Energy Transfer Equity
ET
$19.04
-0.10%
Energy Transfer LP is a diversified midstream energy company operating a vast network of pipelines, terminals, and processing facilities that transport and store natural gas, natural gas liquids (NGLs), crude oil, and refined products from production basins to end markets, primarily in Texas and the midcontinent United States. The company is one of the largest and most diversified midstream players in North America, with a competitive identity as a critical infrastructure provider whose earnings are largely fee-based, offering relative stability within the energy sector. The current investor narrative centers on its strong earnings performance, driven by record volumes and a robust project backlog, as highlighted by recent news of an earnings beat and raised guidance, positioning it as a high-yielding income stock with growth potential in a supportive commodity price environment.…
ET
Energy Transfer Equity
$19.04
Related headlines
ET 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Energy Transfer Equity's 12-month outlook, with a consensus price target around $24.75 and implied upside of +30.0% versus the current price.
Average Target
$24.75
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$15 - $25
Analyst target range
Analyst coverage for ET is limited, with only 4 analysts providing estimates, which is low for a company of its market cap and suggests it may be under-followed by the broader institutional research community, potentially leading to less efficient price discovery. The consensus revenue estimate for the period is $120.77 billion, with a wide range from a low of $105.44 billion to a high of $132.36 billion, indicating significant uncertainty or variability in forecasts regarding volume, commodity prices, and project timing. The high target scenario likely assumes successful execution of its project backlog and sustained high energy prices, while the low target may factor in potential regulatory hurdles, a slowdown in volume growth, or a downturn in commodity markets.
Bulls vs Bears: ET Investment Factors
Overall, ET has investment potential but also faces challenges. Here are key factors to weigh before investing.
Bullish
- Strong Revenue Growth & Earnings Beat: Q4 2025 revenue grew 14.68% YoY to $22.41B, accelerating sequentially from Q3's $19.95B. This was driven by record volumes across segments, leading to a recent earnings beat and raised guidance, signaling robust operational momentum.
- High & Well-Covered Dividend Yield: The stock offers a compelling 7.85% dividend yield, which is well-supported by strong free cash flow generation of $3.85B TTM. The payout ratio of 96.4% is high but sustainable given the stable, fee-based cash flows of the midstream model.
- Attractive Valuation Relative to Peers: ET trades at a trailing P/E of 12.28x and a forward P/E of 12.85x, which is at or below the typical midstream sector average in the mid-to-high teens. This suggests a potential discount, especially when combined with its high yield.
- Robust Free Cash Flow & Profitability: The company generates substantial cash, with a TTM FCF of $3.85B and a Q4 2025 net margin of 6.51%. Consistent profitability and a gross margin of 25.79% provide a solid foundation for funding growth projects and the dividend.
Bearish
ET Technical Analysis
The stock is in a sustained uptrend, having gained 11.92% over the past year, and is currently trading at $19.62, which is near the top of its 52-week range of $16.18 to $20.70 (approximately 95% of the range). This positioning near 52-week highs indicates strong momentum but also suggests the stock may be approaching a key technical resistance level, potentially leading to consolidation. Recent momentum shows a divergence from the longer-term trend, with the stock down 3.78% over the past month, even as it has gained 4.70% over the past three months; this 1-month pullback could represent a healthy consolidation after a strong run or a potential near-term topping pattern, especially given the stock's relative weakness versus the S&P 500, which is up 4.6% over the same period. Key technical support is at the 52-week low of $16.18, while immediate resistance is at the 52-week high of $20.70; a decisive breakout above $20.70 would signal a continuation of the bullish trend, while a break below the recent consolidation range near $19 could indicate a deeper correction. The stock's beta of 0.573 indicates it is approximately 43% less volatile than the broader market (SPY), which is typical for a midstream operator with stable cash flows and suggests it may offer defensive characteristics during market downturns.
Beta
0.54
0.54x market volatility
Max Drawdown
-12.1%
Largest decline past year
52-Week Range
$16-$21
Price range past year
Annual Return
+5.8%
Cumulative gain past year
| Period | ET Return | S&P 500 |
|---|---|---|
| 1m | -2.9% | -1.9% |
| 3m | +2.6% | +8.9% |
| 6m | +15.0% | +6.4% |
| 1y | +5.8% | +20.3% |
| ytd | +14.8% | +6.4% |
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ET Fundamental Analysis
Revenue growth has been robust, with Q4 2025 revenue of $22.41 billion representing a 14.68% year-over-year increase, and the sequential trend from Q3 ($19.95B) to Q4 shows continued acceleration, driven by strong performance across its diversified segments including crude sales ($5.02B), NGL sales ($4.5B), and refined product sales ($5.18B). The company is solidly profitable, with Q4 2025 net income of $1.46 billion and a net margin of 6.51%, while its gross margin for the quarter was a healthy 25.79%; profitability has been consistent, with net income positive in every recent quarter, and the trailing twelve-month free cash flow of $3.85 billion provides ample coverage for its capital expenditures and dividends. The balance sheet carries significant leverage with a debt-to-equity ratio of 2.08, which is elevated but manageable for a capital-intensive midstream entity, and the current ratio of 1.22 indicates adequate short-term liquidity; the strong free cash flow generation supports the company's high dividend yield of 7.85% and its ongoing growth projects, reducing reliance on external financing.
Quarterly Revenue
$22.4B
2025-12
Revenue YoY Growth
+0.14%
YoY Comparison
Gross Margin
+0.25%
Latest Quarter
Free Cash Flow
$3.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ET Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 12.28x, while the forward P/E is 12.85x based on estimated EPS of $2.07; the minimal gap between trailing and forward multiples suggests the market anticipates relatively stable earnings growth in the near term. Compared to typical midstream/energy infrastructure peers, a trailing P/E in the low-12x range appears to be at or slightly below the sector average, which often trades in the mid-to-high teens, indicating ET may be trading at a discount to its industry, potentially due to its higher leverage or partnership structure. Historically, the stock's own P/E ratio has fluctuated, with data showing it traded as low as 1.58x in early 2021 and as high as 18.88x in late 2023; the current level of 12.28x sits comfortably within the middle of its historical range, suggesting the valuation is neither stretched nor deeply discounted, balancing its high yield against its growth profile and financial leverage.
PE
12.3x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 2x~19x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.7x
Enterprise Value Multiple