Analysis of Three Key MLP Energy Partnerships
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Source: NASDAQ.COM
- Energy Transition Potential: Energy Transfer, with a market cap of $65 billion, offers a quarterly distribution of $0.335 per unit, implying a yield of approximately 7.2%; despite missing EPS estimates, its natural gas supply agreements and expansion plans indicate strong growth potential.
- Stable Distribution Growth: MPLX's quarterly distribution stands at $1.0765 per unit, yielding around 7.4%, and has raised its distribution by 12.5% for the second consecutive year, with a 13.78% increase in full-year net income, showcasing robust capital return performance.
- No Capital Expenditure Risk: Kimbell Royalty Partners provides a quarterly distribution of $0.37 per unit, yielding 10.7%, and its unique royalty model entirely eliminates capital expenditure risk, with a staggering 713.27% surge in net income for 2025, reflecting strong profitability.
- Market Appeal: All three MLPs offer yields exceeding market averages, with Energy Transfer leveraging scale and data center growth potential, MPLX excelling in consistent execution and distribution growth, while Kimbell stands out with the highest yield and tax-advantaged distribution structure.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 19.390
Low
17.00
Averages
20.65
High
23.00
Current: 19.390
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Jefferies Upgrades Energy Transfer LP Unit Rating and Price Target
- Rating Upgrade: Jefferies upgraded Energy Transfer LP Unit (ET) stock rating from Hold to Buy and raised the price target from $21 to $23, reflecting the company's ongoing success in the natural gas sector and improvements in its liquids business.
- Record Exports: In Q1 2026, Energy Transfer's natural gas liquids (NGL) exports surged 19%, setting a new record for the company, while NGL transportation volumes also increased by 12%, showcasing strong performance in liquid transportation.
- Fundamental Improvement: Jefferies noted that Energy Transfer's fundamentals have significantly improved compared to when the firm first initiated coverage, driven by strong U.S. production trends and rising Permian gas-oil ratios, which further bolstered investor confidence.
- Attractive Valuation: Supported by robust fundamentals, Jefferies believes Energy Transfer's valuation is discounted, prompting the upgrade of its stock rating, indicating a positive outlook from the market regarding the company's future prospects.
See More
Energy Transfer CEO Transition Announcement
- Executive Retirement Plan: Energy Transfer announced that Mackie McCrea will retire by December 31, 2026, marking a significant leadership change that is expected to impact the company's strategic direction and operational model.
- CEO Transition Arrangement: Following McCrea's retirement, current co-CEO Thomas Long will become the sole CEO, a change that may influence investor confidence in the company's future development.
- Personal Goals and Family Time: McCrea cited his desire to pursue personal objectives and spend more time with family as reasons for his retirement, reflecting the life choices of executives in the later stages of their careers, which could affect company culture and employee morale.
- Accumulated Leadership Experience: Having been with Energy Transfer since 1997, McCrea held various leadership roles, including President and COO, and his extensive experience has laid a foundation for the company's growth, while future leadership changes will test the company's ability to sustain growth.
See More
Dutch Court to Hear Greenpeace Case Against Energy Transfer
- Court Jurisdiction Confirmed: A Dutch court has decided to hear Greenpeace's lawsuit against U.S. pipeline company Energy Transfer despite the company's objections, asserting jurisdiction due to Greenpeace's headquarters in the Netherlands, which could impact Energy Transfer's reputation and legal strategy in Europe.
- Lawsuit Background: Greenpeace alleges that Energy Transfer's lawsuits in the U.S. against groups protesting the Dakota Access pipeline are 'meritless', and a favorable ruling for Greenpeace could significantly affect the company's future legal actions and damage its public image.
- Compensation Claims: Greenpeace is seeking compensation for losses incurred in the U.S., particularly during the Dakota Access protests, and if the court supports its claims, Energy Transfer could face liabilities of up to $3.45 million, further straining its financial position.
- Strategic Implications: The progress of this lawsuit may compel Energy Transfer to reassess its legal strategies and public relations, especially in light of increasing activism from environmental organizations, potentially affecting future project approvals and investor confidence.
See More
Investment Recommendations for Zoetis and Energy Transfer
- Zoetis Investment Warning: Zoetis's performance has raised concerns, with analysts expressing a preference for Elanco for the first time, indicating potential challenges for Zoetis in the animal health sector that could impact market confidence and stock performance.
