Should You Buy Energy Transfer Stock Before Feb. 17?

Core Viewpoint - Energy Transfer is expected to report its fourth-quarter earnings on February 17, with little anticipation of significant stock price movement following the report [1][2]. Earnings Report Insights - Historically, Energy Transfer's stock has not fluctuated by 5% or more in either direction after earnings reports over the past three years, with the largest movement being a 4.3% gain after the first-quarter 2025 results [2]. - The company has already provided its 2026 guidance, projecting adjusted EBITDA between $17.3 billion and $17.7 billion, indicating a growth of 9% to 10% [4]. - Energy Transfer has warned that its 2025 adjusted EBITDA may fall slightly below the forecast range of $16.1 billion to $16.5 billion [4]. Capital Expenditure and Growth Projects - The company plans to allocate between $5 billion and $5.5 billion for growth capital expenditures in 2026, an increase from the $4.6 billion budgeted for 2025 [5]. - Energy Transfer aims for EBITDA build rates below 6 times for its projects, which are expected to yield mid-teen returns, contributing approximately $900 million in incremental EBITDA once fully operational [5]. Investment Considerations - Investors are advised that buying Energy Transfer stock ahead of earnings is not a significant concern, as it is considered a high-yield dividend stock in the midstream energy sector [6]. - The company offers a robust forward yield of 7.4%, with a coverage ratio of 1.7 times in Q3, and maintains a solid balance sheet [7]. - Energy Transfer has promising growth opportunities in the midstream sector, particularly due to its natural gas assets in the Permian, which provide access to inexpensive natural gas [7].