Energy Transfer (ET) AI Stock Analysis

• Market Cap: $61.66B
• Dividend Yield: 8.04%
• Average Volume (3M): 13.83M
• Price to Earnings (P/E): 14.4
• 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: 15,019,849
• 30 Day Avg. Volume: 13,827,016
• 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: 2.00
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 7.53
• Enterprise Value/Ebitda: 8.10
• 1Y Price Target: $20.77
• Price Target Upside: 15.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $19.00 ▲(5.85% Upside)

The score is driven primarily by solid underlying financial performance with strong operating margins, supported by favorable technical trend signals (price above major moving averages, positive MACD) and attractive income/value characteristics (7.67% dividend yield, moderate P/E). The main offsets are weak near-term growth (negative revenue and free cash flow growth) and mixed earnings-call implications from lowered 2025 guidance and softer EBITDA despite strong volumes.

Positive Factors

Stable fee-based pipeline network with long-term contracts

Energy Transfer's vast transport and storage franchise plus fully contracted pipeline capacity provide predictable fee revenue. Long-term commitments and major producer agreements reduce commodity exposure and support durable cash flow stability, underpinning multi-year distribution and reinvestment plans.

Healthy operating margins and cash generation

Robust EBIT and EBITDA margins reflect efficient, scale-based operations and fee-heavy revenues. Strong operating profitability supports recurring cash generation, enabling distributions and funding of growth projects while providing resilience against volume or commodity swings over the next several quarters.

Large, disciplined growth program focused on natural gas

A sizable, targeted 2026 capex plan focused on contracted natural gas and NGL projects, with expected mid‑teen returns, creates a visible organic growth runway. Prioritizing long-term contracted assets and maintaining leverage targets indicates disciplined allocation to durable, cash-generative projects.

Negative Factors

Negative revenue and free cash flow trends

Persisting declines in revenue and negative free cash flow growth signal weakening top-line momentum and less cash available for reinvestment or debt reduction. If sustained, these trends can constrain flexibility to fund projects, keep distributions, or meet leverage targets over the medium term.

Elevated leverage objective amid heavy investment cycle

Maintaining a 4.0–4.5x EBITDA leverage target while deploying $5B+ of growth capital preserves financial policy but keeps balance sheet relatively stretched. Higher leverage increases refinancing and rating risk and limits capital flexibility if cash flow or project returns underperform expectations.

Recent decline in adjusted EBITDA and softened guidance

A year-over-year EBITDA decline and guidance revision reduce near-term earnings visibility and raise execution risk for project ramp-ups. Persistent softness could pressure cash available for distributions and increase reliance on external financing for growth, affecting multi-quarter financial stability.

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

Healthy operating profitability (EBIT margin 12.08%, EBITDA margin 19.05%) supports stability, but revenue (-1.02%) and free cash flow growth (-7.72%) are negative, and leverage is moderate (debt-to-equity 1.41), tempering the score.

Income Statement

Energy Transfer shows a stable gross profit margin of 20.47% in TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.66%, reflecting some pressure on profitability. The revenue growth rate is negative at -1.02%, suggesting a decline in sales compared to the previous period. Despite this, the EBIT and EBITDA margins remain healthy at 12.08% and 19.05%, respectively, showcasing strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.41, indicating moderate leverage, which is typical in the industry but requires monitoring. Return on equity is solid at 11.20%, reflecting effective use of equity to generate profits. The equity ratio stands at 26.81%, suggesting a balanced capital structure with a reasonable level of equity financing.

Cash Flow

Operating cash flow is robust, but the free cash flow growth rate is negative at -7.72%, indicating a decline in cash available for reinvestment. The operating cash flow to net income ratio is 0.87, showing strong cash generation relative to net income. The free cash flow to net income ratio is 0.49, suggesting that a significant portion of earnings is converted into free cash flow.

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: Positive
• Last Price: 17.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 17.95 is above the 20-day moving average (MA) of 17.14, above the 50-day MA of 16.80, and above the 200-day MA of 16.80, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 70.91 is Negative, neither overbought nor oversold. The STOCH value of 69.44 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
OKE	82 Outperform	$48.77B	14.25	17.14%	5.61%	58.76%	13.74%
MPLX	81 Outperform	$55.70B	11.61	34.35%	7.31%	5.19%	11.09%
KMI	78 Outperform	$65.27B	21.34	9.87%	4.27%	8.54%	7.22%
ET	73 Outperform	$61.66B	14.38	13.09%	8.04%	-4.67%	-8.06%
EPD	73 Outperform	$71.50B	12.51	19.98%	6.72%	-6.46%	-0.87%
WMB	71 Outperform	$78.51B	33.26	19.00%	3.35%	11.48%	-17.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Energy Transfer Corporate Events

Energy Transfer Announces $3 Billion Senior Notes Offering

On January 12, 2026, Energy Transfer LP priced a $3.0 billion public offering of senior notes in three tranches—$1.0 billion of 4.550% notes due 2031, $1.0 billion of 5.350% notes due 2036 and $1.0 billion of 6.300% notes due 2056—at slight discounts to face value, with settlement expected on January 27, 2026, subject to customary closing conditions. The company expects to receive approximately $2.97 billion in net proceeds before expenses, which it plans to use primarily to refinance existing indebtedness, including commercial paper and borrowings under its revolving credit facility, and for general partnership purposes, a move that should strengthen its balance sheet and may lower its near- and medium-term funding costs while channeling proceeds in part to lending affiliates of the underwriting banks through debt repayment.

The most recent analyst rating on (ET) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.

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.