- Energy Transfer Investment Opportunity: Energy Transfer is viewed as a highly attractive investment option, with analysts noting its undervalued stock price and good dividend yield, likely appealing to investors seeking stable income.
- Market Sentiment Shift: The contrasting negative outlook for Zoetis and positive sentiment for Energy Transfer reflects differing expectations in the market, which may lead investors to reassess their portfolios.
- Long-term Investment Strategy: Jim Cramer recommends focusing on Energy Transfer's investment potential, emphasizing its undervalued status and stable dividend yield, which could provide investors with long-term wealth growth opportunities.
See More
Energy Transfer LP Rated Among Best Oil and Gas Stocks by Hedge Funds
- Analyst Price Target Increase: Morgan Stanley raised Energy Transfer LP's (NYSE:ET) price target from $21 to $23, indicating over 20% upside potential, despite the company missing profit estimates in its Q1 report.
- Significant Revenue Growth: Energy Transfer LP's revenue surged over 32% year-over-year, exceeding market expectations, showcasing the company's strong performance in the energy sector.
- Improved EBITDA and Cash Flow: The company's adjusted EBITDA increased by 20% year-over-year, while DCF attributable to partners rose by 17%, indicating enhanced operational efficiency and profitability.
- Upward Guidance for Full Year: Energy Transfer LP raised its adjusted EBITDA guidance for 2026 to between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion, reflecting the company's confidence in future growth.
See More
Stable Dividend Performance of High-Yield Stocks
- Ares Capital's Stable Dividends: Ares Capital has paid a stable or growing dividend for over 16 consecutive years, currently offering a quarterly dividend of $0.48 per share, with a high yield of 10.2% reflecting its strong financial health and earnings capacity, making it appealing to risk-tolerant investors despite its higher risk profile.
- Energy Transfer's Strong Cash Flow: Energy Transfer generated $2.7 billion of distributable cash flow in the first quarter, easily covering nearly $1.2 billion in distributions, and plans to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive its distribution growth by 3% to 5% annually.
- Starwood Property's Consistent Dividends: Starwood Property Trust, a real estate investment trust, has maintained its quarterly dividend rate of $0.48 for over a decade, and although its distributable earnings were $0.39 per share in the first quarter, it has $3.87 per share in unrealized distributable earnings to support its dividend, showcasing its sustainability.
- Attracting Risk Investors: Ares Capital, Energy Transfer, and Starwood Property currently offer dividend yields up to 11.2%, and despite the overall low dividend yields in the market, these companies attract income-seeking investors through their stable dividend strategies, demonstrating their competitiveness in the current market environment.
See More
Jefferies Upgrades Energy Transfer LP Unit Rating and Price Target
- Rating Upgrade: Jefferies upgraded Energy Transfer LP Unit (ET) stock rating from Hold to Buy and raised the price target from $21 to $23, reflecting the company's ongoing success in the natural gas sector and improvements in its liquids business.
- Record Exports: In Q1 2026, Energy Transfer's natural gas liquids (NGL) exports surged 19%, setting a new record for the company, while NGL transportation volumes also increased by 12%, showcasing strong performance in liquid transportation.
- Fundamental Improvement: Jefferies noted that Energy Transfer's fundamentals have significantly improved compared to when the firm first initiated coverage, driven by strong U.S. production trends and rising Permian gas-oil ratios, which further bolstered investor confidence.
- Attractive Valuation: Supported by robust fundamentals, Jefferies believes Energy Transfer's valuation is discounted, prompting the upgrade of its stock rating, indicating a positive outlook from the market regarding the company's future prospects.
See More
Energy Transfer CEO Transition Announcement
- Executive Retirement Plan: Energy Transfer announced that Mackie McCrea will retire by December 31, 2026, marking a significant leadership change that is expected to impact the company's strategic direction and operational model.
- CEO Transition Arrangement: Following McCrea's retirement, current co-CEO Thomas Long will become the sole CEO, a change that may influence investor confidence in the company's future development.
- Personal Goals and Family Time: McCrea cited his desire to pursue personal objectives and spend more time with family as reasons for his retirement, reflecting the life choices of executives in the later stages of their careers, which could affect company culture and employee morale.
