Energy Transfer's Distribution Continues to Grow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy ET?
Source: NASDAQ.COM
- 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.
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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: 19.590
Low
17.00
Averages
20.65
High
23.00
Current: 19.590
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 Stocks Show Long-Term Potential in AI Investments
- Energy Transition Opportunity: Energy Transfer, a diversified midstream energy company, is strategically positioning itself to supply natural gas to meet the increasing electricity demands of data centers, with one-third of new gas-fired power capacity in the U.S. expected to support AI applications, driving future growth.
- Nuclear Power Advantage: Constellation Energy, the largest clean and low-carbon energy provider in the U.S., leverages its nuclear power business to provide stable baseload power for data centers, further solidified by recent 20-year power purchase agreements with Meta and Microsoft, enhancing its market position in the AI sector.
- Renewable Energy Potential: Enbridge is tapping into AI-driven electricity demand through a long-term contract with Meta for 100% of the renewable energy produced by its Texas solar project, showcasing its potential while collaborating with Microsoft to improve pipeline detection and energy transportation efficiency.
- Investment Appeal: All three companies present attractive investment opportunities, with Energy Transfer offering a 6.8% dividend yield, Constellation's stock appreciating 550% over the past five years, and Enbridge providing a 5.2% yield, making them appealing choices for income-focused investors.
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Analysis of Stable Cash Flows in Energy Companies
- Investment in Growth: Energy Transfer plans to invest over $5 billion in growth capital projects in 2023, which is expected to enhance its cash flow and support an annual dividend increase of 3% to 5%, thereby solidifying its position in the energy market.
- Stable Revenue Sources: Enbridge generates 98% of its cash flow from contracted and take-or-pay assets, producing 12.5 billion CAD (approximately $9 billion) in distributable cash flow last year, demonstrating its high predictability and stability, which supports its 31 consecutive years of dividend increases.
- Cash Flow Expectations: Kinder Morgan anticipates nearly $6.4 billion in cash flow from operations this year, planning to pay out about $2.7 billion in dividends while retaining the rest for pipeline expansion, which is expected to continue driving its 3.5% high-yield dividend growth.
- Long-Term Contract Advantage: Pipeline companies benefit from long-term contracts and government-regulated rate structures, allowing them to maintain stable profitability even after fluctuations in oil prices, making them ideal for investors seeking long-term income.
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Midstream Energy Companies Benefit from Rising Oil Prices
- Energy Transition Investment: Energy Transfer plans to invest over $5 billion in growth capital projects in 2023, which will drive cash flow growth and support annual dividend increases of 3% to 5%, enhancing its competitive position in the market.
- Stable Cash Flow: Enbridge generated CAD 12.5 billion (approximately $9 billion) in distributable cash flow last year, with 98% of its cash flows being contracted or take-or-pay, ensuring financial stability and continued dividend growth for the coming years.
- Pipeline Expansion Plans: Kinder Morgan expects to generate nearly $6.4 billion in cash flow from operations this year and plans to pay out about $2.7 billion in dividends while retaining the rest for pipeline expansion, with $10 billion in growth capital projects expected to be completed by 2030.
- Long-Term Contract Advantage: These midstream companies ensure cash flow stability through long-term contracts and government-regulated rate structures, allowing them to remain profitable even after fluctuations in oil prices, making them ideal for long-term investors.
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Analysis of High-Yield Pipeline Stocks for Investors
- Pipeline Business Model: Midstream companies operate a straightforward toll road model by controlling the infrastructure for natural gas and crude oil, which insulates them from volatile commodity prices and generates substantial cash flow, enabling higher yields than most conventional energy firms.
- Enterprise Products Performance: Enterprise Products Partners (EPD) achieved a distributable cash flow of $7.9 billion in 2025, easily covering its $4.8 billion in distributions, and has increased its payouts for 28 consecutive years, indicating strong financial health and long-term growth potential.
- Energy Transfer Expansion: Energy Transfer (ET) has aggressively acquired smaller midstream players, now operating over 140,000 miles of pipeline, with an adjusted distributable cash flow of $8.2 billion in 2025 covering $4.6 billion in distributions, suggesting its capability to continue raising distributions in the future.
- Enbridge Stability: Enbridge (ENB), as a non-MLP company, operates over 70,000 miles of pipeline, transporting 30% of North America's crude oil and 20% of U.S. natural gas, with a forward dividend yield of 5.2% and a 31-year history of payout increases, showcasing its competitiveness and stability in the market.
