to be able to provide whatever gas supplies that they will need as they build out their data center .

What else is required at this point.

Dylan Bramhall: Yeah. So, I'll let Enbridge kind of comment on what is required on their side. But from our perspective, you know, we're ready. We've got the design systems in place, and, you know, there's a little bit of work we need to do, obviously, to make this work. But we're just in the commercialization phase, so continuing to have discussions, productive discussions with customers in Canada.

Yes, so OLED enbridge kind of comment on what is required on their side, but from our perspective.

Speaker #10: Got it makes sense . And then one more on Hugh Brinson . You know , you talk to more and more backhaul contracts coming online or getting signed .

We are ready we've got the design the systems in place and there's a little bit of work, we need to do obviously to make this work but.

Speaker #10: What in your eyes or what amount of gas do you think will actually make it to Carthage , if any ? Or do you guys think most of that will be absorbed in the Dallas Abilene area

We're just in the commercialization phase so continuing to have discussions.

<unk> productive discussions with customers in Canada.

Elvira Scotto: Great. Thank you very much.

Great. Thank you very much.

Speaker #1: Gosh , we had that crystal ball . We'd certainly think differently about different pipes and stuff , but who knows ? I , you know , as we think about it , there's going to be 10 or 11 BCF of new pipeline capacity built out of the Permian .

Operator: The next question comes from Zach Van Evelyn with TPH. Please go ahead.

The next question comes from Zach <unk> with <unk>. Please go ahead.

Zack Van Everen: Hi, all. Thanks for taking my question. Maybe starting on the Oracle data center, can you talk to how much gas is flowing today and what the capacity is on those legacy pipelines before Hugh Brinson gets online?

Alright, well thanks for taking my question, maybe starting on the Oracle data Center can you talk to how much gas is flowing today and what the capacity is on those legacy pipelines.

Speaker #1: There's several 48 inch pipes and 42 inch pipes being built out of Katy over into Louisiana . Got a bunch of pipes in north Louisiana heading south , and we have a ton of pipes with capacity , so who knows where the pinch points will be .

Before he bramson gets online.

Mackie McCrea: Yeah, this is Mackey again, but that is kind of confidential. We're not gonna really share a lot of that exact volume flow at this time, but we are connected to our North Texas pipeline. We will be connected to Hugh Brinson in the Abilene area by about middle of the year. So we're well positioned to be able to provide whatever gas supplies that they will need as they build out their data center.

Yes. This is mackie again, but that is kind of confidential we're.

Speaker #1: But the message really from us is this there's nobody can predict and answer that question . Where's most gas can be ? Where's the least ?

It's not going to really shared a lot of that exact volume flow at this time, but we are connected to our north Texas pipeline, we will be connected to Hugh Brinson in Abilene area.

Speaker #1: But what we can do is take the least price gas and transport it to the market . That's most needed in most areas of the United States .

By about the middle of the year, So we're well positioned to be able to provide whatever gas supplies that they will need as they build out their data center.

Speaker #1: So we we love the position we're in and we'll be able to capitalize on whatever dynamics happen on the production front and the ebbs and flows from Permian Basin to East Texas to to Haynesville .

Zack Van Everen: Got it. Makes sense. Then one more on Hugh Brinson. You know, you talked about more and more backhaul contracts coming online or, you know, getting signed. What, in your eyes, or what amount of gas do you think will actually make it to Carthage, if any? Or do you guys think most of that will be absorbed in the Dallas kind of Abilene area?

Got it makes sense and then one more on <unk>, you talked to more and more backhaul contracts coming online are getting signed.

Speaker #1: We just love the position we're in , not knowing exactly where all this is headed .

Speaker #10: Got it . Appreciate the time . Thanks

In your eyes, or what amount of gas do you think will actually make it to Carthage, if any or do you guys think most of that will be absorbed in the Dallas kind of Abilene area.

Speaker #2: The next question comes from Jason Gabelman with TD Cowen . Please go ahead .

Speaker #11: Yeah , morning . Thanks for taking my question . You mentioned potential to FID or a high likelihood of FID projects across 13 states related to power .

Mackie McCrea: Gosh, if we had that crystal ball, we'd certainly think differently about different pipes and stuff, but who knows? You know, as we think about it, there's gonna be 10 or 11 BCF of new pipeline capacity built out of the Permian. There's several 48-inch pipes and 42-inch pipes being built out of Katy over into Louisiana. Got a bunch of pipes in North Louisiana heading south, and we have a ton of pipes with capacity. So who knows where the pinch points will be? But the message really from us is this: there's nobody that can predict and answer that question. Where's the most of the gas going to be? Where's the least price? But what we can do is take the least priced gas and transport it to the market that's most needed in most areas of the United States.