- Accumulated Leadership Experience: Having been with Energy Transfer since 1997, McCrea held various leadership roles, including President and COO, and his extensive experience has laid a foundation for the company's growth, while future leadership changes will test the company's ability to sustain growth.
See More
Dutch Court to Hear Greenpeace Case Against Energy Transfer
- Court Jurisdiction Confirmed: A Dutch court has decided to hear Greenpeace's lawsuit against U.S. pipeline company Energy Transfer despite the company's objections, asserting jurisdiction due to Greenpeace's headquarters in the Netherlands, which could impact Energy Transfer's reputation and legal strategy in Europe.
- Lawsuit Background: Greenpeace alleges that Energy Transfer's lawsuits in the U.S. against groups protesting the Dakota Access pipeline are 'meritless', and a favorable ruling for Greenpeace could significantly affect the company's future legal actions and damage its public image.
- Compensation Claims: Greenpeace is seeking compensation for losses incurred in the U.S., particularly during the Dakota Access protests, and if the court supports its claims, Energy Transfer could face liabilities of up to $3.45 million, further straining its financial position.
- Strategic Implications: The progress of this lawsuit may compel Energy Transfer to reassess its legal strategies and public relations, especially in light of increasing activism from environmental organizations, potentially affecting future project approvals and investor confidence.
See More
Investment Recommendations for Zoetis and Energy Transfer
- Zoetis Investment Warning: Zoetis's performance has raised concerns, with analysts expressing a preference for Elanco for the first time, indicating potential challenges for Zoetis in the animal health sector that could impact market confidence and stock performance.
- Energy Transfer Investment Opportunity: Energy Transfer is viewed as a highly attractive investment option, with analysts noting its undervalued stock price and good dividend yield, likely appealing to investors seeking stable income.
- Market Sentiment Shift: The contrasting negative outlook for Zoetis and positive sentiment for Energy Transfer reflects differing expectations in the market, which may lead investors to reassess their portfolios.
- Long-term Investment Strategy: Jim Cramer recommends focusing on Energy Transfer's investment potential, emphasizing its undervalued status and stable dividend yield, which could provide investors with long-term wealth growth opportunities.
See More
Energy Transfer LP Rated Among Best Oil and Gas Stocks by Hedge Funds
- Analyst Price Target Increase: Morgan Stanley raised Energy Transfer LP's (NYSE:ET) price target from $21 to $23, indicating over 20% upside potential, despite the company missing profit estimates in its Q1 report.
- Significant Revenue Growth: Energy Transfer LP's revenue surged over 32% year-over-year, exceeding market expectations, showcasing the company's strong performance in the energy sector.
- Improved EBITDA and Cash Flow: The company's adjusted EBITDA increased by 20% year-over-year, while DCF attributable to partners rose by 17%, indicating enhanced operational efficiency and profitability.
- Upward Guidance for Full Year: Energy Transfer LP raised its adjusted EBITDA guidance for 2026 to between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion, reflecting the company's confidence in future growth.
See More
Stable Dividend Performance of High-Yield Stocks
- Ares Capital's Stable Dividends: Ares Capital has paid a stable or growing dividend for over 16 consecutive years, currently offering a quarterly dividend of $0.48 per share, with a high yield of 10.2% reflecting its strong financial health and earnings capacity, making it appealing to risk-tolerant investors despite its higher risk profile.
- Energy Transfer's Strong Cash Flow: Energy Transfer generated $2.7 billion of distributable cash flow in the first quarter, easily covering nearly $1.2 billion in distributions, and plans to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive its distribution growth by 3% to 5% annually.
- Starwood Property's Consistent Dividends: Starwood Property Trust, a real estate investment trust, has maintained its quarterly dividend rate of $0.48 for over a decade, and although its distributable earnings were $0.39 per share in the first quarter, it has $3.87 per share in unrealized distributable earnings to support its dividend, showcasing its sustainability.
- Attracting Risk Investors: Ares Capital, Energy Transfer, and Starwood Property currently offer dividend yields up to 11.2%, and despite the overall low dividend yields in the market, these companies attract income-seeking investors through their stable dividend strategies, demonstrating their competitiveness in the current market environment.
See More
