Energy Transfer's Cash Flow Covers 1.8x Distribution, Positive Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Cash Flow Coverage: Energy Transfer's distributable cash flow covered its distribution by 1.8 times in the first nine months of 2025, indicating strong financial health that could attract income-seeking investors.
- Capital Investment Plans: The company has $5.5 billion in capital investment projects planned for 2026, expected to support distribution growth of 3% to 5%, reflecting confidence in future revenue growth.
- Historical Issues Impact: Despite strong current cash flow, past distribution cuts in 2020 and 2016 may raise trust concerns among conservative investors, potentially affecting their investment decisions.
- Market Competition: Energy Transfer faces competition from other midstream companies like Enterprise Products Partners and Enbridge, which have demonstrated better distribution stability, potentially attracting more conservative investors.
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: 17.950
Low
17.00
Averages
20.65
High
23.00
Current: 17.950
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.
