Energy Transfer LP

RESULTS OF OPERATIONS

We report Segment Adjusted EBITDA and consolidated Adjusted EBITDA as measures of segment performance. We define Segment Adjusted EBITDA and consolidated Adjusted EBITDA as total partnership earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, inventory valuation adjustments, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items, as well as certain non-recurring gains and losses. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent only the changes in lower of cost or market reserves on inventory that is carried at LIFO. These amounts are unrealized valuation adjustments applied to Sunoco LP’s fuel volumes remaining in inventory at the end of the period.

Segment Adjusted EBITDA and consolidated Adjusted EBITDA reflect amounts for unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA and consolidated Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Segment Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly.

Segment Adjusted EBITDA, as reported for each segment in the following table, is analyzed for each segment in the section titled “Segment Operating Results.” Adjusted EBITDA is a non-GAAP measure used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of the Partnership’s fundamental business activities and should not be considered in isolation or as a substitution for net income, income from operations, cash flows from operating activities or other GAAP measures.

Consolidated Results

Net Income. For the three months ended September 30, 2024 compared to the same period last year, net income increased $387 million, or approximately 37%, primarily due to the recognition of a $625 million non-operating litigation-related loss in the prior period. This impact was partially offset by an increase in interest expense, as well as changes in Segment Adjusted EBITDA, as discussed below.

For the nine months ended September 30, 2024 compared to the same period last year, net income increased $1.39 billion, or approximately 37%, primarily due to the recognition of a $598 million gain on Sunoco LP’s sale of its West Texas assets in the current period, as well as the recognition of a $625 million non-operating litigation-related loss in the prior period. The change in net income also reflected higher segment margin from multiple segments, partially offset by increases in operating expenses, selling, general and administrative expenses, depreciation, depletion and amortization, impairment losses, interest expense and income tax expense; these changes are discussed in more detail below and in “Segment Operating Results.”

Adjusted EBITDA (consolidated). For the three months ended September 30, 2024 compared to the same period last year, Adjusted EBITDA increased primarily due to the impacts of recently acquired assets, as well as higher volumes in our midstream segment and higher pipeline optimization in our intrastate transportation and storage segment.

For the nine months ended September 30, 2024 compared to the same period last year, the increase in Adjusted EBITDA reflected higher earnings from multiple segments, primarily due to the impacts of recently acquired assets.

Additional discussion on the changes impacting net income and Adjusted EBITDA for the three and nine months ended September 30, 2024 compared to the same periods last year is available below and in “Segment Operating Results.”

Depreciation, Depletion and Amortization. Depreciation, depletion and amortization increased for the three and nine months ended September 30, 2024 compared to the same periods last year primarily due to additional depreciation and amortization from assets recently placed in service and recent acquisitions.

Interest Expense, Net of Interest Capitalized. Interest expense, net of interest capitalized, increased for the three and nine months ended September 30, 2024 compared to the same periods last year primarily due to higher aggregate debt balances as a result of recent acquisitions and an increase in Sunoco LP’s debt, including the impact of the NuStar acquisition, as well as higher interest rates on floating rate and recently refinanced debt.

Income Tax Expense. For the three and nine months ended September 30, 2024 compared to the same periods last year, income tax expense increased due to the taxable gain recognized by a corporate subsidiary of Sunoco LP on its sale of West Texas assets.

Impairment Losses. For the nine months ended September 30, 2024, impairment losses were related to Sunoco LP’s termination of a lease in June 2024. For the three months ended September 30, 2023, impairment losses included a total of $1 million recognized by USAC related to its compression equipment. For the nine months ended September 30, 2023, impairment losses included a total of $12 million recognized by USAC related to its compression equipment.

(Gain) loss on Interest Rate Derivatives. Gains and losses on interest rate derivatives resulted from changes in forward interest rates, which caused our forward-starting swaps to change in value.

Unrealized (Gain) Loss on Commodity Risk Management Activities. The unrealized gains and losses on our commodity risk management activities include changes in fair value of commodity derivatives and the hedged inventory included in designated fair value hedging relationships. Information on the unrealized gains and losses within each segment are included in “Segment Operating Results,” and additional information on the commodity-related derivatives, including notional volumes, maturities and fair values, is available in “Item 3. Quantitative and Qualitative Disclosures About Market Risk” and in Note 12 to our consolidated financial statements included in “Item 1. Financial Statements.”

