Energy Transfer (ET) AI Stock Analysis

• Market Cap: $55.79B
• Dividend Yield: 8.04%
• Average Volume (3M): 12.30M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.60
• Revenue Growth: -4.67%
• EPS Growth: -8.06%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.28
• Shares Outstanding: 3,433,387,000
• 10 Day Avg. Volume: 10,526,533
• 30 Day Avg. Volume: 12,298,054
• 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: 2.43
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 8.30
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $20.95
• Price Target Upside: 26.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $18.00 ▲(8.96% Upside)

The score is driven primarily by solid financial stability and operating efficiency but held back by weak growth signals (negative revenue and free-cash-flow growth). Valuation and income are supportive (moderate P/E and high dividend yield), while technical indicators are neutral-to-soft with the stock trading below major moving averages. The latest earnings call and recent events are mixed: near-term guidance was trimmed, but contracted project momentum and the 2026 EBITDA outlook provide a constructive longer-term setup.

Positive Factors

Nationwide pipeline footprint & contracted demand

Energy Transfer’s coast-to-coast gathering and transportation franchise, backed by long-term customer commitments, creates durable fee-based cash flows and lowers volume volatility. This scale and contract profile supports predictable revenue generation and underpins distribution sustainability over multiple years.

Strong operating margins and return on equity

Healthy EBIT and EBITDA margins alongside an ~11% ROE indicate efficient operations and disciplined capital deployment. These structural profitability metrics provide a buffer through commodity cycles, supporting internal cash generation for maintenance, growth capex, and distributions over the medium term.

Material contracted growth projects (Desert Southwest, Hugh Brinson)

A pipeline slate of largely contracted projects increases future EBITDA visibility as assets come online. Fully contracted segments like Desert Southwest and other expansions should drive multi-year volume and fee growth, supporting mid-teens targeted project returns and extending the firm’s structural cash generation runway.

Negative Factors

Negative revenue and free cash flow trends

Declining revenues and shrinking free cash flow signal weakening organic cash conversion that can erode capacity to fund growth and distributions internally. Persisting negative FCF trends force greater reliance on external financing or asset sales, increasing execution and refinancing risk over the medium term.

Guidance shortfall and recent EBITDA decline

Missing guidance and a year-over-year dip in adjusted EBITDA point to near-term operational or volume pressures. Reduced EBITDA can slow deleveraging plans and compress available investment capacity, potentially forcing capital allocation trade-offs that affect long-term growth and distribution targets.

Elevated leverage target during heavy growth capex

Maintaining a 4.0–4.5x leverage target while executing multi-billion-dollar growth programs keeps balance sheet metrics elevated. This constrains financial flexibility, raises refinancing sensitivity, and heightens exposure to commodity or volume shocks during the multi-year buildout period.

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 through multiple key streams, primarily from the transportation and storage of hydrocarbons. The company earns fees for transporting natural gas and liquids through its extensive pipeline system, charging customers based on the volume of product transported. Additionally, it makes money from the storage of these products, collecting fees for the capacity used by customers. The company also engages in the sale of natural gas and related products, generating revenue from its retail marketing segment. Significant partnerships with major energy producers and shippers enhance its revenue-generating capabilities, while long-term contracts provide stability and predictability in cash flows. Furthermore, Energy Transfer benefits from the increasing demand for energy infrastructure and the need for reliable transportation solutions in the evolving energy landscape.

Energy Transfer Financial Statement Overview

Summary

Energy Transfer's financial statements show strong operational efficiency and profitability margins, but challenges in revenue growth and high leverage. The balance sheet indicates significant reliance on debt, which could pose risks if not managed carefully. Cash flow generation remains robust, although 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	79.76B	82.67B	78.59B	89.88B	67.42B	38.95B
Gross Profit	16.33B	15.69B	13.80B	13.31B	13.45B	10.25B
EBITDA	15.20B	15.40B	12.56B	12.29B	12.63B	9.54B
Net Income	4.52B	4.81B	3.94B	4.76B	5.47B	-648.00M
Balance Sheet
Total Assets	129.33B	125.38B	113.70B	105.64B	105.96B	95.14B
Cash, Cash Equivalents and Short-Term Investments	3.59B	312.00M	161.00M	257.00M	336.00M	367.00M
Total Debt	63.97B	60.56B	53.22B	49.11B	50.57B	52.33B
Total Liabilities	82.19B	78.95B	68.98B	64.49B	65.83B	62.99B
Stockholders Equity	34.68B	35.12B	36.68B	33.03B	31.30B	18.54B
Cash Flow
Free Cash Flow	5.26B	7.34B	6.42B	5.67B	8.34B	2.23B
Operating Cash Flow	10.84B	11.51B	9.55B	9.05B	11.16B	7.36B
Investing Cash Flow	-5.90B	-5.90B	-4.33B	-4.02B	-2.77B	-4.90B
Financing Cash Flow	-1.67B	-5.45B	-5.33B	-5.11B	-8.42B	-2.39B

Energy Transfer Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 16.52 is above the 20-day moving average (MA) of 16.42, below the 50-day MA of 16.55, and below the 200-day MA of 16.76, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ET.

Energy Transfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OKE	82 Outperform	$44.59B	13.03	17.14%	5.61%	58.76%	13.74%
MPLX	81 Outperform	$53.11B	11.07	34.35%	7.31%	5.19%	11.09%
WMB	76 Outperform	$72.66B	30.78	19.00%	3.35%	11.48%	-17.82%
EPD	73 Outperform	$68.64B	12.01	19.98%	6.72%	-6.46%	-0.87%
ET	68 Neutral	$55.79B	13.01	13.09%	8.04%	-4.67%	-8.06%
KMI	68 Neutral	$59.67B	21.99	8.87%	4.27%	8.54%	7.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Energy Transfer Corporate Events

Energy Transfer Issues 2026 Growth and Earnings Outlook

On January 6, 2026, Energy Transfer issued its 2026 outlook, projecting $5.0 billion to $5.5 billion in growth capital expenditures, directed mainly toward expanding its nationwide natural gas network through projects backed by long-term commitments and targeting mid-teens returns. The partnership expects consolidated Adjusted EBITDA of $17.3 billion to $17.7 billion in 2026, supported by a slate of major projects ramping up or coming online, including NGL expansions at Nederland Flexport and Lone Star Express, new Mustang Draw processing plants in the Permian Basin, the Hugh Brinson Pipeline Phase I, and gas pipelines serving Texas data centers, while aiming to maintain leverage of 4.0–4.5 times EBITDA and sustain 3–5 percent annual distribution growth after having returned more than half its annual cash flow to unitholders through distributions over the past three years.

The most recent analyst rating on (ET) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.

Energy Transfer Increases Quarterly Cash Distribution

On October 28, 2025, Energy Transfer LP announced an increase in its quarterly cash distribution to $0.3325 per common unit, marking a more than 3 percent rise compared to the third quarter of 2024. This distribution will be paid on November 19, 2025, to unitholders of record as of November 7, 2025. The announcement reflects positively on the company’s financial health and commitment to returning value to its stakeholders, potentially enhancing its market positioning and investor confidence.

The most recent analyst rating on (ET) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.