- Company name
- Energy Transfer
- Sector
- Midstream energy partnership
- About
- Energy Transfer is a publicly traded limited partnership. It owns about 140,000 miles of pipelines and related energy infrastructure in 44 states. Its assets move, store and process natural gas, natural gas liquids (NGLs), crude oil and refined products, and it has NGL fractionation plants and export terminals. It also owns the general partner and about 15% of the units of Sunoco LP, a fuel distribution and pipeline partnership, and the general partner and about 32% of the units of USA Compression Partners, and it consolidates both. In Q3 2026, NGL and refined products gave $1,224 million and the Sunoco investment $1,049 million of the $5,031 million of Adjusted EBITDA. Investors own common units, not shares, and receive a cash distribution each quarter. The units trade on the Texas Stock Exchange since October 5, 2026, after the move from the New York Stock Exchange. The head office is in Dallas, Texas. Thomas E. Long becomes the only chief executive officer when co-chief executive officer Marshall McCrea retires, on or before December 31, 2026.
- Thesis
- Energy Transfer trades below its intrinsic value because investors are careful with its large growth spending, its acquisitions, its complex structure with two consolidated public partnerships and its partnership tax forms. Adjusted EBITDA rose 31% to $5.03 billion in Q3 2026, distributable cash flow covered the distribution 2.1 times, and the distribution of $0.3425 per unit was more than 3% higher than a year earlier. Energy Transfer raised its 2026 Adjusted EBITDA guidance to $19.7 billion to $19.9 billion. It expects growth capital of about $7 billion in 2027, and it agreed to buy Vaquero Midstream for about $2.6 billion. For the gap to close, three things must be true. New projects, such as Phase II of the Hugh Brinson Pipeline in Q1 2027 and the new Permian processing plants, must start on time and fill. Distributable cash flow per unit must keep growing while the partnership spends on growth. Debt must stay near its present level after the Vaquero acquisition. The Q4 2026 report, expected in early February 2027, is the next test. If the partnership keeps its growth and its coverage, the gap can close over the next one to two years.
- Risks
- Growth capital of about $7 billion in 2027 and the Vaquero acquisition add risk. Delays or cost overruns on new pipelines and plants can lower returns and raise debt.
Consolidated debt was $68,850 million at September 30, 2026, including the debt of Sunoco LP and USA Compression Partners. About $4.35 billion of notes are due by September 30, 2027. Higher interest rates raise the cost of new debt.
Energy Transfer is a partnership for federal income tax. A change in law can make it pay income tax as a corporation. Unitholders pay tax on their share of income even when they receive no cash, and tax-exempt holders such as retirement accounts can owe tax on unrelated business taxable income.
Some earnings move with commodity prices and spreads, such as NGL and crude oil marketing and the fuel margins of Sunoco LP.
Pipelines must follow safety and environmental rules. A leak, a fine or a permit delay can cause costs and stop projects.
- Balance sheet
- Cash: $926M
Debt: $68.9B
Net debt: $67.9B
EBITDA, last 12 months: $19.2B
Net debt / EBITDA: 3.5× (medium)
Interest cover: 3.3×
Undrawn credit line: $4.4B
Debt due within 12 months: $4.4B
Last debt due: 2057
Energy Transfer funds itself with senior notes, junior subordinated notes, preferred units, commercial paper and retained cash flow. Its consolidated debt includes the separate debt of Sunoco LP and USA Compression Partners. At September 30, 2026, total debt was $68,850 million: $51,470 million of Energy Transfer notes and debentures, $565 million under its credit facility, $13,131 million of Sunoco LP notes, bonds and lease obligations, $2,350 million of USA Compression notes and other debt. Current maturities were only $12 million, but about $4.35 billion of notes are due by September 30, 2027, which the partnership classifies as long-term because it intends to refinance them. Cash was $926 million. The $5.00 billion credit facility had $4.41 billion available, and the commitment falls to $4.84 billion from April 2027 to April 2029. Adjusted EBITDA for the 12 months to September 30, 2026 was $19,216 million ($15,034 million for the first nine months of 2026 and $4,182 million for Q4 2025). Interest cover is operating income divided by interest expense for the first nine months of 2026 ($9,338 million against $2,825 million). In November 2026, Energy Transfer priced $2.7 billion of new notes, the last due in 2057. The distribution is $0.3425 per unit each quarter, and there were 3,444,252,188 common units on October 30, 2026.
As of 2026-09-30.
- Checkpoints
- Nov 3, 2026: Q3 2026 results and distribution coverage. Passed. Watch: Higher distributable cash flow and coverage of 1.8 times or more pass; lower coverage fails. Outcome: Distributable cash flow rose 33% to $2.52 billion and covered the distribution 2.1 times.
Feb 3, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2026 Adjusted EBITDA within $19.7 billion to $19.9 billion and a higher distribution pass; lower results fail.
Q1 2027 (estimate): Hugh Brinson Phase II in service. Pending. Watch: Phase II in service in Q1 2027 within budget passes; a delay or cost overrun fails.
- Recent events
- 2026-11-05: Energy Transfer priced $2.7 billion of senior notes: $900 million of 5.450% notes due 2032, $900 million of 5.900% notes due 2037 and $900 million of 6.550% notes due 2057. It plans to use the money to repay commercial paper and borrowings under its credit facility.
2026-11-03: Energy Transfer reported Q3 2026 results. Net income attributable to partners rose to $1.21 billion from $1.02 billion, or $0.33 per common unit. Adjusted EBITDA rose 31% to $5.03 billion, and distributable cash flow attributable to partners, as adjusted, rose 33% to $2.52 billion. It raised its 2026 Adjusted EBITDA guidance to $19.7 billion to $19.9 billion and expects growth capital of about $7 billion in 2027. It took a final investment decision on the South Mississippi Pipeline, at about $1.6 billion, and announced Frac X at Mont Belvieu and the Bear II processing plant.
2026-10-05: The common units began to trade on the Texas Stock Exchange under the same ticker, ET, after the move from the New York Stock Exchange that Energy Transfer announced on September 10, 2026. In October 2026, it also agreed to buy Vaquero Midstream for about $2.6 billion in cash and units, and it declared a distribution of $0.3425 per unit, more than 3% higher than a year earlier.
2026-09-01: Energy Transfer put Phase I of the Hugh Brinson Pipeline into full service, ahead of schedule. It expects Phase II in Q1 2027.
2026-08-04: Energy Transfer reported Q2 2026 results. Net income attributable to partners was $2.09 billion, or $0.59 per common unit, and Adjusted EBITDA rose 31% to $5.07 billion. NGL exports rose 25% to a record. In August 2026, it redeemed $900 million of Series H preferred units with money from junior subordinated notes due 2057.
2026-06-01: Energy Transfer said that co-chief executive officer Marshall McCrea will retire on or before December 31, 2026. Co-chief executive officer Thomas E. Long then becomes the only chief executive officer.