Energy Transfer Shows Strong Growth Prospects in Midstream Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: NASDAQ.COM
- Growth Potential of Energy Transfer: Energy Transfer (ET) boasts one of the largest integrated midstream systems in the U.S., with projected spending of $5.5 to $5.9 billion on organic growth projects this year, driving robust growth in the coming years, particularly amid strong natural gas demand.
- Consistent Dividend Performance: Enterprise Products Partners (EPD) has increased its dividends for 27 consecutive years, currently offering a 6% yield and trading at a forward EV/EBITDA multiple of 10.5, reflecting its stability and attractiveness in the midstream sector.
- High Yield of Western Midstream: Western Midstream (WES) features an 8.7% yield and only 3x leverage, successfully repositioning itself through the acquisition of Brazos Delaware assets, with expected distribution growth in the mid-to-low single digits moving forward.
- Market Competitive Advantage: As tech stocks rise, investor interest in high-yield midstream stocks increases, with the solid performances of Energy Transfer, Enterprise Products, and Western Midstream providing relatively safe investment options, especially amid heightened market volatility.
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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: 19.060
Low
17.00
Averages
20.65
High
23.00
Current: 19.060
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.
Evertz Technologies Reports Record Annual Revenue of $515.8 Million
- Annual Revenue Growth: Evertz Technologies Ltd achieved record annual revenue of $515.8 million, with international revenue increasing by 16% to $148 million, reflecting strong project deliveries in Western Europe and enhancing its market position.
- Software Services Revenue Increase: Recurring software services and other software revenue rose by 8% year-over-year to $240.7 million, indicating significant progress in the software business, which is expected to further drive overall profitability in the future.
- Cash Flow and Dividend Distribution: Although cash reserves decreased from $111.7 million to $19.1 million primarily due to $136 million in dividends paid, including $75.5 million in special dividends, the company maintains stable operating cash flow with annual cash inflow of $76.2 million.
- Hardware Revenue Challenges: Hardware revenue declined by 1% to $275.1 million, and revenue in the US-Canadian region fell by 2% to $367.8 million, reflecting regional challenges that may impact future profitability.
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- Enbridge Overview: Enbridge ranks as North America's largest pipeline operator, transporting approximately 30% of North America's crude oil and 40% of U.S. crude oil imports, while also being the largest natural gas utility in North America, serving 7.1 million customers, showcasing its strong position in the energy market.
- Stable Dividend Growth: Enbridge has increased its dividend for 31 consecutive years, with a current yield exceeding 5%, and expects to grow its dividend by up to 5% annually in the medium term, making it an ideal choice for income investors seeking stable cash flows.
- Growth Potential of Energy Transfer: Energy Transfer operates over 144,000 miles of pipeline with a forward distribution yield of 7%, targeting annual distribution growth of 3% to 5% in the long term, benefiting from rising natural gas demand driven by artificial intelligence.
- Advantages of Enterprise Products Partners: Enterprise Products Partners is considered the gold standard in the midstream energy sector, boasting the highest credit rating and a 27-year history of distribution growth, currently investing approximately $5.3 billion in capital projects to capitalize on market opportunities and continue rewarding investors.
See More
Top High-Yield Pipeline Stocks to Consider
- Enbridge Overview: Enbridge (ENB) ranks among the largest pipeline operators in North America, transporting approximately 30% of North America's crude oil and 40% of U.S. crude oil imports, while also supplying about 20% of the natural gas consumed in the U.S., highlighting its critical role in the energy market.
- Stable Dividend Growth: Enbridge has increased its dividend for 31 consecutive years, currently boasting a dividend yield of 4.93%, with expectations for annual growth of up to 5% in the medium term, providing stable cash flow and long-term appeal for income investors.
- AI-Driven Growth at Energy Transfer: Energy Transfer (ET) operates over 144,000 miles of pipeline and is expected to benefit from partnerships with AI data centers, currently offering a distribution yield of 6.96%, with management targeting long-term annual growth of 3% to 5%.
- Investment Potential of Enterprise Products Partners: Enterprise Products Partners (EPD) is regarded as the gold standard in the midstream energy sector, holding the highest credit rating and generating durable cash flow, with a distribution yield of 5.94%, demonstrating resilience and growth potential even during challenging times.
See More
Energy Transfer: A Reliable Source of Passive Income
- Stable Income Source: As one of the largest midstream companies in the U.S., Energy Transfer effectively insulates itself from volatile oil and gas prices by charging other companies 'tolls' for using its infrastructure, ensuring a steady stream of passive income.