Inventory Valuation Adjustments. Inventory valuation adjustments represent changes in lower of cost or market reserves using the last-in, first-out method on Sunoco LP’s inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period. For the three months ended September 30, 2024 and 2023, the Partnership’s cost of products sold included unfavorable inventory valuation adjustments of $197 million and favorable inventory adjustments of $141 million, respectively, related to Sunoco LP’s LIFO inventory. For the nine months ended September 30, 2024 and 2023, the Partnership’s cost of products sold included unfavorable inventory adjustments of $99 million and favorable inventory adjustments of $113 million, respectively, related to Sunoco LP’s LIFO inventory.

Loss on Extinguishment of Debt. For the nine months ended September 30, 2024, the loss on extinguishment of debt included a $4 million loss on Energy Transfer’s redemption of its $450 million aggregate principal amount of 8.00% senior notes due April 2029, a $2 million loss recognized by Sunoco LP and a $5 million loss related to USAC’s redemption of its $725 million aggregate principal amount of 6.875% senior notes due 2026.

Adjusted EBITDA Related to Unconsolidated Affiliatesand Equity in Earnings of Unconsolidated Affiliates. See additional information in “Supplemental Information on Unconsolidated Affiliates” and “Segment Operating Results.”

Non-Operating Litigation-Related Loss. Non-operating litigation-related loss recognized in the three and nine months ended September 30, 2023 represents the loss associated with The Williams Companies, Inc. litigation.

Gain on sale of West Texas Assets. The gain on sale of West Texas assets was related to the gain recognized by Sunoco LP on its sale of convenience stores to 7-Eleven Inc.

Other, net. Other, net primarily includes the amortization of regulatory assets and other income and expense amounts.

Supplemental Information on Unconsolidated Affiliates

The following table presents financial information related to unconsolidated affiliates:

(1)These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated affiliates and are based on our equity in earnings or losses of our unconsolidated affiliates adjusted for our proportionate share of the unconsolidated affiliates’ interest, depreciation, depletion, amortization, non-cash items and taxes.

Segment Operating Results

We evaluate segment performance based on Segment Adjusted EBITDA, which we believe is an important performance measure of the core profitability of our operations. This measure represents the basis of our internal financial reporting and is one of the performance measures used by senior management in deciding how to allocate capital resources among business segments.

The following tables identify the components of Segment Adjusted EBITDA, which is calculated as follows:

•Segment margin, operating expensesand selling, general and administrative expenses. These amounts represent the amounts included in our consolidated financial statements that are attributable to each segment.

•Unrealized gains or losses on commodity risk management activities and inventory valuation adjustments. These are the unrealized amounts that are included in cost of products sold to calculate segment margin. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are added back and the unrealized gains are subtracted to calculate the segment measure.

•Non-cash compensation expense. These amounts represent the total non-cash compensation recorded in operating expenses and selling, general and administrative expenses. This expense is not included in Segment Adjusted EBITDA and therefore is added back to calculate the segment measure.

•Adjusted EBITDA related to unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Segment Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates.

The following analysis of segment operating results includes a measure of segment margin. Segment margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment margin is similar to the GAAP measure of gross margin, except that segment margin excludes charges for depreciation, depletion and amortization. Among the GAAP measures reported by the Partnership, the most directly comparable measure to segment margin is Segment Adjusted EBITDA; a reconciliation of segment margin to Segment Adjusted EBITDA is included in the following tables for each segment where segment margin is presented.

In addition, for certain segments, the following sections include information on the components of segment margin by sales type, which components are included in order to provide additional disaggregated information to facilitate the analysis of segment margin and Segment Adjusted EBITDA. For example, these components include transportation margin, storage margin and other margin. These components of segment margin are calculated consistent with the calculation of segment margin; therefore, these components also exclude charges for depreciation, depletion and amortization.

Intrastate Transportation and Storage

Volumes. For the three and nine months ended September 30, 2024 compared to the same periods last year, transported volumes of gas on our Texas intrastate pipelines decreased primarily due to less third-party transportation and decreased gas production from the Haynesville area. Transported volumes reported above exclude volumes attributable to purchases and sales of gas for our pipelines’ own accounts and the optimization of any unused capacity.

