Energy Transfer Secures 20-Year Transportation Agreements for South Mississippi Pipeline
Key Facts
On November 3, Energy Transfer reported results for the quarter ended September 30, 2026, and said it had secured 20-year, demand-based firm transportation agreements to support the South Mississippi pipeline. The project spans 215 miles, the company said, from a connection near the Perryville hub to an interconnect with the FGT pipeline in South Mississippi. It said on its earnings call that the binding supplemental open season is still underway. That means the project’s final volume and capacity will be determined after the process is complete. The company counts the project among its investments in its natural gas transportation network as it continues to gather customer commitments to finalize its details.
The company reported third-quarter revenue of $37.103 billion, compared with $19.954 billion in the same period of 2025. Net income attributable to partners was $1.21 billion, compared with $1.02 billion a year earlier. Adjusted net income per common unit was $0.33. In the second quarter of 2026, adjusted earnings before interest, taxes, depreciation and amortization were $5.07 billion, up from $3.87 billion in the second quarter of 2025, an increase of 31%. In August, the company raised its 2026 adjusted earnings before interest, taxes, depreciation and amortization guidance range to $18.8–19.1 billion, from a previous range of $18.2–18.6 billion.
On expansion, the company said the first phase of the Hugh Brinson pipeline entered full service on September 1, 2026, ahead of schedule. The second phase is scheduled to enter service in the first quarter of 2027. It includes additional downstream compression, and the company expects it to lift capacity to more than 2.3 billion cubic feet per day once operational. In October, Energy Transfer announced its acquisition of Vaquero Midstream for about $2.6 billion, expecting to close the deal in the fourth quarter of 2026, subject to customary approvals and conditions. These developments provide context for the company’s announced expansion plans alongside its third-quarter results.
On operating performance, the company said gathering and processing volumes rose in most regions, driven mainly by new and upgraded facilities in the Permian, dry gas gathering in the northeastern United States and the Ark-La-Tex regions. It also attributed higher natural gas liquids production to increased utilization of Permian facilities. Investing.com reported that the company’s units rose 0.88% in premarket trading after the results were announced. The company scheduled its earnings call for November 3, 2026, at 8 a.m. Central Time, or 9 a.m. Eastern Time. During the call, it said the binding open season for the South Mississippi pipeline was still underway.