Energy Transfer Offers 7.9% Distribution Yield, Attracting Investor Interest
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Attractive Yield: Energy Transfer's distribution yield stands at 7.9%, significantly higher than the S&P 500's 1.1% and the average energy stock's 3.3%, highlighting its appeal as a high-yield investment option.
- Financial Stability: As of Q3 2025, the company's distributable cash flow covers its distribution by 1.65 times, indicating robust financial health with a debt-to-EBITDA ratio within the target range of 4 to 4.5 times.
- Future Growth Potential: The firm plans to invest $5 billion in 2026 to drive distribution growth, targeting a rate of 3% to 5%, which will further enhance its competitive position in the market.
- Historical Risk Warning: Although the distribution has returned to growth, the previous cut in 2020 due to falling oil prices raises concerns among conservative investors, potentially impacting their future investment decisions.
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 22.00 USD with a low forecast of 17.00 USD and a high forecast of 25.00 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.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.890
Low
17.00
Averages
22.00
High
25.00
Current: 16.890
Low
17.00
Averages
22.00
High
25.00
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.
