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Operating cash flow consistently exceeds net income, with OCF/NI averaging 2.3x over ten quarters, and Q2 2026 FCF rebounded to $2.7B from -$225M in Q4 2025, though dividends of ~$1.2B per quarter consume nearly all FCF.
Energy Transfer LP (ET) cash flow statement — 22-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 |
|---|
| Cash from Operations | 12.12B | 10.15B | 11.51B | 9.55B | 9.05B | 11.16B | 7.36B | 8.06B | 7.51B | 4.43B | 3.32B | 2.98B | 3.17B | 2.42B | 1.08B | 1.38B | 1.09B | 723.46M | 1.14B | 754.5M | 310.78M | 38.13M | 122.1M |
| Operating CF Margin % | - | 12.28% | 13.92% | 12.16% | 10.07% | 16.56% | 18.9% | 14.86% | 13.88% | 10.93% | 8.86% | 7.07% | 5.7% | 5% | 6.35% | 16.72% | 16.49% | 13.35% | 12.31% | 11.11% | 3.95% | 0.62% | 5.2% |
| Operating CF Growth % | 33.14% | -11.79% | 20.42% | 5.57% | -18.91% | 51.64% | -8.63% | 7.33% | 69.47% | 33.32% | 11.51% | -6.17% | 31.25% | 124.4% | -21.77% | 26.65% | 50.39% | -36.74% | 51.59% | 142.77% | 714.99% | -68.77% | - |
| Net Income | 5.82B | 5.71B | 6.57B | 5.29B | 5.87B | 6.69B | 140M | 4.83B | 3.42B | 2.37B | 0 | 1.06B | 1.12B | 315M | 1.27B | 528M | 337M | 697.87M | 679.75M | 319.36M | 107.14M | 146.75M | 450.22M |
| Depreciation & Amortization | 6.09B | 5.68B | 5.17B | 4.38B | 4.16B | 3.82B | 3.68B | 3.15B | 2.86B | 2.55B | 2.22B | 1.95B | 1.72B | 1.31B | 871M | 586M | 406M | 325.02M | 274.37M | 198.07M | 133.59M | 111.7M | 58.49M |
| Stock-Based Compensation | 166M | 148M | 151M | 130M | 115M | 111M | 121M | 113M | 105M | 99M | 70M | 91M | 82M | 61M | 47M | 42M | 31M | 25.83M | 25.55M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 338M | 178M | 276M | 203M | 187M | 141M | 210M | 217M | -7M | -1.87B | -201M | 242M | -50M | 43M | 51M | -13.16M | 13.91M | 8.42M | -8.18M | -6.94M | -6.72M | -1.61M | -5.41M |
| Other Non-Cash Items | -59M | 409M | -455M | -6M | 219M | -109M | 3.17B | 145M | 895M | 1.47B | 1.39B | 509M | 526M | 836M | -614M | 63M | 50M | 14.95M | 40.64M | -4.1M | 177.15M | -58.92M | -391.59M |
| Working Capital Changes | -1.45B | -1.98B | -196M | -451M | -1.5B | 515M | 47M | -391M | 234M | -192M | -179M | -872M | -231M | -149M | -551M | 158M | 260M | -348.64M | 131.57M | 248.1M | -100.38M | -159.78M | 10.39M |
| Change in Receivables | -5.77B | -46M | -760M | -176M | -840M | -3.32B | 873M | -542M | 703M | -924M | -1.08B | 851M | 630M | -500M | 272M | -17M | 67M | 24.18M | 215.98M | 45.56M | 203.95M | -263.56M | -101.97M |
| Change in Inventory | -201M | -717M | -735M | 35M | -361M | -19M | -271M | -19M | 237M | 58M | -480M | -212M | 51M | -254M | -258M | 51M | 15M | -101.59M | 96.14M | 196.17M | -83.45M | -116.89M | 35.46M |
| Change in Payables | 4.73B | -346M | 1.28B | -539M | 31M | 3.8B | -960M | 114M | -968M | 534M | 1.11B | -670M | -845M | 401M | -897M | 27M | -77M | -11.84M | -309.72M | 0 | 0 | 0 | 0 |
| Cash from Investing | -9.61B | -8.37B | -5.9B | -4.33B | -4.02B | -2.77B | -4.9B | -6.68B | -7.08B | -5.61B | -9.47B | -10.09B | -6.79B | -2.35B | -4.2B | -3.87B | -1.83B | -1.35B | -2.02B | -2.16B | -1.24B | -1.13B | -731.83M |
| Capital Expenditures | -6.9B | -6.3B | -4.16B | -3.13B | -3.38B | -2.82B | -5.13B | -5.96B | -7.41B | -8.44B | -8.09B | -9.39B | -5.38B | -3.5B | -3.27B | -1.81B | -1.51B | -748.62M | -2.05B | -1.1B | -680.16M | -196.46M | -109.69M |
