Energy Transfer LP (ET) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Energy Transfer LP's Q4 2025 earnings report kept showing a mixed picture. I see large odds for growth, both in terms of EPS and dividends, to remain under pressure. However, a few new catalysts could help the company turn the corner and help to balance the reward/risk curve.
Energy Transfer remains strongly bullish, offering over 33% upside potential and robust distribution coverage amid sector tailwinds. ET benefits from US oil and gas production growth, data center demand, and potential structural commodity price increases due to geopolitical risks. Recent Q4 results showed record $4.18B adjusted EBITDA (+8% YoY), 1.77x DCF coverage, and management guides for $17.45–17.85B FY2026 adjusted EBITDA.
Units of Energy Transfer LP ET have rallied 14.1% in the past three months compared with the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 16% and the Zacks Oil-Energy sector's rally of 19.2%. The oil and gas midstream firm owns a wide network of pipelines across the United States and is pursuing opportunities to serve increasing power loads from new demand centers across its network.
Energy Transfer remains a Strong Buy, offering compelling value and growth after a transformative year marked by robust earnings and operational records. ET's diversified segments, including NGL export dominance and Permian-focused expansion, drive EBITDA growth and position the company at the forefront of the AI and data center economy. Guidance is strong, with 2026 growth capital of $5–$5.5B, mid-teens project returns, and distribution growth of 3–5%, while maintaining a leverage target of 4x–4.5x.
Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Energy Transfer: High-Octane Income From America's Energy 'Toll Road'
Energy Transfer is now fairly valued after a strong price run, with updated intrinsic value at $18.49 and a bull case of $21.33. Q4 2025 earnings showed record volumes across all segments, raised 2026 EBITDA guidance, and added new natural gas projects to the backlog. Distribution growth is robust, with a recent increase to $0.335/unit, and management targeting 3–5% long-term growth, supporting valuation confidence.
Energy Transfer: Another Year Of Comparatively Poor Returns To Investors
Energy Transfer is rated 'Buy' with 30% upside, driven by discounted valuation and aggressive growth in energy transportation. Energy Transfer's 'toll road' model secures stable EBITDA, while AI-driven electricity demand and LNG export expansion underpin long-term growth. Q4 2025 results showed 29.6% revenue growth and an 8% adjusted EBITDA increase, despite EPS missing consensus by $0.11.
ET's Q4 earnings miss estimates, revenues rise 29.6% year over year, new pipeline deals and expansions signal ongoing growth plans.
Energy Transfer LP Common Units (ET) Q4 2025 Earnings Call Transcript