Energy Transfer LP (ET)

Price$19.91Cached quoteAs of 2026-09-30 09:00 UTC

AI: Undervalued

Price checkThe units look undervalued because the cash yield remains high despite accelerating operating results.

At the observed market value, Energy Transfer offers an annualized cash distribution of $1.36 per unit, a yield of roughly 6.5%. First-half 2026 distributable cash flow, a measure of cash available for distributions and reinvestment, totaled about $5.3 billion, while management raised full-year operating cash earnings guidance to $18.8-$19.1 billion. Including roughly $67 billion of net debt, the business trades near 7.4 times that guidance. That valuation appears modest for predominantly fee-based infrastructure growing earnings, although its large debt load prevents a wider margin of safety.

Big picturePipeline cash generation has stayed resilient while new projects are lifting earnings faster than commodity exposure suggests.

The supplied financial history shows operating cash flow remaining positive every year since 2020, ranging from $7.36 billion to $11.51 billion, even as energy prices moved sharply. Operating cash earnings increased from $6.66 billion in 2020 to $14.71 billion in 2025, then reached $9.72 billion in just the first half of 2026. Energy Transfer says most segment margin is fee-based, meaning customers largely pay for transportation and processing rather than exposing the partnership directly to commodity prices. Cycles still affect volumes, exports and producer activity, but the network cushions those swings.

Business strengthA vast pipeline network supports dependable fees, but heavy debt makes disciplined investment especially important.

Energy Transfer operates roughly 140,000 miles of pipelines and related infrastructure across 44 states, giving it connections that would be expensive and difficult to reproduce. The weakness is leverage: supplied total debt increased from $59.8 billion in 2024 to $68.3 billion in 2025 and remained about $68.4 billion at mid-2026. Management targets debt near four to four-and-a-half times operating cash earnings. Capital allocation favors distributions and expansion rather than buybacks; the supplied history shows essentially no common-unit repurchases since 2022, so investors should not assume shrinking unit count will drive returns.

What could change the storyData-center and export demand could lift returns, while costly expansion or rising debt could erase the discount.

The bull case rests on contracted growth: Energy Transfer plans roughly $5.6-$5.9 billion of 2026 organic growth spending, while its Nederland expansion has 240,000 barrels per day of new ethane capacity fully contracted into the 2040s. Management targets mid-teen returns on major projects. The bear case is that debt and capital spending keep rising faster than cash. A warning appeared when the Green Chile pipeline serving a planned data center slipped to February 2027. If similar delays reduce project returns while leverage stays elevated, the current valuation discount would be justified rather than an opportunity.

AI: News

Guidance raised againA strong second quarter pushed Energy Transfer to raise its full-year earnings outlook again.

On August 4, Energy Transfer reported second-quarter net income attributable to partners of $2.09 billion, versus $1.16 billion a year earlier. Adjusted operating cash earnings increased 31% to $5.07 billion, while distributable cash flow rose 32% to $2.59 billion. Management lifted full-year operating cash earnings guidance to $18.8-$19.1 billion from $18.2-$18.6 billion. The units rose around the release period, but price timing alone cannot establish that the earnings update caused the move.

Nederland expansion fully contractedLong-term export contracts support another major expansion and reduce uncertainty around returns on new spending.

On June 18, Energy Transfer announced an expansion of its Nederland export terminal adding 240,000 barrels per day of ethane capacity and 55,000 barrels per day of liquefied petroleum gas capacity. All new ethane capacity is committed under long-term contracts extending into the 2040s. The project also requires pipeline and dock additions. Those commitments matter because they lock in customers before construction, lowering demand risk and supporting management's case that elevated capital spending can produce durable future cash flows.

Data-center pipeline delayedA pipeline serving a major planned data center slipped into 2027, highlighting execution risk in the growth program.

In August, Energy Transfer's Transwestern subsidiary pushed the expected start of the Green Chile Project from August to February 1, 2027. The roughly $60 million line is intended to supply gas to the planned Oracle and OpenAI Project Jupiter data center in New Mexico. The delay is small relative to Energy Transfer's overall asset base, but it matters because data-center power demand is an important growth theme. There is insufficient evidence to attribute subsequent unit-price movements specifically to this delay.

Distribution increased againEnergy Transfer raised its payout for a nineteenth straight quarter, reinforcing the income case for investors.

