Energy Transfer's January Performance Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 21 2026
0mins
Should l Buy ET?
Source: NASDAQ.COM
- Unit Performance: Energy Transfer's units appreciated by 11.9% in January, which, while below the energy sector's overall 14.4% gain, reflects the company's stability as a midstream operator less reliant on volatile commodity prices.
- Dividend Growth: The company has consistently raised its distributions each quarter, recently increasing the payout from $0.3325 to $0.335 per unit, resulting in an attractive yield of 7.3%, significantly higher than the S&P 500's 1.2%, appealing to income-focused investors.
- Cash Flow Status: In the first nine months of 2025, Energy Transfer generated $8.2 billion in adjusted distributable cash flow against $4.6 billion in distributions, indicating robust cash flow that supports its distribution policy and bolsters investor confidence.
- Market Outlook: Despite a 4.7% decline in unit price over the past year, the total return of 0.3% when factoring in dividends, along with potential price appreciation, positions Energy Transfer as a relatively stable investment in the energy sector, suitable for income-oriented investors.
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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: 19.020
Low
17.00
Averages
20.65
High
23.00
Current: 19.020
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 Prices Surge Amid Iran Conflict, Energy Transfer Thrives
- Surging Energy Prices: The ongoing conflict in Iran has effectively closed the Strait of Hormuz, blocking approximately 20% of global oil supply, which has driven energy prices higher and resulted in a 16% increase in Energy Transfer's stock price in 2026, showcasing its resilience in a volatile market.
- Attractive High Yield: With a current yield of 6.9%, Energy Transfer significantly outperforms the 4.4% yield of 10-year U.S. Treasuries and the 3.4% yield of popular high-yield ETFs, making it a preferred choice for income-focused investors and reinforcing its market position.
- Stable Cash Flow: In 2025, Energy Transfer generated approximately $8.2 billion in distributable cash flow with total distributions of $4.55 billion, resulting in a payout ratio of only 55%, indicating a strong financial cushion that reduces the risk of distribution cuts.
- Growth Potential: The management targets annual distribution increases of 3% to 5%, and despite uncertainties in the Middle East, Energy Transfer appears well-positioned to continue raising distributions in the future, attracting more income-oriented investors.
See More
Investment Potential of Energy Transfer and Enterprise Products
- High Yield and Growth Prospects: Energy Transfer currently offers a 7% dividend yield, showcasing solid growth potential through a cleaned-up balance sheet and strong distribution coverage, particularly benefiting from rising natural gas demand in the Permian Basin where prices are currently low.
- Stable Distribution Growth: Enterprise Products Partners has increased its distribution for 27 consecutive years, currently yielding 5.8%, with annual growth rates between 3% and 4%, reflecting the efficiency and conservativeness of its management team, making it a suitable long-term hold.
- Visible Cash Flows: Both companies primarily operate on a fee-based business model, generating highly visible cash flows that enable them to sustain and increase their robust distributions, appealing to investors seeking stable income.
- Investor-Friendly Environment: With surging power demand from AI data centers, Energy Transfer and Enterprise Products Partners are positioned to capitalize on some of the best growth opportunities in the midstream sector, making them top investment choices right now.
See More
High-Yield Investment in Energy Transfer and Enterprise Products Partners
- Growth Potential of Energy Transfer: Energy Transfer currently offers a 7% dividend yield and has successfully improved its balance sheet over the years, showcasing a strong distribution coverage ratio, with expectations to benefit from rising natural gas demand, particularly in the context of low-priced natural gas resources in the Permian Basin.
- Stable Returns from Enterprise Products: Holding Enterprise Products Partners since 2008, which currently boasts a 5.8% dividend yield and has increased distributions for 27 consecutive years, reflects the management team's conservative and efficient approach, with anticipated annual growth of 3% to 4%.
- Investor-Friendly Industry Environment: The midstream MLP sector is now more investor-friendly than two decades ago, with both Energy Transfer and Enterprise Products Partners leveraging their primarily fee-based business models to generate visible cash flows, allowing them to maintain and increase their robust distributions.
- Future Growth Opportunities: With surging power demand from artificial intelligence data centers, the industry is facing some of the best growth opportunities in years, making investments in Energy Transfer and Enterprise Products Partners a top choice for stable, long-term returns.
See More
Energy Transfer's High Yield Amid Rising Energy Prices
- Yield Advantage: Energy Transfer currently offers a distribution yield of 6.9%, significantly higher than the 4.4% from 10-year U.S. Treasuries and 3.4% from popular high-yield ETFs, maintaining its appeal among income-focused investors in the current economic climate.
