Energy Transfer Starts Strong in 2026 with 14% Stock Price Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy ET?
Source: Fool
- Stock Price Surge: Energy Transfer's stock has risen approximately 14% as of now, indicating strong market confidence in its future growth, reflecting investor attraction to its forward yield of 7.2%.
- Project Progress: The Hugh Brison pipeline project in the Permian Basin is 75% complete, with phase one expected to come online by year-end, further enhancing the company's growth potential.
- Strong Financial Performance: In Q4, EBITDA increased by 8% year-over-year to $4.18 billion, benefiting from a favorable regulatory ruling on NGL pipeline pricing that contributed an additional $56 million, showcasing the company's competitive edge in pricing.
- Optimistic Outlook: The company raised its 2026 EBITDA forecast to a range of $17.45 billion to $17.85 billion, reflecting the positive impact of its subsidiary USA Compression's acquisition, with expected future distributions growing at a rate of 3% to 5%.
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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: 18.900
Low
17.00
Averages
20.65
High
23.00
Current: 18.900
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.
Energy Transfer Starts Strong in 2026 with 14% Stock Price Increase
- Stock Price Surge: Energy Transfer's stock has risen approximately 14% as of now, indicating strong market confidence in its future growth, reflecting investor attraction to its forward yield of 7.2%.
- Project Progress: The Hugh Brison pipeline project in the Permian Basin is 75% complete, with phase one expected to come online by year-end, further enhancing the company's growth potential.
- Strong Financial Performance: In Q4, EBITDA increased by 8% year-over-year to $4.18 billion, benefiting from a favorable regulatory ruling on NGL pipeline pricing that contributed an additional $56 million, showcasing the company's competitive edge in pricing.
- Optimistic Outlook: The company raised its 2026 EBITDA forecast to a range of $17.45 billion to $17.85 billion, reflecting the positive impact of its subsidiary USA Compression's acquisition, with expected future distributions growing at a rate of 3% to 5%.
See More
Investment Comparison: Energy Transfer vs. Enterprise Products Partners
- Financial Metrics Comparison: Energy Transfer boasts a current distribution yield of 7.1% with a coverage ratio of 1.8x, and while its leverage ratio stands at 4.0-4.5x, it remains within target range, indicating stable cash flow and dividend capacity, making it appealing for income-seeking investors.
- Growth Potential Analysis: Enterprise Products Partners is nearing the end of a multi-year capital deployment cycle initiated in 2022, with an expected investment of $2.5 billion to $2.9 billion in expansion projects this year, which will significantly boost its free cash flow and enhance future distribution capabilities.
- Expansion Plans: Energy Transfer plans to invest $5 billion to $5.5 billion in growth capital projects in 2023, with several major pipeline expansions set to enter commercial service by 2030, supporting its annual distribution growth of 3% to 5%.
- Investment Recommendation: While both are excellent income stock investments, Energy Transfer stands out as the better dividend investment this year due to its lower valuation and clearer long-term growth prospects, potentially yielding higher total returns in 2026 and beyond.
See More
Comparison of Dividend Yields in Energy Midstream Giants
- Dividend Yield Analysis: Energy Transfer currently offers a dividend yield of 7.1%, surpassing Enterprise Products Partners' 6%, despite having a distribution coverage ratio of 1.8x, indicating stronger cash flow stability that appeals to income-seeking investors.
- Capital Expenditure Plans: Enterprise Products Partners plans to invest between $2.5 billion and $2.9 billion in expansion projects in 2023, which is expected to significantly boost free cash flow and support its 27-year streak of dividend growth, enhancing its long-term investment appeal.
- Expansion Project Progress: Energy Transfer anticipates investing $5 billion to $5.5 billion in growth capital projects in 2023, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to drive annual dividend growth of 3% to 5%.
- Market Competitiveness: While Energy Transfer's lower valuation results in a higher dividend yield, Enterprise Products Partners maintains competitiveness in the market through its diversified operations and stable cash flow, attracting investors with varying risk appetites.
See More
Energy Transfer's Distribution Continues to Grow
- Earnings Report: Energy Transfer reported Q4 earnings per share of $0.25, missing the $0.36 consensus estimate, yet the stock price fell less than 1%, indicating market confidence in the company's fundamentals.
