Energy Transfer (TXSE:ET – Get Free Report) posted its quarterly earnings data on Tuesday. The pipeline company reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.07), RTT News reports. Energy Transfer had a return on equity of 11.55% and a net margin of 4.87%. The firm had revenue of $37.10 billion for the quarter, compared to analysts’ expectations of $30.98 billion. During the same quarter in the previous year, the firm posted $0.28 earnings per share.
Here are the key takeaways from Energy Transfer’s conference call:
- Strong third-quarter results and higher guidance: Adjusted EBITDA rose to approximately $5.0 billion from $3.8 billion year over year, while DCF increased to $2.5 billion from $1.9 billion. Full-year 2026 EBITDA guidance was raised to $19.7 billion–$19.9 billion, up approximately $850 million at the midpoint.
- Broad-based operating momentum continued: Record intrastate transportation and midstream gathering volumes, the ramp-up of Hugh Brinson Phase 1, and higher utilization across interstate pipelines supported results across all major segments.
- Large contracted growth pipeline is advancing: Energy Transfer expects approximately $7 billion of 2027 growth CapEx, with most projects backed by long-term commitments and targeted mid-teen returns. Key initiatives include Hugh Brinson Phase 2, South Mississippi Pipeline, additional Permian processing, and expanded NGL export capacity.
- Vaquero acquisition expected to be accretive: The approximately $2.625 billion acquisition is expected to close in the fourth quarter, immediately increase DCF per common unit, and strengthen ET’s Delaware Basin gathering and processing network. Management expects the transaction’s estimated EBITDA multiple to decline from roughly 8.5x in 2027 to below 7x by 2029.
- Some earnings upside reflects market conditions: Volatility, commodity prices, and favorable spreads contributed materially to 2026 performance, including an estimated $1.5 billion of optimization benefits versus a typical $200 million–$400 million plan. Management noted that approximately $200 million of reported gains will be offset by derivative losses over the next two quarters, although some favorable conditions could continue into 2027.
Energy Transfer Trading Down 3.5%
Shares of TXSE:ET opened at $19.46 on Thursday. The firm has a fifty day moving average of $20.70 and a two-hundred day moving average of $19.69. The firm has a market capitalization of $67.01 billion, a P/E ratio of 13.24, a price-to-earnings-growth ratio of 0.73 and a beta of 0.62. Energy Transfer has a 12-month low of $16.18 and a 12-month high of $21.84. The company has a quick ratio of 0.94, a current ratio of 1.16 and a debt-to-equity ratio of 1.45.
Energy Transfer Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Friday, November 6th will be given a $0.3425 dividend. This represents a $1.37 dividend on an annualized basis and a yield of 7.0%. The ex-dividend date is Friday, November 6th. This is a positive change from Energy Transfer’s previous quarterly dividend of $0.34. Energy Transfer’s payout ratio is currently 90.13%.
Wall Street Analyst Weigh In
Several brokerages have recently commented on ET. Stifel Nicolaus started coverage on Energy Transfer in a research report on Thursday, September 10th. They issued a “buy” rating and a $25.00 target price for the company. Capital One Financial began coverage on Energy Transfer in a research report on Tuesday, September 22nd. They set an “overweight” rating and a $26.00 price target on the stock. TD Cowen reissued a “buy” rating and issued a $25.00 price objective (up from $24.00) on shares of Energy Transfer in a research note on Monday, August 10th. Wall Street Zen raised Energy Transfer from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Citigroup restated a “buy” rating and set a $24.00 price objective (up from $23.00) on shares of Energy Transfer in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Energy Transfer has an average rating of “Moderate Buy” and an average target price of $24.73.
Get Our Latest Analysis on Energy Transfer
Energy Transfer News Summary
Here are the key news stories impacting Energy Transfer this week:
- Positive Sentiment: Management raised its 2026 adjusted EBITDA outlook to $19.7–$19.9 billion, while third-quarter adjusted EBITDA rose 31% and distributable cash flow increased 33% year over year to $2.52 billion. The cash flow payout ratio was 48%, supporting the partnership’s recently increased quarterly distribution of $0.3425. Article: Energy Transfer Just Delivered a Monster Quarter
- Positive Sentiment: Expansion plans aim to capitalize on rising natural-gas demand: ET approved a $1.6 billion South Mississippi pipeline and announced a $2.6 billion Vaquero Midstream acquisition to expand its Permian footprint. The partnership also expects about $7 billion in 2027 growth spending, with projects tied to gas demand from data centers and LNG exports. Article: ET Q3 Earnings Call Puts Gas Demand and Capital Spending in Focus
- Neutral Sentiment: Revenue reached $37.1 billion, well above estimates, but much of the quarter’s strength was in volumes and cash flow rather than per-unit earnings. Jefferies raised its price target to $25, offering a positive analyst signal but not removing execution risks from ET’s large investment program. Article: Energy Transfer PT Raised to $25 at Jefferies
- Negative Sentiment: ET reported earnings of $0.33 per unit, below the $0.40 analyst consensus. That headline miss may be weighing on shares despite the stronger revenue, cash flow and raised outlook. Article: Energy Transfer Q3 Earnings Miss Estimates Despite Record Gas Volumes
Insider Buying and Selling at Energy Transfer
In other news, Director Kelcy L. Warren acquired 647,968 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was acquired at an average cost of $21.26 per share, for a total transaction of $13,775,799.68. Following the completion of the acquisition, the director owned 147,901,879 shares in the company, valued at approximately $3,144,393,947.54. The trade was a 0.44% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James Perry acquired 12,359 shares of Energy Transfer stock in a transaction that occurred on Friday, August 7th. The shares were purchased at an average cost of $20.23 per share, with a total value of $250,022.57. Following the transaction, the director owned 208,046 shares of the company’s stock, valued at approximately $4,208,770.58. The trade was a 6.32% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have bought 1,012,359 shares of company stock worth $21,513,543. 3.28% of the stock is currently owned by corporate insiders.
Energy Transfer Company Profile
Energy Transfer LP is a diversified energy infrastructure company headquartered in Dallas, Texas. The partnership owns and operates a broad network of pipelines, processing facilities, storage assets and terminals that support the movement of natural gas, natural gas liquids, crude oil and refined products across the United States.
The company’s operations include gathering and processing natural gas, transporting and storing natural gas and NGLs, fractionating NGLs into component products, and transporting crude oil and refined products.
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