- Tax Advantages: As a master limited partnership (MLP), its distributions blend capital return with income, providing greater tax efficiency than conventional energy stocks, allowing investors to use reported losses to reduce taxable income.
- Distribution and Cash Flow: Although Energy Transfer boasts a forward yield of 7.05%, its total distributions accounted for only 56% of its adjusted distributable cash flow (DCF) in 2025, indicating sustainability and safety in its payouts.
- Investment Return Comparison: To earn $10,000 in annual passive income at a share price of $19, an investment of approximately $141,844 is required for 7,465 shares, while the same investment in the 10-Year Treasury, yielding 4.38%, would only generate $6,213 in annual income.
See More
Energy Transfer Offers Attractive 7.05% Forward Yield
- Stable Cash Flow: Energy Transfer, one of the largest midstream companies in the U.S., boasts a stable cash flow that easily covers its distributions, ensuring a reliable source of passive income for investors.
- High Yield Advantage: The company offers an attractive forward yield of 7.05%, and while this seems high, its total distributions accounted for only 56% of its adjusted distributable cash flow (DCF) in 2025, indicating sustainable payouts.
- Tax Efficiency: As a master limited partnership (MLP), Energy Transfer's distributions blend return of capital with income, providing greater tax efficiency compared to conventional energy stocks, allowing investors to reduce taxable income through reported losses.
- Investment Comparison: To earn $10,000 in annual passive income from Energy Transfer at $19 per share, an investment of 7,465 shares is required, contrasting sharply with the $6,213 annual income from a similar investment in the 10-Year Treasury, highlighting Energy Transfer's investment appeal.
See More
High-Yield Investment Options Amid Tech Stock Surge
- Energy Transition Advantage: Energy Transfer (ET) boasts one of the largest integrated midstream systems in the U.S., with projected spending of $5.5 to $5.9 billion on organic growth projects this year, driving some of the best growth in the midstream sector in the coming years, particularly amid strong natural gas demand.
- Robust Financial Performance: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, holds the highest credit rating with a low leverage of just 3.2x, and is expected to see strong double-digit growth in cash flow and EBITDA next year, despite cutting back on capital expenditures this year to focus on buybacks and debt reduction.
- High Yield Appeal: Western Midstream (WES) stands out with an 8.7% yield in the midstream space, maintaining a leverage of only 3x post-acquisition of Brazos Delaware assets, while targeting distribution growth at a mid-to-low single-digit pace, showcasing a solid growth outlook.
- Diversification Strategy: Western Midstream is actively expanding its produced water business through the acquisition of Aris Water Solutions and the Pathfinder Pipeline project, with a new processing facility expected to come online in Q1 2027, further enhancing its competitive position in the market.
See More
Evertz Technologies Reports Record Annual Revenue of $515.8 Million
- Annual Revenue Growth: Evertz Technologies Ltd achieved record annual revenue of $515.8 million, with international revenue increasing by 16% to $148 million, reflecting strong project deliveries in Western Europe and enhancing its market position.
- Software Services Revenue Increase: Recurring software services and other software revenue rose by 8% year-over-year to $240.7 million, indicating significant progress in the software business, which is expected to further drive overall profitability in the future.
- Cash Flow and Dividend Distribution: Although cash reserves decreased from $111.7 million to $19.1 million primarily due to $136 million in dividends paid, including $75.5 million in special dividends, the company maintains stable operating cash flow with annual cash inflow of $76.2 million.
- Hardware Revenue Challenges: Hardware revenue declined by 1% to $275.1 million, and revenue in the US-Canadian region fell by 2% to $367.8 million, reflecting regional challenges that may impact future profitability.
See More
Analysis of Three High-Yield Pipeline Stocks
- Enbridge Overview: Enbridge ranks as North America's largest pipeline operator, transporting approximately 30% of North America's crude oil and 40% of U.S. crude oil imports, while also being the largest natural gas utility in North America, serving 7.1 million customers, showcasing its strong position in the energy market.
- Stable Dividend Growth: Enbridge has increased its dividend for 31 consecutive years, with a current yield exceeding 5%, and expects to grow its dividend by up to 5% annually in the medium term, making it an ideal choice for income investors seeking stable cash flows.
- Growth Potential of Energy Transfer: Energy Transfer operates over 144,000 miles of pipeline with a forward distribution yield of 7%, targeting annual distribution growth of 3% to 5% in the long term, benefiting from rising natural gas demand driven by artificial intelligence.