- Attractive Distribution: The company boasts a distribution yield of 7.2%, with a more than 3% year-over-year increase announced in January, while targeting a long-term annual growth rate of 3% to 5%, making it appealing for income investors.
- Performance Growth: Adjusted EBITDA reached $16 billion, setting a new record for the partnership, and the 2026 EBITDA guidance was raised to between $17.45 billion and $17.85 billion, reflecting the company's strong operational foundation.
- Market Expansion: Energy Transfer set new records in natural gas liquids fractionation and crude oil transportation volumes, and is poised for future growth through its Flexport NGL export project and new Permian Basin processing plants, underscoring its industry leadership.
See More
Energy Transfer LP Defies Earnings Miss with Strong Fundamentals
- Attractive Distribution Growth: Energy Transfer's distribution yield stands at an impressive 7.2%, with a year-over-year increase of over 3% announced in January, appealing to income investors, while the company targets a long-term annual growth rate of 3% to 5%.
- Strong Underlying Business: Despite missing Q4 earnings expectations, Energy Transfer reported an adjusted EBITDA of $16 billion, setting a new partnership record, and raised its 2026 EBITDA guidance to between $17.45 billion and $17.85 billion, indicating robust business fundamentals.
- Significant Growth Drivers: The company is poised for growth through its Flexport NGL export project and new Permian Basin processing plants, with major contracts with data centers like Oracle further solidifying its market position.
- Diverse Growth Factors: Co-CEO highlighted that, in addition to data centers, population growth and manufacturing expansion are key drivers of the company's growth, making it an attractive option for income investors despite not being classified as a high-growth stock.
See More
Cushing Asset Management Reduces Stake in Hess Midstream
- Share Reduction Details: According to a SEC filing dated January 27, 2026, Cushing Asset Management sold 960,000 shares of Hess Midstream in Q4 2025, with an estimated transaction value of $32.28 million, indicating the fund's strategic response to market fluctuations.
- Stake Decrease: Following this sale, Cushing's stake in Hess Midstream has decreased to approximately 2.69%, reflecting a diminished confidence in the asset and potentially impacting the overall stability of its investment portfolio.
- Market Performance Analysis: As of January 26, 2026, Hess Midstream shares were priced at $35.13, reflecting a year-over-year decline of approximately 5.7% and underperforming the S&P 500 by 22.1 percentage points, indicating relative weakness in the market.
- Investor Focus Points: Hess Midstream is recognized for its stable cash flow and a dividend yield of 7.94%, prompting investors to monitor its cash flow coverage and debt management to assess its attractiveness as an income-focused infrastructure investment.
See More
Energy Transfer Starts Strong in 2026 with 14% Stock Price Increase
- Stock Price Surge: Energy Transfer's stock has risen approximately 14% as of now, indicating strong market confidence in its future growth, reflecting investor attraction to its forward yield of 7.2%.
- Project Progress: The Hugh Brison pipeline project in the Permian Basin is 75% complete, with phase one expected to come online by year-end, further enhancing the company's growth potential.
- Strong Financial Performance: In Q4, EBITDA increased by 8% year-over-year to $4.18 billion, benefiting from a favorable regulatory ruling on NGL pipeline pricing that contributed an additional $56 million, showcasing the company's competitive edge in pricing.
- Optimistic Outlook: The company raised its 2026 EBITDA forecast to a range of $17.45 billion to $17.85 billion, reflecting the positive impact of its subsidiary USA Compression's acquisition, with expected future distributions growing at a rate of 3% to 5%.
See More
Investment Comparison: Energy Transfer vs. Enterprise Products Partners
- Financial Metrics Comparison: Energy Transfer boasts a current distribution yield of 7.1% with a coverage ratio of 1.8x, and while its leverage ratio stands at 4.0-4.5x, it remains within target range, indicating stable cash flow and dividend capacity, making it appealing for income-seeking investors.
- Growth Potential Analysis: Enterprise Products Partners is nearing the end of a multi-year capital deployment cycle initiated in 2022, with an expected investment of $2.5 billion to $2.9 billion in expansion projects this year, which will significantly boost its free cash flow and enhance future distribution capabilities.