| CapEx % of Revenue | 6.6% | 7.63% | 5.04% | 3.99% | 3.76% | 4.19% | 13.17% | 10.99% | 13.69% | 20.84% | 21.58% | 22.28% | 9.66% | 7.25% | 19.28% | 21.97% | 22.88% | 13.82% | 22.11% | 16.15% | 8.65% | 3.18% | 4.67% |
| Acquisitions | -2.94B | -2.26B | -2.83B | -1.33B | -839M | -209M | -38M | -299M | 6M | 2.63B | -1.64B | -945M | -1.81B | 946M | -1.37B | -2.12B | -437.84M | 30.37M | -84.78M | -90.69M | -586.18M | -1.13B | -622.93M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 231M | 191M | 1.17B | 135M | 198M | 256M | 270M | 98M | -7.05B | -3B | 8.2B | -9.1B | -4.65B | -3.29B | -2.79B | 58.65M | 117.84M | -627.5M | 50.05M | 23.14M | 19.65M | 194.55M | 786K |
| Cash from Financing | -1.73B | -816M | -5.45B | -5.33B | -5.11B | -8.42B | -2.39B | -1.6B | -3.08B | 953M | 5.93B | 6.79B | 3.88B | 146M | 3.36B | 2.54B | 761.05M | 598.59M | 1.23B | 1.45B | 926.37M | 1.03B | 637.51M |
| Debt Issued (Net) | 3.57B | 4.82B | 4.74B | 714M | -843M | -6.05B | 307M | 2.37B | -118M | 85M | 6.97B | 6.63B | 4.49B | 983M | 4.02B | 1.94B | 261.75M | 522.02M | 1.29B | 680.53M | 928.75M | 1.22B | 375.66M |
| Equity Issued (Net) | 1.47B | 973M | -3.47B | 0 | 0 | -31M | 1.58B | 755M | 0 | 3.75B | 0 | 2.83B | 3.06B | 0 | 1.1B | 1.9B | 1.55B | 936.34M | 373.06M | 372.43M | 104.54M | 507.72M | 528.13M |
| Dividends Paid | -4.78B | -4.72B | -4.62B | -4.25B | -3.05B | -1.9B | -2.8B | -3.05B | -1.68B | -1.01B | -1.02B | -1.09B | -819M | -731M | -666M | -1.3B | -1.05B | -852.13M | -435.87M | -277M | -101.26M | 0 | -266.28M |
| Share Repurchases | 0 | 0 | -3.47B | 0 | 0 | -31M | 0 | -25M | -24M | -53M | 0 | -1.06B | -1B | -340M | 0 | 0 | 0 | 0 | 0 | 0 | -369.44M | 0 | 0 |
| Other Financing | -1.99B | -1.88B | -2.1B | -1.79B | -1.22B | -438M | -1.47B | -1.66B | -1.28B | -1.87B | -29M | -1.58B | -2.85B | -106M | -1.1B | -785.18M | -2.06M | -390.57M | 0 | 488.95M | -5.67M | -28.89M | 0 |
| Net Change in Cash | 778M | 960M | 151M | -96M | -79M | -31M | 76M | -128M | 83M | -131M | -123M | -241M | 257M | 218M | 246M | 40.08M | 17.95M | -23.71M | 35.47M | 51.15M | -7.25M | -49.39M | 27.78M |
| Free Cash Flow | 5.22B | 3.85B | 7.34B | 6.42B | 5.67B | 8.34B | 2.23B | 2.19B | 99M | -4.01B | -4.67B | -6.32B | -2.21B | -1.09B | -2.19B | -433.54M | -423.1M | -25.16M | -1.23B | -342.17M | -369.38M | -140.01M | 12.41M |
| FCF Margin % | 5% | 4.65% | 8.88% | 8.17% | 6.31% | 12.37% | 5.73% | 4.05% | 0.18% | -9.91% | -12.47% | -15% | -3.96% | -2.25% | -12.93% | -5.26% | -6.41% | -0.46% | -13.25% | -5.04% | -4.7% | -2.27% | 0.53% |
| FCF Growth % | -8.47% | -47.62% | 14.34% | 13.25% | -32.01% | 273.82% | 1.69% | 2116.16% | 102.47% | 14.12% | 26.01% | -186.4% | -103.13% | 50.48% | -405.84% | -2.47% | -1581.63% | 97.96% | -259.78% | 7.37% | -163.83% | -1228.18% | - |
| FCF per Share | 1.51 | 1.05 | 2.15 | 2.02 | 1.83 | 3.04 | 0.83 | 0.83 | 0.07 | -3.49 | -4.33 | -5.94 | -2.01 | -0.97 | -2.05 | -0.49 | -0.47 | -0.03 | -1.38 | -0.42 | -0.69 | -0.26 | 0.02 |
| FCF Conversion (FCF/Net Income) | 0.90x | 2.07x | 2.39x | 2.43x | 1.90x | 2.04x | -11.36x | 2.29x | 4.43x | 4.64x | 3.34x | 2.51x | 5.02x | 12.34x | 3.55x | 4.45x | 5.64x | 1.64x | 3.05x | 2.36x | 2.90x | 0.26x | 0.27x |
| Interest Paid | 0 | 0 | 2.88B | 2.3B | 2.17B | 2.19B | 0 | 0 | 1.87B | 1.91B | 0 | 1.8B | 1.42B | 1.26B | 997M | 476M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 206M | 103M | 54M | 41M | 0 | 0 | 508M | 50M | 0 | 72M | 345M | 58M | 23M | 24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ET stock.
