2 Bold Predictions for Energy Transfer in 2026

Core Viewpoint - Energy Transfer is experiencing a disappointing 2025 with unit prices down over 15% year-to-date, attributed to a slowdown in earnings growth. However, 2026 is anticipated to be a better year with bold predictions for significant developments in the company [1]. Group 1: Acquisition Predictions - Energy Transfer is expected to make a multi-billion-dollar acquisition in 2026, continuing its trend as a consolidator in the energy midstream sector. The company has made several significant acquisitions in recent years, contributing to a 10% compound annual growth rate in adjusted EBITDA from 2020 to 2024 [3][4]. - Potential acquisition targets include smaller publicly traded midstream companies like Kinetik Holdings and Western Midstream Partners, which operate in the Permian Basin and could diversify Energy Transfer's platform [5]. - Alternatively, the company may acquire a privately held midstream company from a private equity fund, as these funds will need to monetize their holdings, presenting acquisition opportunities [6]. Group 2: Project Developments - Energy Transfer has halted work on the Lake Charles LNG project, which was close to approval. This decision follows a year of efforts to commercialize the project, during which the company secured sufficient volume contracts to proceed [9]. - The expectation is that both the acquisition activity and the development of the Lake Charles project will resume in 2026, marking a shift in the company's operational strategy [8].