- Expansion Plans: Energy Transfer plans to invest $5 billion to $5.5 billion in growth capital projects in 2023, with several major pipeline expansions set to enter commercial service by 2030, supporting its annual distribution growth of 3% to 5%.
- Investment Recommendation: While both are excellent income stock investments, Energy Transfer stands out as the better dividend investment this year due to its lower valuation and clearer long-term growth prospects, potentially yielding higher total returns in 2026 and beyond.
See More
Comparison of Dividend Yields in Energy Midstream Giants
- Dividend Yield Analysis: Energy Transfer currently offers a dividend yield of 7.1%, surpassing Enterprise Products Partners' 6%, despite having a distribution coverage ratio of 1.8x, indicating stronger cash flow stability that appeals to income-seeking investors.
- Capital Expenditure Plans: Enterprise Products Partners plans to invest between $2.5 billion and $2.9 billion in expansion projects in 2023, which is expected to significantly boost free cash flow and support its 27-year streak of dividend growth, enhancing its long-term investment appeal.
- Expansion Project Progress: Energy Transfer anticipates investing $5 billion to $5.5 billion in growth capital projects in 2023, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, which are expected to drive annual dividend growth of 3% to 5%.
- Market Competitiveness: While Energy Transfer's lower valuation results in a higher dividend yield, Enterprise Products Partners maintains competitiveness in the market through its diversified operations and stable cash flow, attracting investors with varying risk appetites.
See More
Energy Transfer's Distribution Continues to Grow
- Earnings Report: Energy Transfer reported Q4 earnings per share of $0.25, missing the $0.36 consensus estimate, yet the stock price fell less than 1%, indicating market confidence in the company's fundamentals.
- Attractive Distribution: The company boasts a distribution yield of 7.2%, with a more than 3% year-over-year increase announced in January, while targeting a long-term annual growth rate of 3% to 5%, making it appealing for income investors.
- Performance Growth: Adjusted EBITDA reached $16 billion, setting a new record for the partnership, and the 2026 EBITDA guidance was raised to between $17.45 billion and $17.85 billion, reflecting the company's strong operational foundation.
- Market Expansion: Energy Transfer set new records in natural gas liquids fractionation and crude oil transportation volumes, and is poised for future growth through its Flexport NGL export project and new Permian Basin processing plants, underscoring its industry leadership.
See More
Energy Transfer LP Defies Earnings Miss with Strong Fundamentals
- Attractive Distribution Growth: Energy Transfer's distribution yield stands at an impressive 7.2%, with a year-over-year increase of over 3% announced in January, appealing to income investors, while the company targets a long-term annual growth rate of 3% to 5%.
- Strong Underlying Business: Despite missing Q4 earnings expectations, Energy Transfer reported an adjusted EBITDA of $16 billion, setting a new partnership record, and raised its 2026 EBITDA guidance to between $17.45 billion and $17.85 billion, indicating robust business fundamentals.
- Significant Growth Drivers: The company is poised for growth through its Flexport NGL export project and new Permian Basin processing plants, with major contracts with data centers like Oracle further solidifying its market position.
- Diverse Growth Factors: Co-CEO highlighted that, in addition to data centers, population growth and manufacturing expansion are key drivers of the company's growth, making it an attractive option for income investors despite not being classified as a high-growth stock.
See More
Cushing Asset Management Reduces Stake in Hess Midstream
- Share Reduction Details: According to a SEC filing dated January 27, 2026, Cushing Asset Management sold 960,000 shares of Hess Midstream in Q4 2025, with an estimated transaction value of $32.28 million, indicating the fund's strategic response to market fluctuations.
- Stake Decrease: Following this sale, Cushing's stake in Hess Midstream has decreased to approximately 2.69%, reflecting a diminished confidence in the asset and potentially impacting the overall stability of its investment portfolio.
- Market Performance Analysis: As of January 26, 2026, Hess Midstream shares were priced at $35.13, reflecting a year-over-year decline of approximately 5.7% and underperforming the S&P 500 by 22.1 percentage points, indicating relative weakness in the market.
- Investor Focus Points: Hess Midstream is recognized for its stable cash flow and a dividend yield of 7.94%, prompting investors to monitor its cash flow coverage and debt management to assess its attractiveness as an income-focused infrastructure investment.
See More
