Energy Transfer LPET

Energy Transfer LP Earnings Per Share Disclosure

10-KFiled Feb 19, 20262 min read
NET INCOME PER COMMON UNIT:
Basic net income per common unit is computed by dividing net income, after considering the General Partner’s interest, by the weighted average number of limited partner interests outstanding. Diluted net income per common unit is computed by dividing net income (as adjusted as discussed herein), after considering the General Partner’s interest, by the weighted average number of limited partner interests outstanding. For the diluted earnings per share computation, income allocable to the limited partners is reduced, where applicable, for the decrease in earnings from Energy Transfer’s limited partner unit ownership in Sunoco LP and USAC that would have resulted assuming the incremental units related to Sunoco LP’s and USAC’s respective long-term incentive plans, as applicable, had been issued during the respective periods. Such units have been determined based on the treasury stock method.
A reconciliation of net income and weighted average units used in computing basic and diluted net income per unit is as follows:
 Years Ended December 31,
 202520242023
Net income$5,708 $6,565 $5,294 
Less: Net income attributable to redeemable noncontrolling interests67 59 60 
Less: Net income attributable to noncontrolling interests1,208 1,692 1,299 
Net income, net of noncontrolling interests4,433 4,814 3,935 
Less: General Partner’s interest in income4 4 3 
Less: Preferred Unitholders’ interest in income248 362 463 
Less: Loss on redemption of preferred units8 54 — 
Common Unitholders’ interest in net income$4,173 $4,394 $3,469 
Basic Income per Common Unit:
Weighted average common units3,432.9 3,395.1 3,161.7 
Basic income per common unit$1.22 $1.29 $1.10 
Diluted Income per Common Unit:
Common Unitholders’ interest in net income$4,173 $4,394 $3,469 
Dilutive effect of equity-based compensation of subsidiaries and distributions to convertible units(1)(1)(1)
Diluted income available to Common Unitholders$4,172 $4,393 $3,468 
Weighted average common units3,432.9 3,395.1 3,161.7 
Dilutive effect of unvested unit awards16.6 25.4 15.5 
Weighted average common units, assuming dilutive effect of unvested unit awards3,449.5 3,420.5 3,177.2 
Diluted income per common unit$1.21 $1.28 $1.09 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 14, 2025
2019Feb 21, 2020

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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