Segment Margin. The components of our intrastate transportation and storage segment margin were as follows:

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment increased due to the net impact of the following:

•an increase of $100 million in realized natural gas sales and other primarily due to higher pipeline optimization from physical sales; and

•a decrease of $10 million in operating expenses primarily due to a change related to fuel consumption that is offset in cost of products sold in 2024; partially offset by

•a decrease of $13 million in storage margin primarily due to the timing of financial gains;

•a decrease of $11 million in retained fuel margin primarily due to a change related to fuel consumption that is offset in operating expenses in 2024; and

•a decrease of $4 million in transportation fees primarily due to a contract expiration on our Louisiana system.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our intrastate transportation and storage segment increased due to the net impact of the following:

•an increase of $252 million in realized natural gas sales and other primarily due to higher pipeline optimization from physical sales and settled derivatives;

•a decrease of $27 million in operating expenses primarily due to a change related to fuel consumption that is offset in cost of products sold in 2024 and lower compressor rental expense; and

•an increase of $15 million in transportation fees primarily due to the recovery of certain fees earned in a prior period on our Texas system; partially offset by

•a decrease of $45 million in storage margin primarily due to lower storage optimization from settled derivatives; and

•a decrease of $24 million in retained fuel margin primarily due to a change related to fuel consumption that is offset in operating expenses in 2024.

Interstate Transportation and Storage

Volumes. For the three and nine months ended September 30, 2024 compared to the same periods last year, transported volumes increased primarily due to more capacity sold and higher utilization on our Panhandle, Trunkline and Gulf Run systems due to increased demand.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our interstate transportation and storage segment decreased due to the net impact of the following:

•an increase of $25 million in operating expenses primarily due to a $10 million one-time benefit recorded in the third quarter of 2023 which reduced operating expense, a $6 million increase in maintenance project costs, a $3 million increase from the revaluation of system gas and an aggregate increase of $5 million in employee costs and office expense;

•an increase of $4 million in selling, general and administrative expenses primarily due to higher professional fees and higher overhead costs; and

•a decrease of $4 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to lower revenue on our Midcontinent Express Pipeline joint venture; partially offset by

•an increase of $3 million in segment margin primarily due to a $23 million increase resulting from a rate adjustment in 2023 related to the conclusion of a rate case on our Panhandle system, partially offset by an $11 million decrease due to lower interruptible utilization, a $7 million decrease in transportation revenue from several of our interstate pipeline systems due to lower contracted volumes at lower rates and a $5 million decrease due to lower market prices on the sale of operational gas.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our interstate transportation and storage segment decreased due to the net impact of the following:

•a decrease of $60 million in segment margin primarily due to a $36 million decrease due to lower market prices on the sale of operational gas, a $16 million decrease in interruptible utilization and a $9 million decrease in parking revenue;

•an increase of $49 million in operating expenses primarily due to a $32 million increase in maintenance project costs, a $12 million increase in employee related costs, a $6 million increase from the revaluation of system gas and an aggregate $8 million increase in transportation expense, outside services and office expense. These increases were partially offset by an aggregate $9 million decrease in ad valorem taxes, electricity and storage expenses;

•an increase of $10 million in selling, general and administrative expenses primarily due to higher professional fees, overhead and employee related costs; and

•a decrease of $13 million in Adjusted EBITDA related to unconsolidated affiliates primarily due to lower revenue on our Midcontinent Express Pipeline joint venture.

Midstream

Volumes. For the three and nine months ended September 30, 2024 compared to the same periods last year, gathered volumes increased primarily due to recently acquired assets and higher volumes in the Permian region. NGL production increased primarily due to recently acquired assets and increased Permian plant utilization.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment increased due to the net impact of the following:

•an increase of $254 million in segment margin primarily due to recently acquired assets and higher volumes in the Permian region; and

•an increase of $70 million in other income due to the recognition of proceeds from a business interruption claim; partially offset by

•an increase of $117 million in operating expenses primarily due to a $108 million increase related to recent acquisitions and assets placed in service and a $9 million increase in employee costs;

•a decrease of $16 million in segment margin due to lower natural gas prices; and

•an increase of $7 million in selling, general and administrative expenses primarily due to higher insurance expenses.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our midstream segment increased due to the net impact of the following:

•an increase of $458 million in segment margin primarily due to recently acquired assets and higher volumes in the Permian region;

•an increase of $70 million in other income due to the recognition of proceeds from a business interruption claim;

•a decrease of $8 million in selling, general and administrative expenses primarily due to one-time expenses in the prior period; and

•an increase of $4 million in Adjusted EBITDA related to unconsolidated affiliates due to recently acquired assets; partially offset by

•an increase of $165 million in operating expenses primarily due to a $159 million increase related to recent acquisitions and assets placed in service and a $22 million increase in employee costs, partially offset by an $8 million decrease in environmental reserves and a $6 million decrease in compressor rental expense; and

•a decrease of $21 million in segment margin due to lower natural gas prices of $52 million, partially offset by higher NGL prices of $31 million.

