Energy Transfer on Tuesday forecast up to $5.5 billion in 2026 growth spending and EBITDA as high as $17.7 billion, betting on long-term natural gas projects while targeting stable leverage and steady distribution growth.
Energy Transfer Targets Gas Network Expansion
Energy Transfer LP issued its 2026 outlook Tuesday, projecting $5.0 billion to $5.5 billion in growth capital expenditures aimed largely at expanding its nationwide natural gas network. The partnership said most projects are backed by long-term commitments and are expected to generate mid-teens returns.
The Dallas-based company said the investment plan reflects continued demand for natural gas infrastructure across key U.S. basins and consumption centers. Several projects are designed to support power generation, industrial users, and data centers, particularly in Texas.
“These projects are supported by long-term contracts and fit squarely within our disciplined capital framework,” the partnership said in a statement outlining its outlook.
Energy Transfer said it plans to maintain a leverage ratio of four point zero to four point five times EBITDA, consistent with prior targets. The company also reaffirmed its intention to grow cash distributions by three to five percent annually.
Major Projects Support 2026 Earnings Outlook
The partnership expects consolidated Adjusted EBITDA of $17.3 billion to $17.7 billion in 2026, driven by major projects ramping up or entering service during the year. Those include natural gas liquids expansions at Nederland Flexport and the Lone Star Express system.
Additional contributors are expected from new Mustang Draw gas processing plants in the Permian Basin and Phase I of the Hugh Brinson Pipeline. Energy Transfer also cited new gas pipelines designed to serve data centers in Texas as a growing source of demand.
Company officials said the combination of processing, transportation, and export-linked assets positions Energy Transfer to benefit from rising natural gas volumes and stable fee-based revenue.
Over the past three years, the partnership has returned more than half of its annual cash flow to unitholders through distributions. Management said that track record supports confidence in sustaining future payouts while funding growth.
Analysts See Stable Income Appeal, Limited Upside
Wall Street analysts remain cautious but constructive on the stock. The most recent consensus rating on Energy Transfer is Hold, with a price target of $19.00.
According to analysts, the stock carries an Outperform view based on operational efficiency, strong EBITDA performance, and dividend strength. “Energy Transfer’s solid cash generation and yield continue to appeal to income-focused investors,” Spark said in a note.
The analysis also flagged challenges, including the need to maintain growth momentum amid mixed earnings sentiment. Still, the recent increase in cash distributions was described as a positive signal for investor confidence.
Energy Transfer units trade on the New York Stock Exchange under the symbol ET. The partnership has an average daily trading volume of about 14.8 million units and a market capitalization of roughly $56.4 billion.
Energy Transfer owns and operates one of the largest energy infrastructure portfolios in the United States, with about 140,000 miles of pipelines across forty-four states. Its assets span natural gas, crude oil, natural gas liquids, and refined products, along with ownership stakes in Sunoco LP and USA Compression Partners LP.