Gosh, we had that crystal ball, we certainly think differently about different pipes and stuff, but who knows.

We think about it there's going to be 10, or 11 Bcf of new pipeline capacity built out of the Permian. There's several 48 inch pipes in 42 inch pipes being built at a kt over into Louisiana.

Speaker #11: You know that obviously sounds like a high number on the surface . So wondering if you could give us a flavor of what those projects look like , if they're more like cloud or the Oracle type projects and and if that number has grown since the prior call

A bunch of pipes, north, Louisiana, and South and we have a ton of pipes with capacity, so who knows where the pinch points will be but the message really from US is this there is no body.

Speaker #1: This is Mackey and Adam . If he wants to follow up with this , he's a closer to a lot of this . But once again , I'll give accolades to our data center teams , both one led by Adam and one led by Beth , were chasing every opportunity to provide gas for natural gas fired generation for data centers .

Predict an answer to that question.

<unk>.

Gas can be whereas the lease but what we can do is take the lease price gas and transport it to the market that's most needed.

Speaker #1: We're well positioned with all of our our pipelines . As we mentioned , we're talking to , you know , 150 plus different opportunities .

Most areas of the United States. So we love the position, we're in and we will be able to capitalize on whatever dynamics happened on the production and the ebbs and flows from Permian Basin East, Texas to the Haynesville, We just love the position we're in not knowing exactly where all this is ed.

Mackie McCrea: So we love the position we're in, and we'll be able to capitalize on whatever dynamics happen on the production front, in the ebbs and flows from Permian Basin to East Texas to Haynesville. We just love the position we're in, not knowing exactly where all this is headed.

Speaker #1: And it seems like a new 1 or 2 coming every day . We have some deals that we've already done where there's some options .

Speaker #1: Data centers can exercise and take some capacity on us . So we're it's across the board of the opportunities that we are chasing .

Operator: Got it. Appreciate the time. Thanks. The next question comes from Jason Gabelman with TD Cowen. Please go ahead.

Got it appreciate the time thanks.

Speaker #1: And negotiating . We've been very successful so far . And because of our team and because of our assets , we expect to to do a whole lot more deals tied to electric generation behind data centers .

The next question comes from Jason <unk> with TD Cowen. Please go ahead.

Jason Gabelman: Yeah, morning. Thanks for taking my question. You've mentioned potential to FID or a high likelihood of FID-ing projects across 13 states related to power. You know, that, that obviously sounds like a high number on the surface. So wondering if you could give us a flavor of what those projects look like, if they're more like Cloudburst or the Oracle-type projects, and if that number has grown since the prior call.

Yes. Good morning, Thanks for taking my question.

Speaker #9: And this is Adam . I just add that in terms of like project scope , they really range in size and go anywhere from kind of the new , you know , longer haul , new pipelines to just interconnects that are , you know , like Max mentioned earlier , sitting right on top of our system where at these crossroads of transmission fiber and our assets and are simply just installing a new interconnect .

You've mentioned potential.

Or a high likelihood of being projects across 13 states related to power.

That obviously it sounds like a high number on the surface. So wondering if you could give us a flavor of what those projects look like if theyre more like cloud burst or the Oracle type projects and and if that number has grown since the prior call.

Speaker #9: So the scope really varies from , you know , simple interconnects to bigger pipeline projects .

Mackie McCrea: This is Mackey, and Adam, if he wants to follow up with this, he's closer to a lot of this. But once again, I'll give accolades to our data center teams, both, one led by Adam and one led by Beth. We're chasing every opportunity to provide gas or natural gas-fired generation for data centers. We're well positioned with all of our pipelines. As we mentioned, we're talking to, you know, 150+ different opportunities, and it seems like a new one or two come in every day. We have some deals that we've already done where there are some options data centers can exercise and take some capacity on us. So we're, it's across the board of the opportunities that we are chasing and negotiating.

This is mackie Adam if he wants to follow up with this he is closer to a lot of this but.

Speaker #11: Got it . Great . And my follow up is is more specific to the quarterly results in the press release , there was mention of this regulatory order impacting prior period and current period rates .

Once again I'll give accolades to our data center teams. Both one led by out of a one led by Beth we're chasing every opportunity to provide gas for natural gas fired generation for data centers, we are well positioned with all of our pipelines as we mentioned were talking to 150, plus different opportunities and it seems like a new one or two.

Speaker #11: So one , if you could provide a little more detail on on what specifically that referred to and what that means for the increase in earnings moving forward , because it seemed like it was a net benefit on the quarter and should providing modest uplift to future earnings .

Come in every day.

We have some deals that we've already done where there's some options data centers can exercise and take some capacity on us. So it's across the board of the opportunities that we are.

