Energy Transfer to Post Q4 Earnings: What's in Store for This Season?

Core Viewpoint - Energy Transfer LP (ET) is anticipated to show a year-over-year increase in both revenues and earnings for the fourth quarter of 2025, with revenues expected to reach $26.02 billion, reflecting a 33.16% growth compared to the previous year [1][5]. Revenue Estimates - The Zacks Consensus Estimate for ET's fourth-quarter revenues is $26.02 billion, which is a 33.16% increase from the $19.54 billion reported a year ago [2]. - For the next quarter, revenues are estimated at $27.15 billion, indicating a 29.18% growth year-over-year [2]. Earnings Estimates - The consensus estimate for earnings is set at 34 cents per unit, which represents a 5.56% decline in estimates over the past 60 days [3]. - The earnings estimates have shown a downward trend, with a 5.56% decrease in the current quarter's estimate compared to previous months [4]. Performance Factors - Fee-based contracts are projected to account for nearly 90% of Energy Transfer's earnings, providing a stable revenue base that is expected to support fourth-quarter performance [9]. - New long-term natural gas supply agreements and the addition of new processing plants are likely to positively impact earnings [10]. - Robust NGL export volumes and the company's extensive pipeline network are expected to contribute significantly to the fourth-quarter results [11][12]. Valuation Metrics - Energy Transfer is currently trading at an EV/EBITDA of 9.13x, which is lower than the industry average of 10.35x, indicating a relative discount [5][14]. - The stock has gained 5.1% over the past six months, compared to a 9% increase in the Zacks Oil and Gas Production Pipeline industry [16]. Strategic Positioning - Energy Transfer operates a vast network of nearly 140,000 miles of pipelines across 44 states, positioning it well to benefit from rising U.S. production of oil, natural gas, and natural gas liquids [17]. - Continued investments in expanding pipeline and processing capacity are expected to reinforce the company's leadership in the midstream sector [18]. Long-term Outlook - The long-term outlook for Energy Transfer remains favorable, supported by its geographic reach and focus on both organic growth and strategic acquisitions [21]. - However, near-term challenges in the Bakken region may impact storage margins [21].