Energy Transfer LP (NYSE: ET ) is growing its asset footprint in the vital Permian Basin through the expansion of the Transwestern Pipeline with which the MLP seeks to serve the growing markets in Arizona andAnalyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD, ENB, MPLX, KMI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have ...

Energy Transfer LP (NYSE: ET ) is growing its asset footprint in the vital Permian Basin through the expansion of the Transwestern Pipeline with which the MLP seeks to serve the growing markets in Arizona andAnalyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD, ENB, MPLX, KMI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have ...

Core Viewpoint - Energy Transfer's growth has significantly slowed in 2025, with a decline in unit prices and underperformance compared to the S&P 500, despite a strong previous year [1][2]. Financial Performance - In 2024, Energy Transfer achieved a record $15.5 billion in adjusted EBITDA, a 13% increase from 2023 [4]. - The company generated $8.4 billion in distributable cash flow in 2024, marking a 10% year-over-year increase [5]. - For the first half of 2025, adjusted EBITDA was nearly $8 billion, reflecting a 4% increase, while distributable cash flow was $5.5 billion, showing less than 1% growth [6]. Growth Outlook - Energy Transfer expects adjusted EBITDA for 2025 to be at or slightly below the lower end of its guidance range of $16.1 billion to $16.5 billion, indicating less than 4% growth compared to 2024 [7]. - The company is investing $5 billion in growth capital projects in 2025, with many projects expected to come online by the end of 2026 [8]. - Recent completions include two new gas processing plants, with another scheduled for completion in the second quarter of next year [9]. Expansion Projects - Energy Transfer is finalizing the Nederland Flexport NGL expansion and the Hugh Brinson Pipeline, which are expected to significantly boost earnings and cash flow in 2026 and 2027 [10]. - The Desert Southwest expansion of the Transwestern Pipeline, a $5.3 billion project, is anticipated to be operational by the end of the decade [11]. - The company is also advancing the long-delayed Lake Charles LNG export project and exploring additional projects to supply gas to new power plants and data centers [12]. Financial Position - Energy Transfer is in its strongest financial position to date, allowing for potential acquisitions as opportunities arise [13]. - Although no deals have been made this year, its affiliate Sunoco LP has agreed to acquire Parkland for $9.1 billion, expected to enhance earnings by over 10% in the first year [14]. Investment Opportunity - Despite the slowdown in growth, the recent dip in unit prices may present a buying opportunity, especially for investors willing to accept the Schedule K-1 tax form [15]. - Investors can benefit from a distribution yield of over 7.5%, which is expected to grow as income rises, positioning them for a high total return [16].