NGL and Refined Products Transportation and Services

Volumes. For the three and nine months ended September 30, 2024 compared to the same periods last year, NGL transportation volumes increased primarily due to higher volumes from the Permian region, on our Mariner East pipeline system and on our Gulf Coast export pipelines.

The increase in transportation volumes and the commissioning of our eighth fractionator in August 2023 also led to higher fractionated volumes at our Mont Belvieu NGL Complex.

Segment Margin. The components of our NGL and refined products transportation and services segment margin were as follows:

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment decreased due to the net impact of the following:

•a decrease of $70 million in marketing margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to $100 million in gains recorded in the third quarter of 2023 from the optimization of hedged NGL and refined product inventories compared to $30 million in gains recorded for the third quarter of 2024. This decrease also included a $2 million decrease in intrasegment margin which is fully offset within our transportation margin;

•a decrease of $12 million in fractionators and refinery services margin resulting from a $27 million increase due to higher volumes and a $2 million increase from our refinery services business, offset by a $41 million decrease in rates, primarily from our midstream segment due to lower gas prices and the restructuring of certain affiliate fractionation agreements;

•an increase of $8 million in operating expenses primarily due to a $6 million increase in employee costs, a $4 million increase in ad valorem taxes, a $4 million increase in outside services expenses and increases totaling $6 million from various other operating expenses. These increases were partially offset by an $11 million decrease in gas and power utility costs; and

•an increase of $9 million in selling, general and administrative expenses primarily due to increased costs from recently acquired assets; partially offset by

•an increase of $25 million in terminal services margin primarily due to a $15 million increase from higher export volumes loaded at our Nederland Terminal, an $8 million increase from our Marcus Hook Terminal due to higher throughput and contractual rate escalations and a $3 million increase due to higher throughput and storage at our refined product terminals; and

•an increase of $8 million in transportation margin primarily due to higher throughput and contractual rate escalations of $19 million on our Mariner East pipeline system and intrasegment charges of $7 million and $2 million which were fully offset within our fractionators and marketing margins, respectively. These increases were partially offset by decreased revenue on our Texas y-grade pipeline system, despite higher volumes, primarily due to the restructuring of certain affiliate transportation agreements.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our NGL and refined products transportation and services segment increased due to the net impact of the following:

•an increase of $138 million in transportation margin primarily due to higher throughput and contractual rate escalations of $61 million on our Mariner East pipeline system, $30 million on our Texas y-grade pipeline system, $22 million on our refined product pipelines and $21 million on our Mariner West pipeline, as well as an $8 million increase from higher exported volumes feeding into our Nederland Terminal and intrasegment charges of $4 million and $10 million which are fully offset within our fractionation and marketing margins, respectively;

•an increase of $57 million in fractionators and refinery services margin primarily due to a $52 million increase resulting from higher throughput as our eighth fractionator was placed in service in August 2023 and an $8 million increase from our refinery services business. These increases were partially offset by a $4 million decrease in intrasegment margin which was fully offset within our transportation margin;

•an increase of $54 million in terminal services margin primarily due to a $24 million increase from higher export volumes loaded at our Nederland Terminal, a $21 million increase from our Marcus Hook Terminal due to higher throughput and contractual rate escalations and a $9 million increase from higher throughput and storage at our refined product terminals;

•an increase of $11 million in marketing margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to an increase to intrasegment margin of $10 million which is fully offset within our transportation margin; and

•an increase of $6 million in Adjusted EBITDA related to unconsolidated affiliates; partially offset by

•an increase of $36 million in operating expenses primarily due to an $18 million increase in employee costs, a $12 million increase resulting from the timing of project related expenses, a $7 million increase in outside services expenses, a $6 million increase in ad valorem taxes and increases totaling $4 million from various other operating expenses. These increases were partially offset by an $11 million decrease in gas and power utility costs; and

•an increase of $12 million in selling, general and administrative expenses primarily due to increased costs from recently acquired assets.

