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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ET

Energy Transfer LP's recent performance has been driven by strong pipeline assets, rising demand, and steady fee-based earnings growth. The company's diversified business model, including its gas storage network, boosts reliability and fee-based revenues, unlocking growth opportunities. Energy Transfer's resilience in the face of sector headwinds is supported by a robust distribution yield and a burgeoning backlog that should benefit earnings and distribution growth. The company's fee-based contracts drive steady earnings, support growth investments, and shield it from commodity price volatility. Energy Transfer's expanding gas storage network and midstream assets highlight its long-term growth potential, with analysts projecting 7-10% annual EBITDA growth through 2030.

1.c. Company Highlights

2. Energy Transfer's Q4 2025 Earnings: A Strong Performance with Growth Opportunities

Energy Transfer reported adjusted EBITDA of $4.2 billion, up from $3.9 billion in the fourth quarter of 2024, driven by its diverse asset base and growing demand for energy resources. Distributable cash flow was $2 billion, consistent with the previous year. The company's earnings per share (EPS) came in at $0.25, below analyst estimates of $0.3728. Revenue growth is expected to be around 3.1% next year, according to analyst estimates.

Publication Date: Feb -18

📋 Highlights
  • EBITDA Growth:: Adjusted EBITDA reached $4.2B in Q4 2025, up from $3.9B in Q4 2024, reflecting operational strength.
  • Capital Investment:: 2025 organic growth capital hit $4.5B, with 2026 projected to rise to $5–5.5B, focusing on natural gas assets like Hugh Brinson and Desert Southwest pipelines.
  • Segment Leader:: NGL and refined products led with $1.1B in adjusted EBITDA, outperforming other segments like midstream ($720M) and crude oil ($722M).
  • 2026 EBITDA Guidance:: Updated to $17.45B–$17.85B, driven by the J-W Power acquisition and project completions.
  • Distribution Growth:: Maintained long-term annual distribution growth of 3–5%, supported by $2B distributable cash flow and disciplined capital governance.

Segment Performance

The company's segment results showed adjusted EBITDA of $1.1 billion in NGL and refined products, $720 million in midstream, $722 million in crude oil, $523 million in interstate natural gas, and $355 million in intrastate natural gas. The NGL and refined products segment drove growth, with the company investing heavily in this area.

Growth Opportunities

Energy Transfer has a significant backlog of growth projects, including the expansion of the Nederland and Marcus Hook terminals, and the construction of new storage caverns. The company has also entered into long-term agreements with customers, including a 20-year binding agreement with Entergy Louisiana. Guidance for 2026 adjusted EBITDA has been updated to $17.45 billion to $17.85 billion, driven by the acquisition of J-W Power Company.

Valuation and Returns

With a P/E Ratio of 13.86, P/B Ratio of 1.39, and EV/EBITDA of 8.82, the company's valuation metrics suggest a reasonable price for its earnings and book value. The Dividend Yield is 7.12%, indicating an attractive return for income-seeking investors. The company's ROIC is 5.19%, and ROE is 12.75%, indicating a decent return on capital and equity.

Capital Discipline and Distribution Growth

Energy Transfer is focused on capital discipline and expects to maintain a long-term annual distribution growth rate of 3% to 5%. The company is well-positioned for continued growth, with a diverse product offerings and an extensive asset base. As Marshall McCrea mentioned, the company is excited about its asset footprint in the US, expecting significant growth over the next 10-15 years.

Future Prospects

The company is exploring new growth opportunities, including the development of natural gas-fired electric generation facilities and the expansion of its pipeline systems to support growing demand for energy resources. With a strong E&C team and a significant amount of organic growth ahead, Energy Transfer is confident about its ability to maintain and grow its business.

3. NewsRoom

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Energy Transfer Remains A 'Buy' Amid The U.S.-Iran Escalation

Mar -02

Source: seekingalpha.com

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Build It Before You Need It: Dividends That Deliver Freedom

Mar -02

Source: seekingalpha.com

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Here's the First Energy Stock I Plan to Buy in March

Mar -01

Source: fool.com

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Iran Attack Will Launch Energy Stocks – 5 Strong Buy High-Yield Companies You Have To Own

Feb -28

Source: 247wallst.com

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6 High-Yield Energy Stocks Paying Up To 14.8%

Feb -28

Source: forbes.com

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The Smartest Dividend Stocks to Buy With $150 Right Now

Feb -28

Source: fool.com

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The Ultimate 8%-Yielding 'Sleep-Well-At-Night' Retirement Income Machine

Feb -27

Source: seekingalpha.com

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3 Monster Stocks to Hold for the Next 10 Years

Feb -27

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.42%)

6. Segments

Crude Oil Transportation and Services

Expected Growth: 5.5%

Crude Oil Transportation and Services from Energy Transfer LP's 5.5% growth is driven by increased demand for crude oil transportation, expansion of its pipeline network, and strategic acquisitions. The company's diversified services, including storage and terminal operations, also contribute to its growth. Growing production in Permian Basin and other shale plays further supports the segment's growth.

NGL and Refined Products Transportation and Services

Expected Growth: 6.2%

Energy Transfer LP's NGL and Refined Products Transportation and Services segment growth of 6.2% is driven by increased volumes, primarily from Permian Basin production, expansion of its NGL export capabilities, and higher demand for refined products. The segment benefits from its extensive network and strategic acquisitions, enabling it to capitalize on growing energy demand.

