Energy Transfer Equity (ET)
NYSE:ET
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Energy Transfer
(NYSE:ET)
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Rating:67Neutral
Price Target:
$20.50
â–²(8.12% Upside)
Action:DowngradedDate:02/20/26
The score is primarily constrained by financial quality concerns—especially the 2025 cash flow print reported as zero and higher leverage—despite solid profitability. Support comes from a constructive trend in the technicals and a favorable income/valuation profile (7% yield, reasonable P/E), while the latest earnings call was broadly positive with raised 2026 EBITDA guidance and a strong contracted growth backlog tempered by DCF softness and commodity-basis/competition risks.
Positive Factors
Secured growth-capex program
Energy Transfer’s $5.0–$5.5B 2026 organic capex plan is concentrated on projects backed by long-term commitments and targeted mid‑teen returns. That markedly reduces execution revenue risk, supports predictable fee-based cash flows, and composes a durable growth runway into 2027–2029.
Negative Factors
Elevated leverage
Material debt build in 2025 pushed leverage meaningfully higher, reducing financial flexibility. Elevated balance-sheet leverage increases refinancing and interest-rate sensitivity, constrains capacity for opportunistic investments, and raises the risk profile if cash flows weaken or projects are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Secured growth-capex program
Energy Transfer’s $5.0–$5.5B 2026 organic capex plan is concentrated on projects backed by long-term commitments and targeted mid‑teen returns. That markedly reduces execution revenue risk, supports predictable fee-based cash flows, and composes a durable growth runway into 2027–2029.
Read all positive factors
Energy Transfer (ET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.78B
Dividend Yield8.04%
Average Volume (3M)14.73M
Price to Earnings (P/E)12.3
Beta (1Y)0.52
Revenue Growth-4.67%
EPS Growth-8.06%
CountryUS
Employees16,248
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.25
Shares Outstanding3,440,314,500
10 Day Avg. Volume15,398,942
30 Day Avg. Volume14,725,688
Financial Highlights & Ratios
PEG Ratio2.26
Price to Book (P/B)1.75
Price to Sales (P/S)0.73
P/FCF Ratio15.65
Enterprise Value/Market Cap2.07
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit7.56
Enterprise Value/Ebitda9.12
Forecast
1Y Price Target
$22.17Price Target Upside16.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.58
Revenue Forecast (FY)$102.50B
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 ...
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 customer...
Energy Transfer Key Performance Indicators (KPIs)
Any
NGL Transportation Volumes
Measures the volume of natural gas liquids transported, indicating the company's operational scale and efficiency in moving energy products, which impacts revenue and market positioning.
Measures the volume of natural gas liquids transported, indicating the company's operational scale and efficiency in moving energy products, which impacts revenue and market positioning.
Data provided by:
The Fly
The FlyEnergy Transfer Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational records, a partnership record in adjusted EBITDA (+3% YoY), strong project execution (Hugh Brinson progress, DSW upsizing, Permian expansions), robust commercial wins (data centers, power plant contracts), and higher 2026 EBITDA guidance. Near-term challenges include a modest YoY DCF decline, several one-time Q4 accounting and operational impacts (timing of hedge recognition, fog-related loading delays), transaction costs, regional pricing volatility (Waha) and competitive pressures in NGL fractionation/transport. Management signaled disciplined capital allocation, substantial backlog of contracted projects, and clear execution milestones. Overall, positives (record results, project momentum, raised guidance, major commercial contracts) materially outweigh the transitory and sectoral headwinds discussed.Positive Updates
Record Full-Year Adjusted EBITDA
Full-year 2025 adjusted EBITDA was nearly $16.0 billion vs $15.5 billion in 2024, up ~3%, a partnership record.
Negative Updates
Slight Decline in Full-Year DCF
Full-year 2025 DCF attributable to partners (as adjusted) was $8.2 billion vs $8.4 billion in 2024, a decline of ~$200 million (~2.4%).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Adjusted EBITDA
Full-year 2025 adjusted EBITDA was nearly $16.0 billion vs $15.5 billion in 2024, up ~3%, a partnership record.
