ETMEDIUM SIGNALFINANCIAL10-K

Energy Transfer expanded its balance sheet significantly with higher inventory levels and increased debt financing, while operating cash flows declined modestly year-over-year.

The company appears to be in an investment phase, building inventory positions and taking on additional debt to fund operations and growth initiatives. The decline in operating cash flow alongside balance sheet expansion suggests either strategic stockpiling for future opportunities or potential working capital pressures that warrant monitoring.

Comparing 2026-02-19 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

ET's balance sheet expanded meaningfully with total assets growing 12.7% to $141.3B, driven primarily by a substantial increase in inventory levels and supported by higher debt financing that rose 14.3% to $68.3B. Gross profit improved 26.3% to $7.3B, indicating solid operational performance, though this was offset by an 11.8% decline in operating cash flow to $10.1B. The overall picture suggests a company investing heavily in inventory and infrastructure while managing the near-term cash flow implications of this strategic positioning.

FINANCIAL STATEMENT CHANGES
Inventory
Balance Sheet
+55.4%
$3.1B→$4.8B

Inventory surged 55.4% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Current Assets
Balance Sheet
+28.4%
$14.2B→$18.2B

Current assets grew 28.4% — improving short-term liquidity or inventory/receivables build.

Gross Profit
P&L
+26.3%
$5.8B→$7.3B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Liabilities
Balance Sheet
+18.2%
$12.7B→$15.0B

Current liabilities rose 18.2% — increased short-term obligations, watch current ratio.

Total Debt
Balance Sheet
+14.3%
$59.8B→$68.3B

Debt rose 14.3% — additional borrowing for investment or operations; monitor coverage ratios.

Total Assets
Balance Sheet
+12.7%
$125.4B→$141.3B

Asset base grew 12.7% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
-11.8%
$11.5B→$10.1B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-14
ADDED
As of February 13, 2026, the registrant had 3,440,314,575 Common Units outstanding.
In addition, we own investments in other businesses, including Sunoco LP and USAC, both of which are master limited partnerships, and we own the managing member of SunocoCorp, a publicly traded limited liability company.
Our pipelines have the capability to transport natural gas from nearly all Lower 48 onshore and offshore supply basins to customers in the Gulf Coast, Southeast, Southwest, Midwest and Northeast United States as well as Canada.
The project was expected to utilize existing dock and storage facilities owned by Lake Charles LNG located on the Lake Charles site.
From 2022 through 2025, Lake Charles LNG Export executed several LNG offtake agreements, which allowed either party to terminate the agreement if Lake Charles LNG Export did not satisfy specified conditions by a specified date.
One of those conditions related to Lake Charles LNG Export making a final investment decision to proceed with the construction of the liquefaction project.
We were previously in discussions with several other parties for potential long-term LNG offtake and potential equity investments in the project.
In December 2025, we announced the suspension of development of the Lake Charles LNG project in order to focus on allocating capital to our significant backlog of natural gas pipeline infrastructure projects that we believe provides superior risk/return profiles.
In the event that a third party assumes the development of the project, it is unlikely that Energy Transfer would commit capital to the project; however, Energy Transfer would be interested in providing natural gas pipeline transportation capacity to a third party under a long term agreement to facilitate natural gas supply to the project.
As a result of Energy Transfer s announcement, several LNG offtake agreements have been terminated based on the nonsatisfaction of the condition related to making a final investment decision by the date specified in the applicable LNG offtake agreement.
REMOVED
As of February 7, 2025, the registrant had 3,431,214,964 Common Units outstanding.
In addition, we own investments in other businesses, including Sunoco LP and USAC, both of which are master limited partnerships.
WTG Midstream also owns eight gas processing plants and two more under construction, one of which was placed in service in 2024.
In July, Energy Transfer and Sunoco LP formed ET-S Permian, a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.
ET-S Permian operates more than 5,000 miles of crude oil and water gathering pipelines and has crude oil storage capacity in excess of 11 million barrels.
Energy Transfer operates one of the largest intrastate pipeline systems in the United States, which provides energy logistics to major trading hubs and industrial consumption areas throughout the country.
The project would utilize existing dock and storage facilities owned by Lake Charles LNG located on the Lake Charles site.
Lake Charles LNG Export entered into a prior development agreement with Shell in March 2019; however, Shell withdrew from the project in March 2020 due to adverse market factors affecting Shell s business following the onset of the COVID-19 pandemic.
The project will benefit from the infrastructure related to the existing regasification facility at the same site, including four LNG storage tanks, two deep water docks and other assets.
During 2022, Lake Charles LNG Export executed six LNG offtake agreements, for an aggregate of nearly 8 million tonnes per annum, including a 20-year LNG agreement with Shell NA LNG LLC.
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