Energy Transfer (ET) AI Stock Analysis

• Market Cap: $60.83B
• Dividend Yield: 7.36%
• Average Volume (3M): 13.89M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.61
• Revenue Growth: -3.65%
• EPS Growth: 9.69%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 68
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.32
• Shares Outstanding: 3,432,681,600
• 10 Day Avg. Volume: 12,160,790
• 30 Day Avg. Volume: 13,885,252
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 8.68
• Enterprise Value/Ebitda: 8.89
• 1Y Price Target: $22.81
• Price Target Upside: 28.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $19.50 ▲(10.05% Upside)

Energy Transfer's overall stock score is driven by strong financial performance and attractive valuation, which are offset by neutral technical indicators and mixed earnings call sentiment. The company's robust dividend yield and reasonable P/E ratio enhance its attractiveness, while strategic growth initiatives provide long-term potential despite current operational challenges.

Positive Factors

Capital Expenditures

The positive impact from new projects and high return capital expenditures outweighs near-term estimates.

Project Opportunities

Management expects to make a significant data center and power generation announcement soon, indicating potential growth opportunities.

Negative Factors

Earnings Performance

Earnings disappointed with EBITDA down, implying a significant downside to consensus.

Volume Growth

The analyst is lowering volume growth forecasts due to slower expected growth in the midstream and crude oil segments.

Energy Transfer Business Overview & Revenue Model

Company Description

Energy Transfer LP (ET) is a publicly traded master limited partnership headquartered in Dallas, Texas. The company operates in the energy sector, primarily focusing on the transportation and storage of natural gas, crude oil, and natural gas liquids. Energy Transfer owns and operates an extensive network of pipelines, storage facilities, and processing plants, providing critical infrastructure and services to energy producers and consumers across the United States.

How the Company Makes Money

Energy Transfer generates revenue primarily through the transportation and storage of hydrocarbons. The company earns fees from transporting natural gas, crude oil, and NGLs through its pipeline systems, which are charged per unit of volume moved. Additionally, it derives income from its storage services, where customers pay for the capacity to store their products. Energy Transfer also engages in processing activities, which involve the separation of natural gas liquids from raw natural gas, earning further income through processing fees. The company benefits from long-term contracts with its customers, providing stable revenue streams. Moreover, strategic partnerships and joint ventures with other energy companies enhance its operational capabilities and market reach, contributing significantly to its earnings. Overall, a combination of fee-based revenue and diversified service offerings positions Energy Transfer as a key player in the energy infrastructure sector.

Energy Transfer Financial Statement Overview

Summary

Energy Transfer demonstrates strong profitability with consistent EBIT and EBITDA margins. The company maintains a robust cash flow, indicating operational efficiency. However, a high debt-to-equity ratio and sluggish revenue growth highlight the need for improved cost management and revenue generation.

Income Statement

Energy Transfer demonstrates strong profitability with a consistent EBIT and EBITDA margin, reflecting efficient operations. The TTM gross profit margin is approximately 19.3%, indicating a healthy level of profitability. However, the net profit margin is around 6.0%, suggesting room for improvement in cost management or revenue generation. Revenue growth has been sluggish, with a TTM decline of approximately 0.7% compared to the previous annual period, highlighting challenges in increasing sales.

Balance Sheet

The company maintains a substantial debt-to-equity ratio of 1.72, signaling significant leverage which could pose financial risks if not managed properly. The return on equity (ROE) is a respectable 13.9%, indicating effective use of equity to generate profits. With an equity ratio of about 27.9%, the company shows a stable financial foundation but highlights the need for careful debt management to ensure financial flexibility.

