Energy Transfer (ET) AI Stock Analysis

• Market Cap: $59.39B
• Dividend Yield: 7.54%
• Average Volume (3M): 11.78M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.60
• Revenue Growth: -3.65%
• EPS Growth: 9.69%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.32
• Shares Outstanding: 3,432,681,600
• 10 Day Avg. Volume: 10,431,588
• 30 Day Avg. Volume: 11,782,521
• PEG Ratio: 0.80
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 9.06
• Enterprise Value/Market Cap: 2.33
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 9.39
• Enterprise Value/Ebitda: 9.13
• 1Y Price Target: $22.68
• Price Target Upside: 31.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $19.00 ▲(9.83% Upside)

Energy Transfer's overall stock score reflects a balance of strong dividend yield and strategic growth initiatives against challenges in revenue growth and high leverage. The company's technical indicators suggest mixed market sentiment, while the earnings call provides cautious optimism with strategic projects offset by segment declines.

Positive Factors

Strategic Growth Initiatives

The Desert Southwest pipeline project is a significant expansion that enhances Energy Transfer's infrastructure capabilities, supporting long-term growth and increased capacity in key regions.

Record-Setting Volume Metrics

Record-setting volumes in various segments indicate robust demand and operational efficiency, contributing to sustained revenue and market position.

Permian Basin Growth

Growth in the Permian Basin, driven by processing plant upgrades, enhances Energy Transfer's competitive edge and revenue potential in a key energy-producing region.

Negative Factors

High Leverage

Significant reliance on debt poses risks to financial stability and limits flexibility, potentially impacting future investment capabilities.

Decline in Free Cash Flow Growth

Decreasing free cash flow growth may constrain future investments and operational flexibility, affecting long-term strategic initiatives.

Revenue Growth Challenges

Negative revenue growth indicates potential market challenges and competitive pressures, which could hinder long-term profitability and expansion.

Energy Transfer Business Overview & Revenue Model

Company Description

Energy Transfer LP provides energy-related services. The company owns and operates approximately 11,600 miles of natural gas transportation pipeline, and three natural gas storage facilities in Texas and two natural gas storage facilities located in the state of Texas and Oklahoma; and 19,830 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. The company owns and operates natural gas gathering and natural gas liquid (NGL) pipeline, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and a natural gas gathering system in Ohio, as well as transport and supplies water to natural gas producer in Pennsylvania. It owns approximately 5,215 miles of NGL pipeline; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminal with an aggregate storage capacity of approximately 17 MMBbls. The company provides crude oil transportation, terminalling, acquisition, and marketing activities; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum product. It offers natural gas compression service; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management service; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 1996 and is headquartered in Dallas, Texas.

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's financial performance is stable with strong operational efficiency and profitability margins. However, challenges include declining revenue growth and high leverage. The balance sheet shows significant reliance on debt, and recent declines in free cash flow growth warrant attention.

Income Statement

Energy Transfer's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 18% over the TTM, which is healthy for the industry. However, the net profit margin has slightly decreased to 5.81%, indicating some pressure on profitability. Revenue growth has been negative recently, with a decline of 1.81% in the TTM, which could be a concern if the trend continues. The EBIT and EBITDA margins remain strong, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.35, which is a reduction from previous years but still indicates significant leverage. Return on equity is solid at 12.38%, suggesting effective use of equity to generate profits. The equity ratio stands at 36.42%, showing a reasonable level of equity financing relative to total assets. Overall, the balance sheet shows stability but with a notable reliance on debt.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by 5.88% in the TTM, which could impact future investments. The operating cash flow to net income ratio is strong at 0.94, suggesting good cash generation relative to net income. The free cash flow to net income ratio is 0.51, indicating that a significant portion of net income is converted into free cash flow, though this has decreased from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.58B	82.67B	78.59B	89.88B	67.42B	38.95B
Gross Profit	14.74B	15.69B	13.80B	13.31B	13.45B	10.25B
EBITDA	15.16B	15.40B	12.56B	12.29B	12.63B	9.54B
Net Income	4.68B	4.81B	3.94B	4.76B	5.47B	-648.00M
Balance Sheet
Total Assets	125.02B	125.38B	113.70B	105.64B	105.96B	95.14B
Cash, Cash Equivalents and Short-Term Investments	242.00M	312.00M	161.00M	257.00M	336.00M	367.00M
Total Debt	61.50B	60.56B	53.22B	49.11B	50.57B	52.33B
Total Liabilities	79.17B	78.95B	68.98B	64.49B	65.83B	62.99B
Stockholders Equity	45.53B	35.12B	36.68B	33.03B	31.30B	18.54B
Cash Flow
Free Cash Flow	5.70B	7.34B	6.42B	5.67B	8.34B	2.23B
Operating Cash Flow	11.14B	11.51B	9.55B	9.05B	11.16B	7.36B
Investing Cash Flow	-7.65B	-5.90B	-4.33B	-4.02B	-2.77B	-4.90B
Financing Cash Flow	-3.90B	-5.45B	-5.33B	-5.11B	-8.42B	-2.39B

Energy Transfer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ET, the sentiment is Negative. The current price of 17.3 is below the 20-day moving average (MA) of 17.50, below the 50-day MA of 17.40, and below the 200-day MA of 17.71, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	51.29B	11.94	31.19%	7.60%	4.67%	2.07%
EPD	74 Outperform	68.62B	11.84	20.20%	6.75%	-0.55%	2.14%
OKE	73 Outperform	45.06B	13.95	14.17%	5.70%	47.00%	11.86%
ET	71 Outperform	$59.39B	13.46	13.73%	7.54%	-3.65%	9.69%
KMI	70 Outperform	60.93B	22.50	8.85%	4.23%	3.95%	11.32%
WMB	68 Neutral	73.40B	30.33	19.53%	3.29%	10.57%	-14.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.

The most recent analyst rating on (ET) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.