A midstream energy company that moves natural gas, crude oil, and natural gas liquids through tens of thousands of miles of pipelines across the U.S., including the Mont Belvieu NGL Complex and the Mariner East system. Founded in 1996 by Kelcy Warren and Ray Davis as a small Texas pipeline operator, it grew through acquisitions to become one of the nation's largest energy infrastructure networks. Its name reflects its focus on transferring energy from source to market—a fitting label for a business built on moving fuel around the country.
Net income rose 79.5% to $2.09B as Sunoco LP acquisition contributions and NGL export margins drove results.
The Sunoco LP investment delivered a $528 million increase in , reshaping the quarter. rose 78.4% to $34.3 billion and climbed 79.5% to $2.09 billion, driven by contributions from the acquisition and higher NGL export premiums. The partnership is funding a $5.75 billion growth plan while sits at $68.4 billion.
Key takeaways
rose 79.5% to $2.09 billion, up from $1.16 billion a year earlier, as margins increased across all reporting units.
The Investment in Sunoco LP 's rose $528 million, primarily reflecting contributions from recent acquisitions including .
NGL and refined products increased $275 million, driven by higher export premiums, improved marketing margins, and increased terminal fees at Nederland and Marcus Hook.
Section summaries
Management's Discussion and Analysis
Consolidated Adjusted EBITDA rose $1.2B (Q2) and $2.0B (H1) driven by acquisitions, wider basis differentials, and higher volumes across most segments.
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Consolidated increased $1.07B in Q2 and $1.33B in H1 2026, primarily from higher margins across all segments, led by NGL and refined products, crude oil, and the investment.
Intrastate transportation and storage rose $93 million on wider and early volumes from the Hugh Brinson Pipeline commissioning.
rose 78.4% to $34.3 billion, while narrowed 6.0 percentage points to 21.5% as the revenue mix shifted toward lower-margin product sales from acquired operations.
was $4.27 billion for the quarter, funding $2.71 billion in , while declined slightly to $68.4 billion from $69.3 billion at the end of Q1.
What changed
Q1 2026 flagged a one-time sale gain and a Bakken Pipeline deficiency payment inside Sunoco LP and crude oil segments; Q2 results show Sunoco LP rose a further $528 million, indicating the and acquisitions are generating recurring contributions beyond those one-time items.
The prior quarter's watch item asked whether NGL marketing gains would hold; Q2 NGL and refined products rose $275 million, up from the $185 million increase in Q1, confirming export premiums and terminal fees continued to strengthen.
FY2025 flagged the $5.0B–$5.5B 2026 growth plan against declining ; Q2 free cash flow of $2.71 billion and H1 free cash flow of $4.17 billion suggest the partnership is generating sufficient cash to fund the raised $5.75 billion plan, though the full-year outcome remains open.
What to watch
Q3 2026 consolidated against Q2's result to confirm Sunoco LP and NGL gains persist without the early Hugh Brinson Pipeline commissioning volumes.
Full-year 2026 growth of $5.75 billion versus cumulative as spending accelerates in the second half.
Final Record of Decision on the Dakota Access Pipeline easement, expected in early 2026 per the December 2025 environmental impact statement.
trajectory at $68.4 billion and any additional note issuances needed to fund the $5.75 billion plan.
Intrastate transportation and storage rose $93M in Q2 due to wider and early volumes from the Hugh Brinson Pipeline commissioning.
NGL and refined products transportation and services increased $275M in Q2, driven by higher export premiums, improved marketing margins, and increased terminal fees at Nederland and Marcus Hook.
The Investment in 's Adjusted surged $528M in Q2, mainly reflecting contributions from recent acquisitions including .
Cash provided by operating activities was $7.65B for H1 2026, funding $3.45B in and $2.41B in distributions to partners.
2026 growth are expected to be approximately $5.75B, with significant allocations to intrastate transportation, midstream, and NGL and refined products segments.
Quantitative and Qualitative Disclosures About Market Risk
Market risk exposures and management approaches are materially unchanged from year-end 2025.
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Commodity price risk is managed with derivatives; a hypothetical 10% price change would impact fair values by up to $122 million for crude/NGL/refined products and $11 million for power.
Natural gas derivatives show a fair value asset of $7 million for mark-to-market positions and $6 million for as of June 30, 2026.
Interest rate risk arises from $3.02 billion in floating-rate debt; a 100-basis-point shift could change annual by up to $30 million.
The Partnership uses interest rate swaps, including a €111 million swap acquired with , to manage a portion of its interest rate exposure.
Foreign currency translation risk exists from non-U.S. operations, but no material foreign currency derivatives were outstanding as of quarter-end.
Company reports no material legal proceedings; discloses a stayed FERC penalty case and climate lawsuits with unestimable losses.
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FERC seeks a $20 million civil penalty from for alleged lack of forthrightness during pipeline permitting; the matter is stayed pending settlement discussions.
Energy Transfer and filed a federal suit arguing FERC must bring its enforcement action in district court; both the FERC and court cases remain stayed.
and subsidiaries face climate-change lawsuits in Hawaii, Maine, and Vermont alleging deceptive marketing and seeking penalties, disgorgement, and fees.
The company states it cannot estimate possible losses for the climate lawsuits beyond amounts already accrued.
Environmental proceedings exist that could result in monetary sanctions exceeding $1 million, but the company believes none would be material to its financial position.
There have been no material changes from the risk factors described in “Part I – Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026, as updated by “Part II – Item 1A. Risk Factors” of our Quarterl…
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There have been no material changes from the risk factors described in “Part I – Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 19, 2026, as updated by “Part II – Item 1A. Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 filed with the SEC on May 7, 2026 and by Exhibit 99.1 to our current report on Form 8-K filed on July 6, 2026.
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