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Analysis of High-Yield Pipeline Stocks for Investors
- Tax Efficiency Advantage: Enterprise Products and Energy Transfer, as master limited partnerships (MLPs), combine capital return with their income to provide tax-efficient distributions, reducing tax burdens for investors and making them suitable for long-term investment.
- Robust Cash Flow: In 2025, Enterprise Products generated $7.9 billion in operational distributable cash flow (DCF), covering $4.8 billion in distributions, while Energy Transfer delivered an adjusted DCF of $8.2 billion to cover $4.6 billion in distributions, indicating both companies' ability to sustain and increase distributions.
- Market Expansion Potential: Both companies are expanding operations in the Permian Basin and other resource-rich areas, with increased overseas exports of natural gas products expected to enhance market share and profitability, and their current price-to-earnings ratios are relatively low at 14 times and 13 times, respectively.
- Stable Dividend Record: Enbridge offers a forward dividend yield of 5.2% and has raised its payout for 31 consecutive years; although its earnings and dividends may face short-term pressure from a stronger dollar, it still appears reasonably valued with growth potential in the long term.
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- Ares Capital Dividend Stability: Ares Capital (NASDAQ: ARCC) has maintained stable or growing dividends for over 16 years, currently yielding 10.7%, supported by a substantial $29.5 billion investment portfolio across 600 companies, ensuring the sustainability and stability of its payouts.
- Energy Transfer Growth Potential: Energy Transfer (NYSE: ET) offers a 6.9% distribution yield and has increased its payout every quarter since the end of 2021, aiming for a 3% to 5% annual increase, with 90% of its annual earnings derived from stable fee-based sources, ensuring sustainable distributions.
- Starwood Property Highest Yield: Starwood Property Trust (NYSE: STWD) boasts the highest yield at 11%, having delivered stable dividends for over a decade, with a diversified investment strategy that includes a $2.2 billion acquisition of Fundamental Income Properties, enhancing its future earnings capacity.
- Attractive High-Yield Stocks: Ares Capital, Energy Transfer, and Starwood Property offer ultra-high-yielding income streams, with solid records of stable dividends and growth potential, making them ideal choices for income investors, especially in the context of recent stock price corrections.
See More
Energy Stocks Show Long-Term Potential in AI Investments
- Energy Transition Opportunity: Energy Transfer, a diversified midstream energy company, is strategically positioning itself to supply natural gas to meet the increasing electricity demands of data centers, with one-third of new gas-fired power capacity in the U.S. expected to support AI applications, driving future growth.
- Nuclear Power Advantage: Constellation Energy, the largest clean and low-carbon energy provider in the U.S., leverages its nuclear power business to provide stable baseload power for data centers, further solidified by recent 20-year power purchase agreements with Meta and Microsoft, enhancing its market position in the AI sector.
- Renewable Energy Potential: Enbridge is tapping into AI-driven electricity demand through a long-term contract with Meta for 100% of the renewable energy produced by its Texas solar project, showcasing its potential while collaborating with Microsoft to improve pipeline detection and energy transportation efficiency.
- Investment Appeal: All three companies present attractive investment opportunities, with Energy Transfer offering a 6.8% dividend yield, Constellation's stock appreciating 550% over the past five years, and Enbridge providing a 5.2% yield, making them appealing choices for income-focused investors.
See More
Analysis of Stable Cash Flows in Energy Companies
- Investment in Growth: Energy Transfer plans to invest over $5 billion in growth capital projects in 2023, which is expected to enhance its cash flow and support an annual dividend increase of 3% to 5%, thereby solidifying its position in the energy market.
- Stable Revenue Sources: Enbridge generates 98% of its cash flow from contracted and take-or-pay assets, producing 12.5 billion CAD (approximately $9 billion) in distributable cash flow last year, demonstrating its high predictability and stability, which supports its 31 consecutive years of dividend increases.
- Cash Flow Expectations: Kinder Morgan anticipates nearly $6.4 billion in cash flow from operations this year, planning to pay out about $2.7 billion in dividends while retaining the rest for pipeline expansion, which is expected to continue driving its 3.5% high-yield dividend growth.
- Long-Term Contract Advantage: Pipeline companies benefit from long-term contracts and government-regulated rate structures, allowing them to maintain stable profitability even after fluctuations in oil prices, making them ideal for investors seeking long-term income.