- Stable Cash Flow: In 2025, Energy Transfer generated approximately $8.2 billion in distributable cash flow, with total distributions amounting to $4.55 billion and a payout ratio of only 55%, demonstrating its strong financial cushion to sustain distributions even in adverse market conditions.
- Market Impact: The ongoing war in Iran has effectively closed the Strait of Hormuz, impacting about 20% of global oil supply and driving energy prices higher, which has contributed to a 16% increase in Energy Transfer's stock price in 2026.
- Growth Potential: Management is targeting annual distribution increases of 3% to 5%, and despite uncertainties regarding energy price fluctuations, the company appears poised for continued growth, attracting investors seeking stable income.
See More
Energy Stocks Surge Amid Oil Price Volatility
- Oil Price Surge Impact: Oil prices soared over 75% in Q1 due to the war with Iran, driving a more than 35% increase in average energy stocks within the S&P 500, significantly outperforming the nearly 5% decline in the broader market, highlighting the strength of the energy sector.
- Stability of Energy Transfer: Energy Transfer (ET) has risen over 15% year-to-date, although it gained only about 3% over the past 12 months; with 90% of its earnings from stable fee-based sources, it maintains profitability amid oil price fluctuations while offering a nearly 7% distribution yield.
- Growth Potential of Oneok: Oneok (OKE) has increased over 20% this year, despite a nearly 10% decline over the past year; with 85%-90% of its earnings from fee-based sources, it ensures relatively stable cash flow and plans for a 3%-4% annual dividend increase, demonstrating long-term investment value.
- Low-Risk Investment Opportunities: The strong performance of Energy Transfer and Oneok in the energy sector positions them as compelling investment opportunities in April, as their stable cash flows and high-yielding dividend strategies enable them to thrive even if oil prices decline following a resolution to the conflict with Iran.
See More
Investment Outlook for Energy Stocks Amid Market Turbulence
- Complex Energy Market: The ongoing war in Iran has disrupted oil and material flows through the Strait of Hormuz, affecting about one-fifth of global oil supply, driving up prices and causing shortages in some regions, which requires investors to navigate this unpredictable landscape cautiously.
- Growth Potential of Energy Transfer: Energy Transfer (ET), one of the largest midstream companies in the U.S., with over 140,000 miles of pipelines and storage facilities, is projected to see adjusted EBITDA growth of 9% to 12% in 2026, supporting its 6.8% dividend yield and bolstering investor confidence.
- Stability of ExxonMobil: As the largest publicly traded oil company, ExxonMobil (XOM) expects to generate $145 billion in surplus cash flow by 2030, backed by its 43 consecutive years of dividend payments and a strong balance sheet, ensuring stability amid market fluctuations.
- Growth Strategy of Enterprise Products Partners: Enterprise Products Partners (EPD) boasts over 50,000 miles of infrastructure in North America, with expected adjusted EBITDA growth of 3% to 5% in 2026 and accelerating to about 10% in 2027, ensuring continued dividend growth and attracting income-seeking investors.
See More
Energy Prices Surge Amid Iran Conflict, Energy Transfer Thrives
- Surging Energy Prices: The ongoing conflict in Iran has effectively closed the Strait of Hormuz, blocking approximately 20% of global oil supply, which has driven energy prices higher and resulted in a 16% increase in Energy Transfer's stock price in 2026, showcasing its resilience in a volatile market.
- Attractive High Yield: With a current yield of 6.9%, Energy Transfer significantly outperforms the 4.4% yield of 10-year U.S. Treasuries and the 3.4% yield of popular high-yield ETFs, making it a preferred choice for income-focused investors and reinforcing its market position.
- Stable Cash Flow: In 2025, Energy Transfer generated approximately $8.2 billion in distributable cash flow with total distributions of $4.55 billion, resulting in a payout ratio of only 55%, indicating a strong financial cushion that reduces the risk of distribution cuts.
- Growth Potential: The management targets annual distribution increases of 3% to 5%, and despite uncertainties in the Middle East, Energy Transfer appears well-positioned to continue raising distributions in the future, attracting more income-oriented investors.
See More
Investment Potential of Energy Transfer and Enterprise Products
- High Yield and Growth Prospects: Energy Transfer currently offers a 7% dividend yield, showcasing solid growth potential through a cleaned-up balance sheet and strong distribution coverage, particularly benefiting from rising natural gas demand in the Permian Basin where prices are currently low.
- Stable Distribution Growth: Enterprise Products Partners has increased its distribution for 27 consecutive years, currently yielding 5.8%, with annual growth rates between 3% and 4%, reflecting the efficiency and conservativeness of its management team, making it a suitable long-term hold.
- Visible Cash Flows: Both companies primarily operate on a fee-based business model, generating highly visible cash flows that enable them to sustain and increase their robust distributions, appealing to investors seeking stable income.