Cash Flow

Energy Transfer's cash flow performance is robust, with a strong operating cash flow to net income ratio of 2.18, indicating excellent cash conversion from profits. The free cash flow growth rate is negative at -17.5% due to increased capital expenditures, suggesting potential future growth investments. The free cash flow to net income ratio of 1.24 demonstrates solid cash generation relative to profits, supporting liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.06B	82.67B	78.59B	89.88B	67.42B	38.95B
Gross Profit	15.95B	15.69B	13.80B	13.31B	13.45B	10.25B
EBITDA	15.57B	15.40B	12.56B	12.29B	12.63B	9.54B
Net Income	4.90B	4.81B	3.94B	4.76B	5.47B	-648.00M
Balance Sheet
Total Assets	126.42B	125.38B	113.70B	105.64B	105.96B	95.14B
Cash, Cash Equivalents and Short-Term Investments	453.00M	312.00M	161.00M	257.00M	336.00M	367.00M
Total Debt	60.61B	60.56B	53.22B	49.11B	50.57B	52.33B
Total Liabilities	79.84B	78.95B	68.98B	64.49B	65.83B	62.99B
Stockholders Equity	35.32B	35.12B	36.68B	33.03B	31.30B	18.54B
Cash Flow
Free Cash Flow	6.06B	7.34B	6.42B	5.67B	8.34B	2.23B
Operating Cash Flow	10.65B	11.51B	9.55B	9.05B	11.16B	7.36B
Investing Cash Flow	-5.91B	-5.90B	-4.33B	-4.02B	-2.77B	-4.90B
Financing Cash Flow	-6.24B	-5.45B	-5.33B	-5.11B	-8.42B	-2.39B

Energy Transfer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ET, the sentiment is Positive. The current price of 17.72 is above the 20-day moving average (MA) of 17.43, above the 50-day MA of 17.41, and above the 200-day MA of 17.70, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ET.

Energy Transfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$51.84B	12.07	31.38%	7.52%	4.67%	2.07%
EPD	80 Outperform	$69.59B	12.01	20.43%	6.66%	-0.55%	2.14%
ET	75 Outperform	$60.83B	13.63	13.73%	7.36%	-3.65%	9.69%
OKE	73 Outperform	$48.10B	14.79	16.05%	5.34%	47.00%	11.86%
KMI	70 Outperform	$59.95B	22.16	8.86%	4.30%	3.95%	11.32%
WMB	70 Outperform	$70.68B	29.20	19.64%	3.37%	10.57%	-14.22%
Sector *	65 Neutral	$15.51B	7.30	2.96%	5.23%	4.26%	-62.58%

Energy Transfer Corporate Events

Energy Transfer Executes Supplemental Indentures with Trustee

Energy Transfer LP, a prominent player in the energy sector, has announced the execution of two supplemental indentures dated August 25, 2025, with U.S. Bank Trust Company, National Association, as trustee. These agreements are part of the company’s strategic financial management, potentially impacting its financial structuring and stakeholder relations.

Energy Transfer Announces $2 Billion Notes Offering

On August 11, 2025, Energy Transfer LP announced the pricing of its public offering of $2 billion in junior subordinated notes, which includes $1.2 billion of Series 2025A notes and $800 million of Series 2025B notes, both due in 2056. The proceeds from this offering, expected to close on August 25, 2025, will be used to repay borrowings under the company’s revolving credit facility and for general partnership purposes, potentially impacting the company’s financial flexibility and debt management strategy.

Energy Transfer to Present at Citi’s 2025 Conference

Energy Transfer LP announced that its management will participate in informational sessions with investors and analysts at Citi’s 2025 Natural Resources Conference from August 12-14 in Las Vegas. During these sessions, the company plans to provide an overview of its business segments and updates on growth projects, which could impact its operational strategy and stakeholder engagement.

Energy Transfer Increases Quarterly Cash Distribution

On July 24, 2025, Energy Transfer LP announced an increase in its quarterly cash distribution to $0.33 per common unit for the second quarter ended June 30, 2025, marking a more than 3% increase compared to the same quarter in 2024. This distribution will be paid on August 19, 2025, to unitholders of record as of August 8, 2025, reflecting the company’s ongoing commitment to returning value to its stakeholders.

Energy Transfer Sees Export License Requirement Rescinded

On July 2, 2025, the Bureau of Industry and Security (BIS) rescinded a previous requirement for Energy Transfer LP to obtain a license for exporting ethane to China or Chinese military end users. This change, effective immediately, impacts the company’s operations by potentially easing export processes and enhancing its market positioning in the natural gas liquids sector.

Energy Transfer Faces New Export Restrictions to China

On June 3, 2025, the Bureau of Industry and Security (BIS) notified Energy Transfer LP that a license is required for exporting ethane to China or Chinese military end users due to concerns about its use in China’s military-civil fusion strategy. Energy Transfer is evaluating the impact of these restrictions on its operations and market, as it may affect their ability to export ethane and potentially impact U.S. crude oil and natural gas production and prices.