Speaker #11: Thanks .

Speaker #9: Sure . This is Adam again . I'll hand it over to Dillon for kind of the second half of your question on on the looking forward .

<unk> and negotiating we've been very successful so far and because of our team and because of our assets we expect.

Mackie McCrea: We've been very successful so far, and because of our team and because of our assets, we expect to do a whole lot more deals tied to electric generation behind data centers.

Speaker #9: But to start , let's just say we're extremely happy with kind of the appointment of Chairman Swett and the actions that her the Ferc under her leadership have taken so far , as far as the index issue , specifically , in 22 , Ferc took what was ultimately determined to be an unlawful action and kind of changing the index methodology .

To do a whole lot more deals tied to electric generation behind data center.

Adam Arthur: This is Adam. I'd just add that in terms of, like, project scope, they really range in size and go anywhere from kind of the new, you know, longer haul, new pipelines to just interconnects that are, you know, like Mackey mentioned earlier, sitting right on top of our system. We're at these crossroads of transmission, fiber, and our assets, and are simply just installing a new interconnect. So, the scope really varies from, you know, simple interconnects to bigger pipeline projects.

And this is Adam I'd, just add that in terms of like project scope, they really range in size and go anywhere from kind of the new.

Longer all new pipelines to adjusted interconnect.

Speaker #9: And last year , this Ferc issued an order allowing pipelines to recover those lost revenues . So that's what the those one timers reflect .

Matthew mentioned earlier sitting right on top of our system, whereas these crossroads of transmission fiber in our assets and are simply just installing a new interconnect. So.

Speaker #9: And Dylan can kind of chime in on what it looks like going forward .

Scope really varies from.

Speaker #8: Yeah , yeah . Jason . So why don't I just walk you through real quickly here or wrap up on the quarter and the one time impact .

Simple interconnects to bigger pipeline projects.

Jason Gabelman: Got it. Great. And my follow-up is more specific to the quarterly results. In the press release, there was mention of this regulatory order impacting prior period and current period rates. So wonder if you could provide a little more detail on what specifically that referred to, and what that means for the increase in earnings moving forward, because it seemed like there was a net benefit on the quarter in providing modest uplift of future earnings. Thanks.

Got it great and my follow up is more specific to our quarterly results and the <unk>.

Speaker #8: So we can kind of help you get a clean quarter to help . Help how things are going to look going forward on the NGL segment .

This release there was mention of this regulatory order impact in prior period and current period rates. So wondering if you could provide a little more detail on what specifically that referred to.

Speaker #8: We had $56 million from this regulatory order . That was a one time positive . Get a little carryover effect from where that sets the rates now .

Speaker #8: But that's primarily one time there . We also had a -58 million on the timing of that hedge gains around our hedge . NGL inventory .

And what that means for the increase in earnings moving forward because it seemed like there was a net benefit on the quarter and should provide and modest uplift on future earnings.

Speaker #8: And a $14 million impact from the fog at Nederland . Both of those . So that 72 million total we expect to recoup in the first quarter .

Adam Arthur: Sure. This is Adam again. I'll hand it over to Dylan for kind of the second half of your question on the looking forward. But to start, let's just say we're extremely happy with kind of the appointment of Chairman Sweat and the actions that the FERC, under her leadership, have taken so far. As far as the index issue, specifically in 2022, FERC took what was ultimately determined to be an unlawful action in kind of changing the index methodology. And last year, this FERC issued an order allowing pipelines to recover those lost revenues. So that's what those one-timers reflect, and Dylan can kind of chime in on what it looks like going forward.

Sure.

Speaker #8: So that's a that's a big boost moving into 2026 . There . That's a net -16 on NGL crude picked up 19 one time from the regulatory order .

This is Adam again, I'll hand, it over to Don for kind of the second half of your question on the looking forward, but to start let's just say, we're extremely happy with kind of the appointment of the chairman sweat and the actions that hurt the FERC under her leadership have taken so far as far as the index issue specifically in 'twenty two.

Speaker #8: And midstream lost 14 from transport fees that it pays on that regulatory order . It also had about $20 million from producer shut ins in the Permian , where we saw shut in gas due to low , really negative pricing in Waha for -34 .

<unk> took what was ultimately determined to be an unlawful action and kind of changing the index methodology and last year. This for issued an order, allowing pipelines to recover those lost revenue. So that's what the that those one timers.

Speaker #8: Total net at midstream . And then the big one was a $60 million in transaction expenses . It's unrelated to closing of the parkland transaction .

Speaker #8: If you put this all together . Clean up the quarter . You've got a net negative about $90 million for that fourth quarter here that you'd want to add back to get a clean quarter .

<unk> don't.

Kind of chime in on what it looks like going forward.