Investment in Sunoco LP

Expected Growth: 4.8%

The investment in Sunoco LP from Energy Transfer LP is driven by strategic growth opportunities in the convenience store and fuel distribution market. With a growth rate of 4.8%, key drivers include increasing demand for fuel and convenience store services, expansion of Sunoco's retail footprint, and potential for operational efficiencies and cost savings through integration with Energy Transfer LP's assets.

Midstream

Expected Growth: 6.5%

Energy Transfer LP's midstream segment growth of 6.5% is driven by increased volumes from Permian Basin assets, expansion of NGL processing capacity, and higher demand for natural gas and NGLs. Additionally, the company's strategic acquisitions and partnerships have contributed to its growth, enabling it to capitalize on rising energy demand and infrastructure needs.

All Other

Expected Growth: 3.9%

All Other segment growth of 3.9% driven by increased volumes and higher prices in Energy Transfer LP's diversified energy business, including gains from strategic acquisitions, improved operational efficiencies, and favorable market conditions in natural gas, NGL, and crude oil sectors.

Investment in Usac

Expected Growth: 7.1%

The investment in USA Compression (USAC) from Energy Transfer LP is driven by growth in natural gas production, increasing demand for compression services, and USAC's expanding fleet. With a growth rate of 7.1%, USAC is poised to benefit from rising natural gas exports, power generation demand, and infrastructure expansion, solidifying its position in the energy midstream sector.

Intrastate Transportation and Storage

Expected Growth: 4.2%

Intrastate Transportation and Storage from Energy Transfer LP's growth of 4.2% is driven by increasing demand for natural gas, expanding infrastructure, and favorable regulatory environment. The segment's growth is also supported by ET's strategic acquisitions, efficient operations, and increasing utilization of its storage facilities, contributing to higher volumes and revenues.

Interstate Transportation and Storage

Expected Growth: 5.8%

Interstate Transportation and Storage from Energy Transfer LP's 5.8% growth is driven by increased demand for natural gas, expansion of transportation infrastructure, and strategic acquisitions. The segment's growth is also fueled by its extensive network, operational efficiency, and favorable market conditions, enabling the company to capitalize on emerging opportunities and strengthen its market position.

Eliminations

Expected Growth: 0.0%

The 0.0% growth in Eliminations from Energy Transfer LP suggests that there are no changes in inter-segment transactions or eliminations. This stability implies that the company's business segments are not experiencing significant shifts in operations or transactions that would impact eliminations, indicating a steady-state condition with no major growth drivers or disruptors.

7. Detailed Products

Natural Gas Pipelines

Energy Transfer LP's natural gas pipelines segment involves the transportation of natural gas from production areas to processing plants, storage facilities, and ultimately to end-users such as residential, commercial, and industrial customers.

NGL (Naphtha and Gas Liquids) Pipelines

The NGL pipelines segment involves the transportation of natural gas liquids (NGLs) such as ethane, propane, butane, and isobutane from processing plants and other supply sources to fractionation facilities, storage terminals, and end-users.

Refined Products Pipelines

The refined products pipelines segment involves the transportation of refined petroleum products such as gasoline, diesel fuel, and jet fuel from refineries and other supply sources to storage terminals, airports, and end-users.

Crude Oil Pipelines

The crude oil pipelines segment involves the transportation of crude oil from production areas to refineries, storage facilities, and other markets.

LNG (Liquefied Natural Gas) and Other

The LNG and other segment involves the production and sale of LNG, as well as other energy-related products and services.

8. Energy Transfer LP's Porter Forces

Forces Ranking

Threat Of Substitutes

Energy Transfer LP operates in the energy industry, where substitutes such as renewable energy sources (e.g., solar, wind) and alternative fuels (e.g., natural gas, hydrogen) are available. However, the demand for energy is relatively inelastic, and switching to substitutes may require significant investments, which limits the threat.

Bargaining Power Of Customers

Energy Transfer LP's customers are primarily large industrial and commercial users, as well as other energy companies. These customers have relatively low bargaining power due to the large volumes of energy they purchase and the limited number of alternative suppliers.

Bargaining Power Of Suppliers

Energy Transfer LP relies on suppliers for equipment, materials, and services. While there are multiple suppliers available, some of the equipment and materials required for energy production and transportation are specialized and have limited suppliers, which gives suppliers some bargaining power.

Threat Of New Entrants

The energy industry is capital-intensive and heavily regulated, which creates significant barriers to entry for new companies. Additionally, Energy Transfer LP has a large existing infrastructure and established relationships with suppliers and customers, making it difficult for new entrants to compete.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Energy Transfer LP competes with other pipeline and energy companies for access to resources, transportation capacity, and customer contracts, which leads to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.29%
Debt Cost 5.59%
Equity Weight 36.71%
Equity Cost 7.97%
WACC 6.46%
Leverage 172.43%

11. Quality Control: Energy Transfer LP passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cheniere Energy Partners

A-Score: 7.1/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 4.0

Volatility: 7.7

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Enterprise Products Partners

A-Score: 7.0/10

Value: 5.8

Growth: 5.1

Quality: 6.4

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.4/10

Value: 7.3

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

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Kinder Morgan

A-Score: 6.2/10

Value: 3.9

Growth: 3.6

Quality: 5.3

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.3

Quality: 5.7

Yield: 9.0

Momentum: 7.0

Volatility: 9.0

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ONEOK

A-Score: 6.1/10

Value: 6.5

Growth: 5.2

Quality: 5.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.1$

Current Price

19.1$

Potential

-0.00%

Expected Cash-Flows