Energy Transfer Increases Transwestern Pipeline Capacity to 2.3 Bcf/d for Southwest Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
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Source: Newsfilter
- Project Expansion: Energy Transfer announced an increase in the Transwestern Pipeline's Desert Southwest expansion project mainline diameter from 42 inches to 48 inches, boosting capacity to 2.3 billion cubic feet per day to meet rising customer demand in Arizona and New Mexico.
- Economic Drivers: The project aims to address the region's ongoing population growth and positive economic momentum, with expectations to facilitate the transition from coal-fired power plants to natural gas, further enhancing market demand for the project.
- Investment Scale: The total cost of the expansion project is expected to reach approximately $5.6 billion, with Energy Transfer's total growth capital expenditures for 2026 projected to increase by about $200 million, providing an efficient means to capture growing demand sources.
- Service Timeline: Energy Transfer expects the project to be in service by the fourth quarter of 2029, further strengthening Arizona's energy infrastructure to meet the increasing power needs.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ET is 20.65 USD with a low forecast of 17.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.240
Low
17.00
Averages
20.65
High
23.00
Current: 18.240
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.
Frozen Assets: Winter Storm Fern Boosts These 3 Energy Stocks
Impact of Winter Storm Fern: The winter storm has affected 34 states in the U.S., causing significant disruptions and prompting millions of Americans to increase their heating usage, while meteorologists track plummeting temperatures and potential blizzard conditions.
Energy Market Dynamics: Natural gas futures surged by 5.49% this week, with wholesale electricity prices in the PJM region reaching unprecedented levels, leading to heightened anxiety among consumers regarding utility bills and signaling market opportunities for investors.
Reliability and Investment in Energy: The storm serves as a real-time stress test for energy infrastructure, emphasizing the importance of reliable energy sources and the need for investors to focus on supply chains and the structural value of energy reliability.
Future of Energy Companies: Companies like Energy Transfer and Vistra Corp are positioned to benefit from the current market dynamics, with Vistra's recent auction success and strategic pivots indicating a focus on high-return domestic pipelines and a strong balance sheet to weather future storms.
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Energy Transfer Declares Quarterly Dividend Increase
- Quarterly Dividend Increase: Energy Transfer has declared a quarterly dividend of $0.3350 per share, reflecting a 0.8% increase from the previous $0.3325, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Attractive Yield: The forward yield of 7.47% not only provides investors with substantial cash returns but also has the potential to attract more income-seeking investors to the company's stock, enhancing its market appeal.
- Dividend Payment Schedule: The dividend is payable on February 19, with a record date of February 6 and an ex-dividend date also set for February 6, ensuring shareholders receive their earnings promptly and bolstering market interest in the stock.
- Bond Offering Support: Energy Transfer is also pricing a $3 billion bond offering, which not only supports the company's capital structure but also provides funding for future investments and dividend payments, reinforcing its financial stability.
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