Energy Transfer (ET) AI Stock Analysis

• Market Cap: $56.34B
• Dividend Yield: 7.94%
• Average Volume (3M): 14.63M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.62
• 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: 12,235,947
• 30 Day Avg. Volume: 14,630,944
• 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: 2.41
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 8.30
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $21.15
• Price Target Upside: 27.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): $80.45B

• Rating: 70 Outperform
• Price Target: $18.50 ▲(11.71% Upside)

Energy Transfer's overall stock score is driven by strong operational efficiency and a solid dividend yield, making it attractive to income-focused investors. However, challenges in maintaining growth momentum and mixed earnings call sentiment temper the outlook. The recent increase in cash distribution is a positive corporate event, supporting investor confidence.

Positive Factors

Operational Efficiency

Strong operational efficiency indicates effective cost management and robust core operations, supporting long-term profitability and competitive positioning.

Growth Opportunities

These expansions represent strategic investments that can enhance capacity and revenue, positioning the company for future growth in a rising demand environment.

Cash Distribution Increase

Increasing cash distributions reflects strong cash flow and financial health, boosting investor confidence and supporting long-term shareholder value.

Negative Factors

Negative Revenue Growth

Declining revenue growth can indicate market challenges or competitive pressures, potentially impacting long-term financial performance and strategic positioning.

Decreased EBITDA

A decrease in EBITDA suggests reduced profitability and operational challenges, which may affect the company's ability to invest in growth and maintain margins.

Guidance Revision

Revising guidance downward indicates potential difficulties in achieving financial targets, which could affect investor confidence and strategic planning.

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: Negative
• Last Price: 16.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 16.56 is below the 20-day moving average (MA) of 16.68, above the 50-day MA of 16.53, and below the 200-day MA of 16.84, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.00 is Positive, 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
OKE	82 Outperform	$46.32B	13.54	17.14%	5.60%	58.76%	13.74%
MPLX	81 Outperform	$55.45B	11.56	34.35%	7.19%	5.19%	11.09%
EPD	76 Outperform	$69.68B	12.19	19.98%	6.72%	-6.46%	-0.87%
WMB	76 Outperform	$74.40B	31.52	19.00%	3.34%	11.48%	-17.82%
ET	70 Outperform	$56.34B	13.14	13.09%	7.94%	-4.67%	-8.06%
KMI	68 Neutral	$59.16B	21.80	8.87%	4.36%	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 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.