Energy Transfer Expects to Deliver Another Big Growth Spurt Starting in 2026

Core Insights - Energy Transfer achieved record-breaking performance in the previous year, with a 13% increase in adjusted EBITDA to $15.5 billion and record distributable cash flow of $8.4 billion, up 10% year-over-year [1][2] Acquisitions and Growth - The company's growth was primarily driven by acquisitions, including a significant $7.1 billion merger with Crestwood Equity Partners in November 2023, and it anticipates a moderate EBITDA growth rate of about 5% for the upcoming year [2] - Energy Transfer expects to see a growth surge starting in 2026, fueled by organic expansion projects, with an investment of $3 billion in such projects last year [3][4] Future Projects - The company is currently working on several projects, including expansions of natural gas processing plants and the construction of the Badger processing plant, expected to enter commercial service mid-year [4] - Energy Transfer plans to invest approximately $5 billion in 2025, with major projects like the Hugh Brinson Pipeline, which has a total projected cost of $2.7 billion [5] Natural Gas Demand - The anticipated increase in natural gas demand, particularly from AI data centers, is expected to enhance the company's growth prospects [7] - Energy Transfer has signed its first gas supply contract with a data center and has received requests for connections to numerous power plants and data centers across multiple states [8] Distribution Growth - The company aims to continue increasing its high-yielding distribution, currently at 6.5%, with an expected annual growth rate of 3% to 5%, potentially accelerating post-expansion [9][10]