Energy Transfer Expects to Stomp on the Gas in 2026

Core Viewpoint - Energy Transfer is recovering from a challenging year in 2025, with expectations for significant growth in 2026 driven by new projects and increased capital spending [1][3][4]. Financial Performance - In 2025, Energy Transfer's adjusted EBITDA is projected to be slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion, indicating less than 4% earnings growth, a decline from the 10% compound annual growth rate from 2020 to 2024 [3][4]. - The company anticipates adjusted EBITDA of between $17.3 billion and $17.7 billion in 2026, suggesting earnings growth of 7.5% to 9.9% [4]. Growth Catalysts - Several new expansion projects are expected to contribute to growth in 2026, including the Nederland Flexport NGL expansion, Mustang Draw I & II gas processing plants, and various natural gas pipeline projects in Texas [5]. - Although Energy Transfer did not make acquisitions in the past year, its affiliates have been active, with Sunoco LP acquiring Parkland for $9.1 billion and USA Compression Partners planning to acquire J-W Power Company for $860 million [6]. Capital Expenditure and Distribution - Energy Transfer plans to increase its capital spending in 2026, which will support its ability to raise its high-yielding distribution by 3% to 5% annually [7].