The Deal No One Saw Coming: Why Energy Transfer Stock Will Leave Every Other MLP in the Dust

Core Viewpoint - Energy Transfer is strategically shifting focus from its Lake Charles LNG project to enhance its natural gas pipeline infrastructure, which is expected to drive significant growth in the coming years [1] Financial Performance - Energy Transfer reported Q4 2025 revenue of $25.32 billion, with net income declining to $928 million from $1.08 billion year-over-year [1] - The company achieved an adjusted EBITDA of $4.18 billion, reflecting an 8% increase compared to the same quarter last year [1] - Earnings per share (EPS) for the quarter stood at $0.25 [1] Operational Highlights - Crude oil transportation volumes increased by 6%, NGL fractionation rose by 3%, and NGL exports surged by 12% [1] - Terminal volumes experienced a 12% increase, indicating strong throughput across Energy Transfer's extensive pipeline network of 140,000 miles [1] Strategic Developments - The suspension of the Lake Charles LNG project allows Energy Transfer to prioritize investments in pipeline infrastructure [1] - The company has initiated 900 MMcf/d natural gas deliveries to Oracle data centers, responding to the rising demand driven by AI technologies [1] - Energy Transfer has expanded its Desert Southwest pipeline capacity to 2.3 Bcf/d at a cost of $5.6 billion [1] Future Outlook - The adjusted EBITDA guidance for 2026 has been raised to a range of $17.45 billion to $17.85 billion, up from a previous estimate of $17.3 billion to $17.7 billion [1] - Growth capital expenditures are projected between $5.0 billion and $5.5 billion, with a strong emphasis on expanding the natural gas network [1] Market Performance - As of February 17, Energy Transfer shares have gained 11.8% year-to-date, outperforming the broader midstream MLP sector, which recorded an 11.3% gain [1]