- Advantages of Enterprise Products Partners: Enterprise Products Partners is considered the gold standard in the midstream energy sector, boasting the highest credit rating and a 27-year history of distribution growth, currently investing approximately $5.3 billion in capital projects to capitalize on market opportunities and continue rewarding investors.
See More
Top High-Yield Pipeline Stocks to Consider
- Enbridge Overview: Enbridge (ENB) ranks among the largest pipeline operators in North America, transporting approximately 30% of North America's crude oil and 40% of U.S. crude oil imports, while also supplying about 20% of the natural gas consumed in the U.S., highlighting its critical role in the energy market.
- Stable Dividend Growth: Enbridge has increased its dividend for 31 consecutive years, currently boasting a dividend yield of 4.93%, with expectations for annual growth of up to 5% in the medium term, providing stable cash flow and long-term appeal for income investors.
- AI-Driven Growth at Energy Transfer: Energy Transfer (ET) operates over 144,000 miles of pipeline and is expected to benefit from partnerships with AI data centers, currently offering a distribution yield of 6.96%, with management targeting long-term annual growth of 3% to 5%.
- Investment Potential of Enterprise Products Partners: Enterprise Products Partners (EPD) is regarded as the gold standard in the midstream energy sector, holding the highest credit rating and generating durable cash flow, with a distribution yield of 5.94%, demonstrating resilience and growth potential even during challenging times.
See More
Energy Transfer: A Reliable Source of Passive Income
- Stable Income Source: As one of the largest midstream companies in the U.S., Energy Transfer effectively insulates itself from volatile oil and gas prices by charging other companies 'tolls' for using its infrastructure, ensuring a steady stream of passive income.
- Tax Advantages: As a master limited partnership (MLP), its distributions blend capital return with income, providing greater tax efficiency than conventional energy stocks, allowing investors to use reported losses to reduce taxable income.
- Distribution and Cash Flow: Although Energy Transfer boasts a forward yield of 7.05%, its total distributions accounted for only 56% of its adjusted distributable cash flow (DCF) in 2025, indicating sustainability and safety in its payouts.
- Investment Return Comparison: To earn $10,000 in annual passive income at a share price of $19, an investment of approximately $141,844 is required for 7,465 shares, while the same investment in the 10-Year Treasury, yielding 4.38%, would only generate $6,213 in annual income.
See More
Energy Transfer Offers Attractive 7.05% Forward Yield
- Stable Cash Flow: Energy Transfer, one of the largest midstream companies in the U.S., boasts a stable cash flow that easily covers its distributions, ensuring a reliable source of passive income for investors.
- High Yield Advantage: The company offers an attractive forward yield of 7.05%, and while this seems high, its total distributions accounted for only 56% of its adjusted distributable cash flow (DCF) in 2025, indicating sustainable payouts.
- Tax Efficiency: As a master limited partnership (MLP), Energy Transfer's distributions blend return of capital with income, providing greater tax efficiency compared to conventional energy stocks, allowing investors to reduce taxable income through reported losses.
- Investment Comparison: To earn $10,000 in annual passive income from Energy Transfer at $19 per share, an investment of 7,465 shares is required, contrasting sharply with the $6,213 annual income from a similar investment in the 10-Year Treasury, highlighting Energy Transfer's investment appeal.
See More
High-Yield Investment Options Amid Tech Stock Surge
- Energy Transition Advantage: Energy Transfer (ET) boasts one of the largest integrated midstream systems in the U.S., with projected spending of $5.5 to $5.9 billion on organic growth projects this year, driving some of the best growth in the midstream sector in the coming years, particularly amid strong natural gas demand.
- Robust Financial Performance: Enterprise Products Partners (EPD) has increased its distribution for 27 consecutive years, holds the highest credit rating with a low leverage of just 3.2x, and is expected to see strong double-digit growth in cash flow and EBITDA next year, despite cutting back on capital expenditures this year to focus on buybacks and debt reduction.
- High Yield Appeal: Western Midstream (WES) stands out with an 8.7% yield in the midstream space, maintaining a leverage of only 3x post-acquisition of Brazos Delaware assets, while targeting distribution growth at a mid-to-low single-digit pace, showcasing a solid growth outlook.
- Diversification Strategy: Western Midstream is actively expanding its produced water business through the acquisition of Aris Water Solutions and the Pathfinder Pipeline project, with a new processing facility expected to come online in Q1 2027, further enhancing its competitive position in the market.
See More