On July 27, Energy Transfer increased its quarterly common-unit distribution to $0.34, or $1.36 annualized, more than 3% above the prior-year quarter. It was the nineteenth consecutive quarterly increase. At the observed market price, that payment represents a yield of roughly 6.5%. The increase is material because cash distributions are a central part of investor returns from this partnership, while recent distributable cash flow remains comfortably above the amount needed for the payout.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$85.54B	$82.67B	$78.59B	$89.88B	$67.42B	$38.95B	$54.21B	$54.09B	$40.52B	$31.79B	$36.10B	$55.69B	$48.34B	$16.96B	$8.19B	$6.56B	$5.42B	$9.29B
Gross profit	$22.04B	$20.70B	$18.05B	$17.64B	$17.02B	$13.47B	$14.41B	$12.48B	$9.56B	$8.10B	$7.43B	$7.30B	$5.78B	$3.88B	$3.02B	$2.49B	$2.30B	—
Gross margin	25.77%	25.03%	22.96%	19.63%	25.25%	34.57%	26.58%	23.08%	23.58%	25.47%	20.58%	13.11%	11.96%	22.85%	36.89%	37.93%	42.37%	—
Operating expenses	$76.51B	$73.53B	$70.29B	$82.14B	$58.63B	$35.97B	$47.01B	$48.68B	$37.80B	$29.94B	$33.81B	$53.22B	$46.78B	$15.60B	$6.95B	$5.51B	$4.31B	$8.19B
Operating income	$9.03B	$9.14B	$8.29B	$7.74B	$8.79B	$2.98B	$7.20B	$5.40B	$2.72B	$1.85B	$2.29B	$2.47B	$1.55B	$1.36B	$1.24B	$1.04B	$1.11B	$1.10B
Operating margin	10.55%	11.05%	10.56%	8.61%	13.04%	7.65%	13.29%	9.99%	6.71%	5.82%	6.34%	4.44%	3.21%	8.02%	15.10%	15.92%	20.50%	11.82%
EBITDA	$14.71B	$14.30B	$12.68B	$11.90B	$12.61B	$6.66B	$10.35B	$8.26B	$5.28B	$4.07B	$4.24B	$4.19B	$2.86B	$2.23B	$1.82B	$1.45B	$1.44B	$1.37B
EBITDA margin	17.20%	17.30%	16.14%	13.24%	18.70%	17.09%	19.09%	15.28%	13.02%	12.79%	11.74%	7.53%	5.93%	13.15%	22.26%	22.12%	26.50%	14.78%
Net income	$4.43B	$4.81B	$3.94B	$4.76B	$5.47B	−$648.0M	$3.52B	$1.75B	$954.0M	$995.0M	$1.19B	$633.0M	$196.0M	$304.0M	$310.0M	$193.0M	$442.5M	$375.0M
Net profit margin	5.18%	5.82%	5.01%	5.29%	8.11%	−1.66%	6.49%	3.23%	2.35%	3.13%	3.29%	1.14%	0.41%	1.79%	3.79%	2.94%	8.17%	4.04%
Basic EPSper basic share	$1.22	$1.29	$1.10	$1.40	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Diluted EPSper diluted share	$1.21	$1.28	$1.09	$1.40	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of ET
Holder	Shares held
ALPS ADVISORS INC	86.9M
MORGAN STANLEY	85.61M
JPMORGAN CHASE & CO	81.08M
GOLDMAN SACHS GROUP INC	62.82M
Invesco Ltd.	54.93M
TORTOISE CAPITAL ADVISORS, L.L.C.	38M
Blackstone Inc.	35.78M
UBS Group AG	30.55M
BANK OF AMERICA CORP /DE/	28.14M
Energy Income Partners, LLC	25.65M
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	24.42M
KAYNE ANDERSON CAPITAL ADVISORS LP	24.17M
FMR LLC	21.97M
NATIXIS	21.4M
WESTWOOD HOLDINGS GROUP INC	16.83M
NEUBERGER BERMAN GROUP LLC	16.69M
CHICKASAW CAPITAL MANAGEMENT LLC	15.36M
CIBC Bancorp USA Inc.	13.53M
COOPERMAN LEON G	13.32M
Clearbridge Investments, LLC	13.31M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys8$116.46M disclosed value

Sells (SEC code S)1$25.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Nov 20, 2025Form 4	WARREN KELCY LDirector	BuyCommon Units · indirect	1.00M	$16.81	$16.81M	105.58M
Nov 19, 2025Form 4	WARREN KELCY LDirector	BuyCommon Units · indirect	1.00M	$16.95	$16.95M	104.58M
Aug 20, 2025Form 4	WARREN KELCY LDirector	BuyCommon Units	1.35M	$17.36	$23.44M	69.18M
Aug 19, 2025Form 4	WARREN KELCY LDirector	BuyCommon Units	650.0K	$17.30	$11.24M	67.83M
Jun 13, 2025Form 4	Perry James RichardDirector	SellCommon Units · indirect	1.4K	$18.48	$25.3K	24.5K

Review ownership filings at SEC.gov ↗

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Energy Transfer LP (ET)

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