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1. Company Snapshot

1.a. Company Description

Energy Transfer LP provides energy-related services.The company owns and operates approximately 11,600 miles of natural gas transportation pipeline, and three natural gas storage facilities in Texas and two natural gas storage facilities located in the state of Texas and Oklahoma; and 19,830 miles of interstate natural gas pipeline.It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.


The company owns and operates natural gas gathering and natural gas liquid (NGL) pipeline, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and a natural gas gathering system in Ohio, as well as transport and supplies water to natural gas producer in Pennsylvania.It owns approximately 5,215 miles of NGL pipeline; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminal with an aggregate storage capacity of approximately 17 MMBbls.The company provides crude oil transportation, terminalling, acquisition, and marketing activities; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum product.


It offers natural gas compression service; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management service; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power.The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018.The company was founded in 1996 and is headquartered in Dallas, Texas.

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1.b. Last Insights on ET

Energy Transfer LP's recent performance has been driven by strong pipeline assets, rising demand, and steady fee-based earnings growth. The company's diversified business model, including its gas storage network, boosts reliability and fee-based revenues, unlocking growth opportunities. Energy Transfer's resilience in the face of sector headwinds is supported by a robust distribution yield and a burgeoning backlog that should benefit earnings and distribution growth. The company's fee-based contracts drive steady earnings, support growth investments, and shield it from commodity price volatility. Energy Transfer's expanding gas storage network and midstream assets highlight its long-term growth potential, with analysts projecting 7-10% annual EBITDA growth through 2030.

1.c. Company Highlights

2. Energy Transfer's Q3 2025 Earnings: A Closer Look

Energy Transfer reported Q3 2025 adjusted EBITDA of $3.84 billion, flat year-over-year, and distributable cash flow (DCF) of $1.9 billion. The company's EPS came in at $0.28, missing estimates of $0.3333. For the first nine months of 2025, adjusted EBITDA was $11.8 billion, and organic growth capital spending was $3.1 billion. The company has narrowed its 2025 adjusted EBITDA guidance range and now expects to be slightly below the lower end of the $16.1 billion to $16.5 billion range.

Publication Date: Nov -07

📋 Highlights
  • Q3 2025 Adjusted EBITDA Flat at $3.84B: DCF of $1.9 billion and 9M 2025 EBITDA of $11.8 billion.
  • NGL Segment Growth: Adjusted EBITDA rose to $1.1 billion (up from $1 billion in Q3 2024).
  • Desert Southwest Pipeline: Fully contracted with 400,000 dekatherms/day demand and $25 billion data center deals.
  • Hugh Brinson Expansion: 2.2 Bcf/day capacity, $4.6 billion 2025 CapEx, and $5 billion growth backlog.
  • Permian Basin Demand: 12–15% growth expected over 4.5 years, with $800–$1 billion NGL-to-natural gas conversion potential.

Segment Performance

NGL and refined products adjusted EBITDA was $1.1 billion, up from $1 billion in Q3 2024, driven by increased demand and higher prices. Midstream adjusted EBITDA was $751 million, down from $816 million, while crude oil adjusted EBITDA was $746 million, down from $768 million. Interstate natural gas adjusted EBITDA was $431 million, down from $460 million, and intrastate natural gas adjusted EBITDA was $230 million, down from $329 million. These declines were largely due to lower commodity prices and reduced demand.

Growth Projects and Opportunities

Energy Transfer has several growth projects underway, including the Desert Southwest pipeline and the Hugh Brinson Pipeline Expansion Project, which is expected to have a capacity of 2.2 Bcf per day. The company has also announced agreements with Oracle to supply natural gas to three U.S. data centers and a 10-year agreement with Fermi America to provide pipeline interconnection and gas supply to a hypergrid campus. These projects are expected to generate mid-teen returns and contribute to the company's growth.

Valuation and Outlook

With a P/E Ratio of 13.59 and an EV/EBITDA ratio of 8.02, Energy Transfer's valuation appears reasonable. Analysts estimate next year's revenue growth at 10.5%, driven by the company's growth projects and increasing demand for natural gas. The company's dividend yield of 7.74% also makes it an attractive option for income-seeking investors. As Energy Transfer continues to execute on its growth projects and expand its presence in the energy infrastructure market, its financial performance is expected to improve.

Future Prospects

The company's Lake Charles LNG project is contingent on securing 80% equity partnerships, and Energy Transfer is evaluating options to convert one of its NGL pipelines to natural gas service in the Permian. The company's gathering assets in the Permian Basin are well-positioned for growth, with demand expected to increase by 12-15% over the next 4.5 years. With a strong team chasing opportunities and a $5 billion growth backlog, Energy Transfer is poised for continued growth and success.

3. NewsRoom

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Enterprise Products Vs. Energy Transfer: Both 'Buy' As Complementary Assets

Dec -04

Source: seekingalpha.com

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Evaluating Energy Transfer (ET) Stock's Actual Performance

Dec -03

Source: fool.com

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2 Ultra-High-Yield Pipeline Stocks to Buy With $10,000 and Hold Forever

Dec -02

Source: fool.com

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68 Graham Value All-Star (GVAS) November Dividend Dogs Show 27 'Safer' And 17 Ideal Buys

Dec -02

Source: seekingalpha.com

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The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

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Should You Buy Energy Transfer While It's Below $17.50?

Dec -02

Source: fool.com

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Energy Transfer: The 8% Dividend Stock to Own

Dec -01

Source: fool.com

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7%+ Yields: I Am Giving Thanks For My Favorite Black Friday Special

Nov -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.42%)

6. Segments

Crude Oil Transportation and Services

Expected Growth: 5.5%

Crude Oil Transportation and Services from Energy Transfer LP's 5.5% growth is driven by increased demand for crude oil transportation, expansion of its pipeline network, and strategic acquisitions. The company's diversified services, including storage and terminal operations, also contribute to its growth. Growing production in Permian Basin and other shale plays further supports the segment's growth.