Energy Transfer LP (ET) generated $10.15B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Energy Transfer LP (ET) generated $3.85B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Energy Transfer LP (ET) spent $6.30B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Energy Transfer LP (ET) returned $4.72B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High leverage and interest rate sensitivity
Metrics are mathematically derived from official filings.
Cash Conversion Strength Masks Earnings Volatility
Energy Transfer's operating cash flow consistently exceeds net income, with OCF/NI averaging 2.3x over the last ten quarters, per reported financials, indicating robust cash generation despite volatile marketing-driven earnings.
The persistent gap between operating cash flow and net income, driven largely by non-cash depreciation and amortization, suggests that reported earnings understate the company's cash-generating ability. However, the wide quarterly swings in OCF/NI, from 1.30x in Q4 2025 to 3.04x in Q4 2024, reflect the influence of working capital changes and marketing spreads, warranting caution in extrapolating any single quarter's conversion quality.
Free Cash Flow Rebound After Capex Peak
Free cash flow turned positive in Q2 2026 at $2.7B, per the cash flow statement, recovering from a negative $225M in Q4 2025 as capital expenditures moderated and operating cash flow surged.
The FCF margin improved to 7.8% in Q2 2026 from -1.0% in Q4 2025, indicating that the company is emerging from a period of heavy investment. The trajectory suggests that recent acquisitions are beginning to contribute to cash generation, though the sustainability of this improvement depends on maintaining operating cash flow levels while capex remains elevated relative to historical norms.
Capital Intensity Reflects Growth Ambitions
Capital expenditures averaged $1.4B per quarter over the last ten quarters, per the cash flow statement, representing roughly 6% of revenue, a level that suggests ongoing investment in growth projects rather than mere maintenance.
The capex-to-revenue ratio has ranged from 3.7% to 9.5%, with the higher figures in late 2025 likely tied to integration of Crestwood and WTG Midstream. While this spending supports future fee-based cash flows, investors should monitor whether management's classification of maintenance versus growth capex remains conservative, as misclassification could inflate distributable cash flow.
Working Capital Swings Reflect Marketing Activity
Working capital changes have been volatile, swinging from a positive $873M in Q1 2024 to a negative $1.5B in Q4 2025, per the cash flow statement, highlighting the impact of commodity price movements on receivables and payables.
The large negative working capital adjustments in several quarters, particularly Q4 2025, suggest that the marketing segment's trading activities can cause significant cash flow timing differences. This volatility is a key reason why operating cash flow can diverge sharply from net income in any given quarter, and it underscores the importance of evaluating ET on a multi-quarter basis.
Distributions Consume Most Free Cash Flow
Dividends paid have been stable at roughly $1.2B per quarter, per the cash flow statement, consuming nearly all free cash flow in most quarters, leaving little room for debt reduction or buybacks.
With dividends averaging $1.2B and FCF averaging $1.5B over the last ten quarters, the payout ratio is high, suggesting that the distribution is a priority. The absence of buybacks in recent quarters, except for Q2 2024, indicates a conservative capital return policy focused on maintaining the distribution, which may limit flexibility to deleverage.
Cumulative Cash Generation Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $28.4B exceeded cumulative net income of $13.1B by more than double, per the cash flow statement, underscoring the non-cash nature of depreciation and amortization.
This divergence is typical for midstream companies with large asset bases, but the magnitude here is notable. It suggests that ET's ability to service debt and fund distributions is stronger than net income alone would imply, yet it also highlights the risk that if the company's assets require higher maintenance capex in the future, the gap could narrow.
What Could Invalidate the Base Case
The cash flow statement obscures potential risks from subjective capex classification and marketing volatility, as per reported figures, which could overstate distributable cash flow if maintenance costs are mislabeled as growth.
Management's discretion in classifying maintenance versus growth capex may inflate reported DCF, and the volatile working capital swings tied to marketing activities could mask underlying cash flow stability. Additionally, the high leverage and interest rate sensitivity, with debt near $59.8B, could pressure free cash flow if refinancing costs rise, warranting close monitoring of debt maturities and interest coverage.