- Investor-Friendly Environment: With surging power demand from AI data centers, Energy Transfer and Enterprise Products Partners are positioned to capitalize on some of the best growth opportunities in the midstream sector, making them top investment choices right now.
See More
High-Yield Investment in Energy Transfer and Enterprise Products Partners
- Growth Potential of Energy Transfer: Energy Transfer currently offers a 7% dividend yield and has successfully improved its balance sheet over the years, showcasing a strong distribution coverage ratio, with expectations to benefit from rising natural gas demand, particularly in the context of low-priced natural gas resources in the Permian Basin.
- Stable Returns from Enterprise Products: Holding Enterprise Products Partners since 2008, which currently boasts a 5.8% dividend yield and has increased distributions for 27 consecutive years, reflects the management team's conservative and efficient approach, with anticipated annual growth of 3% to 4%.
- Investor-Friendly Industry Environment: The midstream MLP sector is now more investor-friendly than two decades ago, with both Energy Transfer and Enterprise Products Partners leveraging their primarily fee-based business models to generate visible cash flows, allowing them to maintain and increase their robust distributions.
- Future Growth Opportunities: With surging power demand from artificial intelligence data centers, the industry is facing some of the best growth opportunities in years, making investments in Energy Transfer and Enterprise Products Partners a top choice for stable, long-term returns.
See More
Energy Transfer's High Yield Amid Rising Energy Prices
- Yield Advantage: Energy Transfer currently offers a distribution yield of 6.9%, significantly higher than the 4.4% from 10-year U.S. Treasuries and 3.4% from popular high-yield ETFs, maintaining its appeal among income-focused investors in the current economic climate.
- Stable Cash Flow: In 2025, Energy Transfer generated approximately $8.2 billion in distributable cash flow, with total distributions amounting to $4.55 billion and a payout ratio of only 55%, demonstrating its strong financial cushion to sustain distributions even in adverse market conditions.
- Market Impact: The ongoing war in Iran has effectively closed the Strait of Hormuz, impacting about 20% of global oil supply and driving energy prices higher, which has contributed to a 16% increase in Energy Transfer's stock price in 2026.
- Growth Potential: Management is targeting annual distribution increases of 3% to 5%, and despite uncertainties regarding energy price fluctuations, the company appears poised for continued growth, attracting investors seeking stable income.
See More
Energy Stocks Surge Amid Oil Price Volatility
- Oil Price Surge Impact: Oil prices soared over 75% in Q1 due to the war with Iran, driving a more than 35% increase in average energy stocks within the S&P 500, significantly outperforming the nearly 5% decline in the broader market, highlighting the strength of the energy sector.
- Stability of Energy Transfer: Energy Transfer (ET) has risen over 15% year-to-date, although it gained only about 3% over the past 12 months; with 90% of its earnings from stable fee-based sources, it maintains profitability amid oil price fluctuations while offering a nearly 7% distribution yield.
- Growth Potential of Oneok: Oneok (OKE) has increased over 20% this year, despite a nearly 10% decline over the past year; with 85%-90% of its earnings from fee-based sources, it ensures relatively stable cash flow and plans for a 3%-4% annual dividend increase, demonstrating long-term investment value.
- Low-Risk Investment Opportunities: The strong performance of Energy Transfer and Oneok in the energy sector positions them as compelling investment opportunities in April, as their stable cash flows and high-yielding dividend strategies enable them to thrive even if oil prices decline following a resolution to the conflict with Iran.
See More
Investment Outlook for Energy Stocks Amid Market Turbulence
- Complex Energy Market: The ongoing war in Iran has disrupted oil and material flows through the Strait of Hormuz, affecting about one-fifth of global oil supply, driving up prices and causing shortages in some regions, which requires investors to navigate this unpredictable landscape cautiously.
- Growth Potential of Energy Transfer: Energy Transfer (ET), one of the largest midstream companies in the U.S., with over 140,000 miles of pipelines and storage facilities, is projected to see adjusted EBITDA growth of 9% to 12% in 2026, supporting its 6.8% dividend yield and bolstering investor confidence.
- Stability of ExxonMobil: As the largest publicly traded oil company, ExxonMobil (XOM) expects to generate $145 billion in surplus cash flow by 2030, backed by its 43 consecutive years of dividend payments and a strong balance sheet, ensuring stability amid market fluctuations.
- Growth Strategy of Enterprise Products Partners: Enterprise Products Partners (EPD) boasts over 50,000 miles of infrastructure in North America, with expected adjusted EBITDA growth of 3% to 5% in 2026 and accelerating to about 10% in 2027, ensuring continued dividend growth and attracting income-seeking investors.
See More