NGL and Refined Products Transportation and Services

Expected Growth: 6.2%

Energy Transfer LP's NGL and Refined Products Transportation and Services segment growth of 6.2% is driven by increased volumes, primarily from Permian Basin production, expansion of its NGL export capabilities, and higher demand for refined products. The segment benefits from its extensive network and strategic acquisitions, enabling it to capitalize on growing energy demand.

Investment in Sunoco LP

Expected Growth: 4.8%

The investment in Sunoco LP from Energy Transfer LP is driven by strategic growth opportunities in the convenience store and fuel distribution market. With a growth rate of 4.8%, key drivers include increasing demand for fuel and convenience store services, expansion of Sunoco's retail footprint, and potential for operational efficiencies and cost savings through integration with Energy Transfer LP's assets.

Midstream

Expected Growth: 6.5%

Energy Transfer LP's midstream segment growth of 6.5% is driven by increased volumes from Permian Basin assets, expansion of NGL processing capacity, and higher demand for natural gas and NGLs. Additionally, the company's strategic acquisitions and partnerships have contributed to its growth, enabling it to capitalize on rising energy demand and infrastructure needs.

All Other

Expected Growth: 3.9%

All Other segment growth of 3.9% driven by increased volumes and higher prices in Energy Transfer LP's diversified energy business, including gains from strategic acquisitions, improved operational efficiencies, and favorable market conditions in natural gas, NGL, and crude oil sectors.

Investment in Usac

Expected Growth: 7.1%

The investment in USA Compression (USAC) from Energy Transfer LP is driven by growth in natural gas production, increasing demand for compression services, and USAC's expanding fleet. With a growth rate of 7.1%, USAC is poised to benefit from rising natural gas exports, power generation demand, and infrastructure expansion, solidifying its position in the energy midstream sector.

Intrastate Transportation and Storage

Expected Growth: 4.2%

Intrastate Transportation and Storage from Energy Transfer LP's growth of 4.2% is driven by increasing demand for natural gas, expanding infrastructure, and favorable regulatory environment. The segment's growth is also supported by ET's strategic acquisitions, efficient operations, and increasing utilization of its storage facilities, contributing to higher volumes and revenues.

Interstate Transportation and Storage

Expected Growth: 5.8%

Interstate Transportation and Storage from Energy Transfer LP's 5.8% growth is driven by increased demand for natural gas, expansion of transportation infrastructure, and strategic acquisitions. The segment's growth is also fueled by its extensive network, operational efficiency, and favorable market conditions, enabling the company to capitalize on emerging opportunities and strengthen its market position.

Eliminations

Expected Growth: 0.0%

The 0.0% growth in Eliminations from Energy Transfer LP suggests that there are no changes in inter-segment transactions or eliminations. This stability implies that the company's business segments are not experiencing significant shifts in operations or transactions that would impact eliminations, indicating a steady-state condition with no major growth drivers or disruptors.

7. Detailed Products

Natural Gas Pipelines

Energy Transfer LP's natural gas pipelines segment involves the transportation of natural gas from production areas to processing plants, storage facilities, and ultimately to end-users such as residential, commercial, and industrial customers.

NGL (Naphtha and Gas Liquids) Pipelines

The NGL pipelines segment involves the transportation of natural gas liquids (NGLs) such as ethane, propane, butane, and isobutane from processing plants and other supply sources to fractionation facilities, storage terminals, and end-users.

Refined Products Pipelines

The refined products pipelines segment involves the transportation of refined petroleum products such as gasoline, diesel fuel, and jet fuel from refineries and other supply sources to storage terminals, airports, and end-users.

Crude Oil Pipelines

The crude oil pipelines segment involves the transportation of crude oil from production areas to refineries, storage facilities, and other markets.

LNG (Liquefied Natural Gas) and Other

The LNG and other segment involves the production and sale of LNG, as well as other energy-related products and services.

8. Energy Transfer LP's Porter Forces

Forces Ranking

Threat Of Substitutes

Energy Transfer LP operates in the energy industry, where substitutes such as renewable energy sources (e.g., solar, wind) and alternative fuels (e.g., natural gas, hydrogen) are available. However, the demand for energy is relatively inelastic, and switching to substitutes may require significant investments, which limits the threat.

Bargaining Power Of Customers

Energy Transfer LP's customers are primarily large industrial and commercial users, as well as other energy companies. These customers have relatively low bargaining power due to the large volumes of energy they purchase and the limited number of alternative suppliers.

Bargaining Power Of Suppliers

Energy Transfer LP relies on suppliers for equipment, materials, and services. While there are multiple suppliers available, some of the equipment and materials required for energy production and transportation are specialized and have limited suppliers, which gives suppliers some bargaining power.

Threat Of New Entrants

The energy industry is capital-intensive and heavily regulated, which creates significant barriers to entry for new companies. Additionally, Energy Transfer LP has a large existing infrastructure and established relationships with suppliers and customers, making it difficult for new entrants to compete.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Energy Transfer LP competes with other pipeline and energy companies for access to resources, transportation capacity, and customer contracts, which leads to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.29%
Debt Cost 5.59%
Equity Weight 36.71%
Equity Cost 7.97%
WACC 6.46%
Leverage 172.43%

11. Quality Control: Energy Transfer LP passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cheniere Energy Partners

A-Score: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

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Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

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Kinder Morgan

A-Score: 6.4/10

Value: 4.0

Growth: 3.6

Quality: 5.2

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

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ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.8$

Current Price

16.8$

Potential

-0.00%

Expected Cash-Flows