ENERGY TRANSFER LP

Red flags

• Energy Transfer indebtedness was $51.48 billion at December 31, 2025, up from $48.84 billion, while subsidiary debt includes $848 million of Bakken Project debt and substantial Sunoco LP debt.
• Common-unit earnings declined for the second consecutive year: diluted income per common unit was $1.21 in 2025 versus $1.28 in 2024 and $1.09 in 2023; weighted-average common units increased to 3,449.5 million diluted from 3,420.5 million.
• Parkland had $13.35 billion of assets at year-end, but Sunoco LP was still integrating it and Energy Transfer excluded Parkland from its internal-control assessment; the filing notes that certain controls were being evaluated and could change.
• Cash distributions are not guaranteed and depend on subsidiary cash flow, capital expenditures, debt service, working capital, financing access and discretionary cash reserves; Energy Transfer states it has no significant assets other than interests in subsidiaries.
• Derivative and trading activity can produce significant period-to-period earnings volatility, and the filing specifically states that volatility may be favorable or unfavorable.