Read all positive updates
Company Guidance
Energy Transfer updated 2026 guidance with adjusted EBITDA now expected at $17.45–$17.85 billion (up from $17.3–$17.7B) and 2026 organic growth capital guidance of $5.0–$5.5 billion (excluding SUN and USA Compression), with roughly 2/3 of that spend targeted to natural gas assets and about 1/4 to NGL and refined products; key project metrics include Desert Southwest upsized to 48" with capacity up to 2.3 Bcf/d and an estimated $5.6 billion full build cost (in service by Q4 2029), Hugh Brinson bidirectional capacity ~2.2 Bcf/d W→E and ~1.0 Bcf/d E→W (Phase 1 in service Q4 2026, Phase 2 Q1 2027), FGT Phase IX adding up to 550 MMcf/d (service Q4 2028) and the South Florida lateral (service Q1 2030) with ET shares up to $535M and $110M, Bethel storage expanded to >12 Bcf (late 2028), Mustang Draw I & II online Q2 and Q4 2026, a DAPL opportunity for ~250,000 bpd with FID expected by mid‑2026, Nederland/Marcus Hook expansions contracted and expected to generate mid‑teen returns, a maintained long‑term distribution growth target of 3–5% and leverage target of 4.0–4.5x EBITDA, and FY2025 baselines of adjusted EBITDA nearly $16B (FY), ~$4.2B (Q4), DCF attributable to partners as adjusted $8.2B (FY) and ~$2B (Q4), with ~$4.5B of organic growth capex spent in 2025 (ex‑SUN/USA Compression).Energy Transfer Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
35
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 82.63B | 82.67B | 78.59B | 89.88B | 67.42B |
| Gross Profit | 18.01B | 15.69B | 13.80B | 13.31B | 13.45B |
| EBITDA | 14.93B | 15.40B | 12.56B | 12.29B | 12.63B |
| Net Income | 4.90B | 4.81B | 3.94B | 4.76B | 5.47B |
Balance Sheet | |||||
| Total Assets | 141.74B | 125.38B | 113.70B | 105.64B | 105.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 321.00M | 227.00M | 267.00M | 346.00M |
| Total Debt | 71.61B | 60.56B | 53.22B | 49.11B | 50.57B |
| Total Liabilities | 92.48B | 78.95B | 68.98B | 64.49B | 65.83B |
| Stockholders Equity | 34.37B | 35.12B | 36.68B | 33.03B | 31.30B |
Cash Flow | |||||
| Free Cash Flow | 3.85B | 7.34B | 6.42B | 5.67B | 8.34B |
| Operating Cash Flow | 10.15B | 11.51B | 9.55B | 9.05B | 11.16B |
| Investing Cash Flow | -8.37B | -5.90B | -4.33B | -4.02B | -2.77B |
| Financing Cash Flow | -816.00M | -5.45B | -5.33B | -5.11B | -8.42B |
Energy Transfer Technical Analysis
Neutral
18.96
Price Trends
18.62
Positive
17.52
Positive
17.05
Positive
Market Momentum
0.18
Positive
51.23
Neutral
22.03
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 18.96 is below the 20-day moving average (MA) of 18.97, above the 50-day MA of 18.62, and above the 200-day MA of 17.05, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 22.03 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $56.08B | 11.07 | 34.93% | 7.31% | 5.19% | 11.09% | |
75 Outperform | $57.08B | 13.64 | 15.47% | 5.61% | 58.76% | 13.74% | |
73 Outperform | $83.03B | 12.07 | 19.84% | 6.72% | -6.46% | -0.87% | |
70 Outperform | $74.09B | 20.01 | 9.92% | 4.27% | 8.54% | 7.22% | |
67 Neutral | $65.78B | 12.28 | 14.09% | 8.04% | -4.67% | -8.06% | |
67 Neutral | $90.54B | 28.03 | 20.84% | 3.35% | 11.48% | -17.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
ET
Energy Transfer
19.12
4.62
31.88%
EPD
Enterprise Products Partners
38.41
11.25
41.43%
KMI
Kinder Morgan
33.30
9.13
37.79%
OKE
Oneok
90.63
16.08
21.56%
WMB
Williams Co
74.04
21.43
40.74%
MPLX
MPLX
55.24
12.09
28.02%
Energy Transfer Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Energy Transfer Establishes Tenth Supplemental Indenture for Senior Notes
Neutral
Jan 27, 2026
On January 27, 2026, Energy Transfer LP executed a Tenth Supplemental Indenture with U.S. Bank Trust Company, National Association, as trustee, under its existing December 14, 2022 base indenture, establishing the framework for new senior notes is...
Business Operations and StrategyPrivate Placements and Financing
Energy Transfer Announces $3 Billion Senior Notes Offering
Positive
Jan 13, 2026
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 s...
Business Operations and StrategyFinancial Disclosures
Energy Transfer Issues 2026 Growth and Earnings Outlook
Positive
Jan 6, 2026
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 commitmen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.