See More
Midstream Energy Companies Benefit from Rising Oil Prices
- Energy Transition Investment: Energy Transfer plans to invest over $5 billion in growth capital projects in 2023, which will drive cash flow growth and support annual dividend increases of 3% to 5%, enhancing its competitive position in the market.
- Stable Cash Flow: Enbridge generated CAD 12.5 billion (approximately $9 billion) in distributable cash flow last year, with 98% of its cash flows being contracted or take-or-pay, ensuring financial stability and continued dividend growth for the coming years.
- Pipeline Expansion Plans: Kinder Morgan expects to generate nearly $6.4 billion in cash flow from operations this year and plans to pay out about $2.7 billion in dividends while retaining the rest for pipeline expansion, with $10 billion in growth capital projects expected to be completed by 2030.
- Long-Term Contract Advantage: These midstream companies ensure cash flow stability through long-term contracts and government-regulated rate structures, allowing them to remain profitable even after fluctuations in oil prices, making them ideal for long-term investors.
See More
Analysis of High-Yield Pipeline Stocks for Investors
- Pipeline Business Model: Midstream companies operate a straightforward toll road model by controlling the infrastructure for natural gas and crude oil, which insulates them from volatile commodity prices and generates substantial cash flow, enabling higher yields than most conventional energy firms.
- Enterprise Products Performance: Enterprise Products Partners (EPD) achieved a distributable cash flow of $7.9 billion in 2025, easily covering its $4.8 billion in distributions, and has increased its payouts for 28 consecutive years, indicating strong financial health and long-term growth potential.
- Energy Transfer Expansion: Energy Transfer (ET) has aggressively acquired smaller midstream players, now operating over 140,000 miles of pipeline, with an adjusted distributable cash flow of $8.2 billion in 2025 covering $4.6 billion in distributions, suggesting its capability to continue raising distributions in the future.
- Enbridge Stability: Enbridge (ENB), as a non-MLP company, operates over 70,000 miles of pipeline, transporting 30% of North America's crude oil and 20% of U.S. natural gas, with a forward dividend yield of 5.2% and a 31-year history of payout increases, showcasing its competitiveness and stability in the market.
See More
Analysis of High-Yield Pipeline Stocks for Investors
- Tax Efficiency Advantage: Enterprise Products and Energy Transfer, as master limited partnerships (MLPs), combine capital return with their income to provide tax-efficient distributions, reducing tax burdens for investors and making them suitable for long-term investment.
- Robust Cash Flow: In 2025, Enterprise Products generated $7.9 billion in operational distributable cash flow (DCF), covering $4.8 billion in distributions, while Energy Transfer delivered an adjusted DCF of $8.2 billion to cover $4.6 billion in distributions, indicating both companies' ability to sustain and increase distributions.
- Market Expansion Potential: Both companies are expanding operations in the Permian Basin and other resource-rich areas, with increased overseas exports of natural gas products expected to enhance market share and profitability, and their current price-to-earnings ratios are relatively low at 14 times and 13 times, respectively.
- Stable Dividend Record: Enbridge offers a forward dividend yield of 5.2% and has raised its payout for 31 consecutive years; although its earnings and dividends may face short-term pressure from a stronger dollar, it still appears reasonably valued with growth potential in the long term.
See More
Analysis of High-Yield Stock Investment Opportunities
- Ares Capital Dividend Stability: Ares Capital (NASDAQ: ARCC) has maintained stable or growing dividends for over 16 years, currently yielding 10.7%, supported by a substantial $29.5 billion investment portfolio across 600 companies, ensuring the sustainability and stability of its payouts.
- Energy Transfer Growth Potential: Energy Transfer (NYSE: ET) offers a 6.9% distribution yield and has increased its payout every quarter since the end of 2021, aiming for a 3% to 5% annual increase, with 90% of its annual earnings derived from stable fee-based sources, ensuring sustainable distributions.
- Starwood Property Highest Yield: Starwood Property Trust (NYSE: STWD) boasts the highest yield at 11%, having delivered stable dividends for over a decade, with a diversified investment strategy that includes a $2.2 billion acquisition of Fundamental Income Properties, enhancing its future earnings capacity.
- Attractive High-Yield Stocks: Ares Capital, Energy Transfer, and Starwood Property offer ultra-high-yielding income streams, with solid records of stable dividends and growth potential, making them ideal choices for income investors, especially in the context of recent stock price corrections.
See More
