Energy Transfer LP (NYSE:ET) is one of the 11 Best Pipeline and MLP Stocks to Buy in 2026. RBC Capital Lowered Price Target on Energy Transfer (ET) On January 28, 2026, RBC Capital lowered its price target on Energy Transfer LP (NYSE:ET) from $22 to $21 while maintaining an Outperform rating on the shares. The update was part of RBC’s broader research note previewing the fourth quarter for the U.S. Midstream industry. RBC Capital noted underperformance in stocks focused on natural gas compared to those r ...

Based in Dallas, Texas, Energy Transfer (NYSE: ET) has a very attractive 7.3% distribution yield. That is likely to attract dividend investors looking to maximize the income their portfolios generate. However, before you buy, you'll want to know a few facts about the business backing that yield. Energy Transfer is a little complex Energy Transfer is one of the largest midstream operators in North America. It basically owns energy infrastructure, such as pipelines, that help move oil and natural gas arou ...

Core Viewpoint - Investors favor dividend stocks due to their reliable, high yields which provide substantial passive income and significant total return potential [1] Group 1 - Dividend stocks are attractive for their dependable income streams [1] - High yield dividend stocks are associated with significant total return potential [1]

Core Viewpoint - The energy sector presents attractive dividend yields, with three high-yield energy stocks recommended for investment in February [1] Group 1: Enbridge - Enbridge offers a forward dividend yield of 5.6% and has increased its dividend for 30 consecutive years, supported by strong free cash flow [2] - The company operates over 18,000 miles of liquids pipelines and over 19,200 miles of natural gas pipelines, ranking as the largest natural gas utility by volume in North America [2] - Enbridge has expanded into renewable energy, with projects generating over 7.2 gigawatts of electricity [2] - JP Morgan downgraded Enbridge due to sluggish growth in its crude oil business, but it is expected to provide stability and reliable income [3] Group 2: Energy Transfer - Energy Transfer operates over 140,000 miles of pipeline across the U.S., transporting crude oil, natural gas, natural gas liquids, and refined products [4] - The company has a distribution yield of 7.3%, appealing to income investors, and benefits from the construction boom of data centers for AI systems [5] - Energy Transfer has signed agreements to supply natural gas to multiple data center operators, including CloudBurst, Fermi America, and Oracle over the past year [5] Group 3: Enterprise Products Partners - Enterprise Products Partners has a distribution yield of approximately 6.3% and has increased its distribution for 27 consecutive years [6] - The company is also positioned to capitalize on growth opportunities related to AI, with around $4.8 billion of projects under construction, expected to begin operations in 2026 [7] - Despite modest growth expectations for 2026, management projects a 10% growth in EBITDA and cash flow in 2027 [8]

Industry Overview - The Zacks Oil and Gas - Pipeline MLP industry consists of master limited partnerships that transport oil, natural gas, refined petroleum products, and natural gas liquids in North America, generating stable fee-based revenues from transportation and storage assets [3] - The industry is currently facing a gloomy outlook due to conservative spending by exploration and production companies, which is expected to reduce demand for transportation and storage assets [1][6] Financial Metrics - The industry has a high debt-to-capitalization ratio of 56.6%, indicating that borrowing is common for financing large infrastructure projects, which may limit financial flexibility [4] - The current trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio for the industry is 11.01X, lower than the S&P 500's 19.05X but above the sector's 5.95X [14] Market Performance - The Zacks Oil and Gas - Pipeline MLP industry has underperformed the broader Zacks Oil - Energy sector and the S&P 500 over the past year, declining by 7.8% compared to the sector's 14.8% gain and the S&P 500's 17.3% rise [10] Future Challenges - The industry is expected to face challenges from a shift to renewable energy, which may lower demand for pipeline and storage networks for oil and natural gas [5] - Oil and gas exploration and production companies are under pressure to prioritize stockholder returns over production growth, negatively impacting the demand for pipeline and storage assets [6] Key Players - Enterprise Products Partners LP (EPD) has a robust business model with a pipeline network exceeding 50,000 miles, generating stable fee-based revenues and returning capital to unitholders consistently [17][18] - Energy Transfer LP (ET) operates a vast pipeline network of 125,000 miles, generating stable revenues and is projected to see earnings growth of 17% this year [20][21] - Plains All American Pipeline LP (PAA) benefits from stable fee-based revenues through its pipeline network and storage assets, with recent upward earnings estimate revisions [23]