Crude Oil Transportation and Services

Volumes. For the three and nine months ended September 30, 2024 compared to the same periods last year, crude oil transportation volumes were higher due to continued growth on our gathering systems and contributions from recently acquired assets.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our crude oil transportation and services segment increased due to the net impact of the following:

•an increase of $121 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to a $150 million increase from recently acquired assets and contributions from the recently formed Permian joint venture with Sunoco LP; this increase was partially offset by a $21 million decrease from our crude oil acquisition and marketing business primarily due to lower refined product prices and an $11 million decrease from existing pipeline assets; partially offset by

•an increase of $48 million in operating expenses from recently acquired and contributed assets, as well as increases in ad valorem taxes, employee costs, outside services and various volume-driven expenses; and

•an increase of $10 million in selling, general and administrative expenses primarily due to an increase of $7 million from recently acquired assets and related corporate allocations, and higher employee expenses.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our crude oil transportation and services segment increased due to the net impact of the following:

•an increase of $649 million in segment margin (excluding unrealized gains and losses on commodity risk management activities) primarily due to a $442 million increase from recently acquired assets and contributions from the recently formed Permian joint venture with Sunoco LP, a $169 million increase in transportation revenues from existing pipeline assets and a $32 million increase in our crude oil acquisition and marketing business from more favorable market conditions; and

•an increase of $10 million in Adjusted EBITDA related to unconsolidated affiliates due to recently acquired assets and higher volumes on our White Cliffs crude pipeline; partially offset by

•an increase of $127 million in operating expenses primarily due to a $77 million increase from recently acquired and contributed assets, a $14 million increase in outside services, a $12 million increase in employee expenses and a $9 million increase in ad valorem taxes, as well as various increases in volume-driven expenses; and

•an increase of $21 million in selling, general and administrative expenses primarily due to a $16 million increase from recently acquired assets and related corporate allocations, and higher employee expenses.

Investment in Sunoco LP

The Investment in Sunoco LP segment reflects the consolidated results of Sunoco LP.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our investment in Sunoco LP segment increased due to the net impact of the following:

•an increase in segment margin (excluding unrealized gains and losses on commodity risk management activities and inventory valuation adjustments) of $237 million primarily related to the acquisitions of NuStar and Zenith European terminals; and

•a $45 million increase in Adjusted EBITDA related to unconsolidated affiliates due to the formation of the Permian joint venture; partially offset by

•a $58 million increase in operating expenses and a $24 million increase in selling, general and administrative expenses primarily related to the acquisitions of NuStar and Zenith European terminals.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our investment in Sunoco LP segment increased due to the net impact of the following:

•an increase in segment margin (excluding unrealized gains and losses on commodity risk management activities and inventory valuation adjustments) of $488 million primarily related to the acquisitions of NuStar and Zenith European terminals; and

•a $45 million increase in Adjusted EBITDA related to unconsolidated affiliates due to the formation of the Permian joint venture; partially offset by

•a $113 million increase in operating expenses and a $133 million increase in selling, general and administrative expenses primarily related to the acquisitions of NuStar and Zenith European terminals.

Investment in USAC

The Investment in USAC segment reflects the consolidated results of USAC.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our investment in USAC segment increased due to the net impact of the following:

•an increase of $20 million in segment margin primarily due to higher revenue-generating horsepower as a result of increased demand for compression services, higher market-based rates on newly deployed and redeployed compression units and higher average rates on existing customer contracts; partially offset by

•an increase of $4 million in operating expenses primarily due to an increase in employee costs associated with increased revenue-generating horsepower.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our investment in USAC segment increased due to the net impact of the following:

•an increase of $78 million in segment margin primarily due to higher revenue-generating horsepower as a result of increased demand for compression services, higher market-based rates on newly deployed and redeployed compression units and higher average rates on existing customer contracts; partially offset by

•an increase of $18 million in operating expenses primarily due to an increase in employee costs associated with increased revenue-generating horsepower; and

•an increase of $5 million in selling, general and administrative expenses primarily due to an increase in professional fees.

All Other

Amounts reflected in our all other segment primarily include:

•our natural gas marketing operations;

•our wholly owned natural gas compression operations; and

•our natural resources business.

Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our all other segment decreased due to the net impact of the following:

•a decrease of $49 million related to intersegment eliminations primarily driven by the formation of the Permian joint venture, which is consolidated in our crude oil transportation and services segment and also reflected as an unconsolidated affiliate in our investment in Sunoco LP segment; partially offset by

•an increase of $11 million in our natural gas marketing business due to higher gains from gas trading and storage positions; and

•an increase of $7 million from our compressor packaging business.

Segment Adjusted EBITDA. For the nine months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our all other segment decreased due to the net impact of the following:

•a decrease of $45 million related to intersegment eliminations primarily driven by the formation of the Permian joint venture, which is consolidated in our crude oil transportation and services segment and also reflected as an unconsolidated affiliate in our investment in Sunoco LP segment; partially offset by

•an increase of $29 million in our natural gas marketing business due to higher gains from gas trading and storage positions.