Dylan Bramhall: Yeah, yeah, Jason, so why don't I just walk you through real quickly here or wrap up on, on the quarter and the one-time impact, so we can kind of help you get a clean quarter to help how things are going to look going forward. On the NGL segment, we had $56 million from this regulatory order. That was a one-time positive. Get a little carryover effect from where that stands to rates now, but that's primarily one time there. We also had a negative $58 million on the timing of the hedge gains around our hedge NGL inventory and a $14 million impact from the fog at Nederland. Both of those, so that $72 million total, we expect to recoup in Q1. So that's a, that's a big boost moving into 2026 there. That's a net negative $16 million on NGL.

Yes, Jason So why don't I, just walk you through real quickly here or wrap up on the quarter and the one time impacts so again kind of how.

Speaker #8: And like you said , you've got 70 plus million dollars that we expect to recoup of that in the first quarter .

You get a clean quarter to help how things are going to look going forward on the NGL segment, we had $56 million from this regulatory order that was <unk>.

Speaker #10: Right ?

Speaker #11: That's that's super helpful . Thank you

Speaker #2: This concludes our question and answer session . I would like to turn the conference back over to Tom long . For any closing remarks

One time positive get a little carryover effects from where that sets the rates now, but thats, primarily one time. There were also the negative $58 million on the timing of the hedge gains around our edge NGL inventory.

Speaker #7: Yeah . Once again , thank all of you for joining us today . But also a lot of appreciation for some very , very good questions .

$14 million impact from the fog at Nederland, both of those so that 72 million in total we expect to recoup in the first quarter.

Speaker #7: Very good dialogue and discussion on this . As you can see , we've got a lot of great things to talk about with these projects , not just for , you know , just not just for 2026 , but for a long time into the future .

That's a big boost moving into 2026, there that's a net negative 16 on NGL crude picked up 19, one time from the regulatory order.

Dylan Bramhall: Crude picked up 19 one time from the regulatory order, and midstream lost 14 from the transport fees that it pays on that regulatory order. It also had about $20 million from producer shut-ins in the Permian, where we saw shut-in gas due to low, really negative pricing in Waha for a -34 total net at midstream. And then the big one was a $60 million in transaction expenses at Sun related to closing of the Parkland transaction. If you put this all together, clean up the quarter, you've got a net negative about $90 million for that Q4 here that you'd want to add back to get a clean quarter. Like you said, you've got $70+ million that we expect to recoup of that in the Q1.

Speaker #7: Like Mackey was , was mentioning . So thank all of you . We look forward to all your follow up questions . Please , please get a hold of our IR team and we're happy to jump on the call with you .

Midstream loss 14 from.

From transport fees that it pays on that regulatory order and also at about $20 million from producer shut ins in the Permian, where we saw shut in gas due to low really negative pricing in for.

Speaker #7: Again , thanks so much .

For a negative 34 total net at midstream and then the big one was a $60 million in transaction expenses, it's unrelated to the closing of the parkland transaction.

We put this all together clean up the quarter, you've got a net negative about $90 million for the fourth quarter here that you'd want to add back to get a clean quarter.

Said, you've got 70 plus million dollars that we expect to recoup of that in the first quarter.

Jason Gabelman: Great. That's, that's super helpful. Thank you.

Alright, that's super helpful. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tom Long for any closing remarks.

This concludes our question and answer session I would like to turn the conference back over to Tom long for any closing remarks.

Mackie McCrea: Yeah. Once again, thank all of you for joining us today, but also a lot of appreciation for some very, very good questions, very good dialogue and discussion on this. As you can see, we've got a lot of great things to talk about with these projects, not just for, you know, just not just for 2026, but for a long time into the future, like Mackey was mentioning. So thank all of you. We look forward to all your follow-up questions. Please, please get a hold of our IR team, and we're happy to jump on the call with you again. Thanks so much.

Tom Long: Yeah. Once again, thank all of you for joining us today, but also a lot of appreciation for some very, very good questions, very good dialogue and discussion on this. As you can see, we've got a lot of great things to talk about with these projects, not just for, you know, just not just for 2026, but for a long time into the future, like Mackey was mentioning. So thank all of you. We look forward to all your follow-up questions. Please, please get a hold of our IR team, and we're happy to jump on the call with you again. Thanks so much.

Once again, thank all of you for joining us today, but also a lot of appreciation for some very very good questions very good dialogue and discussion on this is you can say we've got a lot of great things to talk about with these projects not just for just not just for 2026, but for.

Long time into the future like Mackie was mentioning so thank all of you. We look forward to all your follow up questions. Please.

Please get a hold of our IR team and we're happy to jump on the call with you again, thanks so much.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

[music].

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