Energy Transfer LP (NYSE:ET) is one of the best cheap stocks to buy for 2026. On January 21, Goldman Sachs increased its price target for Energy Transfer LP (NYSE:ET) to $19.00 from $18.50 and kept a Neutral rating on the stock. The firm attributed the adjustment mainly to the upcoming USAC/J-W Power acquisition in the first quarter of 2026. The other key factor is minor tweaks to assumptions about re-contracting in natural gas liquids (NGLs) and crude oil segments, which led to a roughly 1% rise in longer ...

Core Viewpoint - The energy sector, particularly midstream businesses, offers high-yield investment opportunities for income-focused investors in 2026, despite the overall volatility of oil and natural gas commodities [1]. Industry Overview - The energy industry is divided into upstream, midstream, and downstream segments, with upstream and downstream being inherently volatile due to commodity price fluctuations. In contrast, midstream businesses, which own energy infrastructure assets, are more stable as they primarily charge fees for asset usage [2][3]. Midstream Business Characteristics - Midstream companies connect upstream producers to downstream processors and charge fees based on the volume of energy transported rather than commodity prices, leading to more consistent revenue streams [3]. High-Yield Midstream Options - Three notable midstream companies with attractive dividend yields are Enbridge, Enterprise Products Partners, and Energy Transfer, each offering different risk and yield profiles [4]. Enbridge (ENB) - Current Price: $48.28, Market Cap: $105 billion, Dividend Yield: 5.58%, has diversified operations including oil and natural gas pipelines and clean energy, and has increased its dividend for 30 consecutive years [5][6]. Enterprise Products Partners (EPD) - Current Price: $33.10, Market Cap: $72 billion, Dividend Yield: 6.57%, operates solely in oil and natural gas midstream assets, and has a history of conservative management with 27 years of annual dividend increases [7][8]. Energy Transfer (ET) - Current Price: $18.16, Market Cap: $62 billion, Dividend Yield: 7.25%, has the highest yield among the three but previously cut its distribution in 2020 to strengthen its balance sheet, with plans for gradual distribution growth of 3% to 5% annually [9][10].

Energy Transfer and Enterprise Products Partners have similar distribution growth rates, but one has a higher yield.Enterprise Products Partners (EPD 0.27%) and Energy Transfer (ET 1.68%) are two of the largest midstream businesses in North America. They provide services to energy companies, helping to move oil and natural gas around the world for a fee.While the energy sector is generally pretty volatile, these two master limited partnerships (MLPs) have reliable, cash-generating businesses to back their l ...

Core Viewpoint - Energy Transfer has established itself as a reliable income stock with a distribution yield exceeding 7%, significantly higher than the S&P 500's yield of 1.1% [1][2]. Financial Performance - The latest cash distribution has been raised to $0.335 per unit, which annualizes to $1.34, marking a more than 3% increase from the previous year [3]. - The company has maintained a payout ratio of slightly over 50% of its annual cash flows over the last three years, allowing it to retain billions for expansion and maintain financial flexibility [4]. Growth Prospects - Energy Transfer plans to invest between $5 billion and $5.5 billion in growth capital projects this year, an increase from $4.6 billion last year, with significant projects like the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline Expansion [6][7]. - Additional potential projects are in development, including the Dakota Access North Project and initiatives to supply gas to new data centers and power generation facilities, which could further enhance growth [7]. Investment Appeal - The consistent increase in distribution makes Energy Transfer an attractive option for investors seeking passive income [8].

Company Overview - Energy Transfer LP (NYSE:ET) operates in the transportation, storage, processing, and marketing of natural gas, natural gas liquids, and crude oil through its pipeline facilities [2]. Investment Insights - The stock has a yield of 7.3%, which is considered very inexpensive, making it an attractive investment opportunity [1]. - The company is viewed positively by market analysts, with recommendations to buy the stock due to its favorable positioning in the market [2]. Market Context - The stock is highlighted as being in a "sweet spot" for investment, indicating strong potential for growth [2]. - There is a comparison made with AI stocks, suggesting that while ET is a solid investment, certain AI stocks may offer greater upside potential and less downside risk [2].