Energy Transfer LP Common Units representing limited partner interests
ET
$18.93
-0.47%
Energy Transfer LP is a diversified midstream energy firm operating in the Oil & Gas Midstream sector. It is a major player with a vast network handling natural gas, NGLs, crude oil, and refined products from wellhead to market.
ET
Energy Transfer LP Common Units representing limited partner interests
$18.93
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Investment Opinion: Should I buy ET Today?
Based on a synthesis of the provided data, the objective assessment for Energy Transfer (ET) is a Buy for income-oriented investors with a moderate risk tolerance. The recommendation is grounded in its strong cash flow generation supporting a high yield, reasonable valuation multiples, and positive operational momentum. However, this rating is tempered by the acknowledgment of its significant leverage and the cyclical nature of its industry.
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ET 12-Month Price Forecast
The analysis leans bullish due to ET's compelling income profile and solid operational trends, but confidence is moderated due to its high debt load and the stock trading near its yearly high, which may cap short-term gains.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Energy Transfer LP Common Units representing limited partner interests's 12-month outlook, with a consensus price target around $24.61 and implied upside of +30.0% versus the current price.
Average Target
$24.61
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$15 - $25
Analyst target range
No sufficient analyst coverage available.
Bulls vs Bears: ET Investment Factors
ET presents a compelling mix of strong fundamentals, attractive income, and positive momentum, balanced against a leveraged balance sheet and sector-specific risks. The stock's recent performance and valuation suggest it is fairly priced for its growth profile. The primary appeal is its high, well-supported yield within a stable fee-based business model.
Bullish
- Strong Revenue & Earnings Growth: Q4 revenue up 14.7% YoY, EPS increased from $0.29 to $0.40.
- Robust Free Cash Flow: Annual FCF of $3.85B supports high dividend yield of ~7.85%.
- Favorable Valuation Multiples: P/E of 12.28 and P/S of 0.73 suggest reasonable valuation.
- Positive Market Momentum: Stock up 17% over 3 months, trading near 52-week high.
Bearish
- High Debt Load: Debt-to-equity ratio of 2.08 indicates significant financial leverage.
- Cyclical & Regulatory Risks: Midstream sector exposed to commodity prices and policy changes.
- High Dividend Payout Ratio: Payout ratio of 96.4% leaves limited room for error.
- Price Near Yearly High: Trading at 97% of 52-week high may limit near-term upside.
ET Technical Analysis
The stock has demonstrated a strong uptrend over the past six months, with the price rising from approximately $16.92 in early October 2025 to $19.30 by March 31, 2026. This represents a significant gain, supported by a 17.04% increase over the last three months and a 14.07% increase over the last six months. Short-term performance shows a 2.44% gain over the past month, which notably outperformed the broader market as indicated by a relative strength of +7.69 against the S&P 500. The current price of $19.30 is near the upper end of its 52-week range of $14.60 to $19.86, trading at approximately 97% of its yearly high, indicating strong momentum and bullish sentiment.
Beta
0.65
0.65x market volatility
Max Drawdown
-18.9%
Largest decline past year
52-Week Range
$15-$20
Price range past year
Annual Return
+0.0%
Cumulative gain past year
| Period | ET Return | S&P 500 |
|---|---|---|
| 1m | +0.4% | -3.6% |
| 3m | +14.1% | -4.0% |
| 6m | +12.7% | -2.0% |
| 1y | +0.0% | +16.2% |
| ytd | +14.1% | -3.8% |
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ET Fundamental Analysis
Revenue for Q4 2025 was $22.41 billion, showing a 14.68% year-over-year growth from the same quarter in 2024. Profitability has improved, with the net income margin for the latest quarter at 6.51%, up from 5.51% a year prior, and quarterly EPS increasing from $0.29 to $0.40. The company's financial health is characterized by a high debt-to-equity ratio of 2.08, which is typical for capital-intensive midstream firms, but it is supported by a current ratio of 1.22 and robust annual free cash flow of $3.85 billion. Operational efficiency is solid, with a return on equity (ROE) of 14.26% and a return on assets (ROA) of 4.36%, indicating effective use of its asset base to generate profits.
Quarterly Revenue
$22.4B
2025-12
Revenue YoY Growth
+0.14%
YoY Comparison
Gross Margin
+0.25%
Latest Quarter
Free Cash Flow
$3.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ET Overvalued?
Given the company's positive net income, the primary valuation metric is the P/E ratio. The trailing P/E ratio is 12.28, and the forward P/E is 12.20, suggesting the market prices the stock at a reasonable multiple of its earnings. Compared to other valuation metrics, the Price/Sales ratio is 0.73 and the EV/EBITDA is 8.74, which may indicate the stock is not excessively valued relative to its sales and operating cash flow. Peer comparison data for industry averages is not available in the provided inputs.
PE
12.3x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 2x~19x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.7x
Enterprise Value Multiple
Investment Risk Disclosure
The primary financial risk is ET's elevated debt-to-equity ratio of 2.08, which, while common for midstream firms, increases vulnerability to rising interest rates and could constrain financial flexibility during downturns. The high dividend payout ratio of 96.4% indicates the distribution is well-covered by earnings but leaves minimal buffer for a significant earnings decline.
Market and operational risks are inherent to the energy sector. ET's performance is tied to commodity price volatility, regulatory policies affecting fossil fuels, and potential shifts in energy demand. Geopolitical events, like the attacks on Qatar's LNG infrastructure mentioned in recent news, create both opportunity and risk, potentially disrupting global supply chains ET relies on.
Finally, the stock's technical position presents a near-term risk, as it trades at $19.30, just 2.8% below its 52-week high of $19.86. This leaves the stock susceptible to a pullback or profit-taking, especially if broader market sentiment sours, despite its recent strong relative strength against the S&P 500.