Energy Transfer (ET) AI Stock Analysis

• Market Cap: $59.32B
• Dividend Yield: 7.41%
• Average Volume (3M): 12.91M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.59
• Revenue Growth: 1.04%
• EPS Growth: 22.31%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.32
• Shares Outstanding: 3,431,778,000
• 10 Day Avg. Volume: 15,602,988
• 30 Day Avg. Volume: 12,909,586
• 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: 1.69
• Enterprise Value/Gross Profit: 8.74
• Enterprise Value/Ebitda: 8.89
• 1Y Price Target: $23.11
• Price Target Upside: 33.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $20.00 ▲(15.74% Upside)

Energy Transfer's overall stock score reflects solid financial health and attractive dividend yield, supported by strong cash flow and strategic project developments. However, high leverage and adjusted guidance due to segment challenges temper the outlook. Technical indicators suggest a neutral market sentiment, aligning with moderate growth expectations.

Positive Factors

Growth Opportunities

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

New Project Initiatives

Energy Transfer's new pipeline project is viewed positively as gas is the highest quality asset type in their portfolio and they trade at a lower multiple than their competitor KMI.

Negative Factors

Earnings Performance

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

Profitability Concerns

Energy Transfer's willingness to take a lower return than KMI might suggest a potential compromise on profitability.

Energy Transfer Business Overview & Revenue Model

Company Description

Energy Transfer LP (ET) is a leading American energy company engaged in the transportation, storage, and terminalling of crude oil, natural gas, and refined products. The company operates an extensive network of pipelines and facilities that spans across the United States, connecting major production areas with key consumption markets. Energy Transfer's core services include natural gas transportation and storage, crude oil transportation and storage, and refined product transportation. Additionally, the company owns and operates a diverse portfolio of assets, including natural gas liquids (NGL) fractionation and distribution facilities, interstate and intrastate natural gas pipelines, and crude oil terminals.

How the Company Makes Money

Energy Transfer generates revenue primarily through the fees it charges for the transportation and storage of natural gas, crude oil, and refined products. The company operates under long-term, fee-based contracts, providing stable and predictable cash flows. Key revenue streams include intrastate and interstate natural gas transportation services, crude oil and refined product transportation services, and the sale and distribution of natural gas liquids. Energy Transfer's earnings are also supported by its ownership interests in several joint ventures and partnerships that expand its operational reach and market access. Additionally, the company benefits from strategic acquisitions and asset optimizations that enhance its infrastructure capabilities and service offerings.

Energy Transfer Financial Statement Overview

Summary

Energy Transfer demonstrates strong profitability and cash flow generation, with a solid operating cash flow to net income ratio. However, the high debt-to-equity ratio and sluggish revenue growth highlight areas for improvement in financial stability and expansion.

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	15.84B	15.53B	13.66B	13.48B	13.21B	9.79B
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	140.00M
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: Negative
• Last Price: 17.28
• 50DMA: Negative
• 100DMA: Positive
• 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 17.28 is below the 20-day moving average (MA) of 17.34, below the 50-day MA of 17.44, and below the 200-day MA of 17.55, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of -11.48 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
EPD	79 Outperform	$68.19B	11.75	20.43%	6.81%	-0.30%	―
MPLX	78 Outperform	$51.37B	11.96	31.38%	7.43%	5.53%	11.29%
ET	75 Outperform	$59.32B	13.34	13.73%	7.41%	1.04%	22.31%
KMI	70 Outperform	$59.75B	22.06	8.86%	4.31%	3.95%	11.32%
OKE	69 Neutral	$46.89B	14.52	16.05%	5.48%	47.00%	11.86%
WMB	68 Neutral	$70.69B	29.21	19.64%	3.37%	10.57%	-14.22%
Sector *	66 Neutral	$15.04B	9.28	7.36%	5.56%	3.96%	-72.38%

Energy Transfer Corporate Events

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.

The most recent analyst rating on (ET) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.

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.

The most recent analyst rating on (ET) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.

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.

The most recent analyst rating on (ET) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Energy Transfer stock, see the ET Stock Forecast page.