Energy Transfer (NYSE:ET) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Energy Transfer reported a quarterly EPS of $0.35, missing the consensus by $0.03 while revenue jumped 32.1% year‑over‑year to $27.77 billion, and management delivered Q1 adjusted EBITDA of about $4.9 billion while raising 2026 adjusted EBITDA guidance to ~$18.2–$18.6 billion.
• The company is advancing multiple long‑term, contracted growth projects (e.g., Desert Southwest, Springerville Lateral ~ $600M, Hugh Brinson, FGT expansions) and extended most Nederland ethane export contracts into 2041 while reporting record midstream, NGL and crude volumes.
• Management warned of execution and timing risks—about $300M of the Q1 beat was “one‑time,” higher 2026 capex increases funding needs—and although Energy Transfer declared a quarterly dividend implying a ~6.6% yield, the payout ratio is elevated at ~110.7%, signaling sustainability concerns.

Energy Transfer (NYSE:ET - Get Free Report) announced its earnings results on Tuesday. The pipeline company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.03), FiscalAI reports. Energy Transfer had a net margin of 5.11% and a return on equity of 10.17%. The firm had revenue of $27.77 billion for the quarter, compared to the consensus estimate of $25.58 billion. During the same period in the prior year, the business earned $0.36 EPS. The company's quarterly revenue was up 32.1% compared to the same quarter last year.

Here are the key takeaways from Energy Transfer's conference call:

• We delivered a strong quarter with Q1 adjusted EBITDA of ~$4.9 billion (vs. ~$4.1B y/y) and DCF of ~$2.7 billion, and raised full-year 2026 adjusted EBITDA guidance to approximately $18.2–$18.6 billion while increasing 2026 organic growth capex guidance to ~$5.5–$5.9 billion.
• Operations were robust—Energy Transfer reported record midstream gathering, NGL fractionation and export, and crude transportation volumes, and captured its full-year optimization target in Q1, driving meaningful outperformance across segments.
• The company is aggressively advancing a slate of long‑term, contracted growth projects—including Desert Southwest, the Springerville Lateral (~$600M), Hugh Brinson (Phase 1 ramping this year), FGT expansions, Mont Belvieu ethane/storage work, and the Bayou Bridge/DAPL-related initiatives—with multiple FIDs and multi‑year in‑service targets through 2029.
• Geopolitical disruption has strengthened international demand for U.S. hydrocarbons; Energy Transfer extended most Nederland ethane export contracts into 2041, is ramping FlexPort export capacity, and expects longer contracts and improved margins for LPG/ethane exports.
• There are near‑term and execution risks—management said roughly $300M of the Q1 beat is “one‑time,” some inventory gains may be offset by hedge losses in Q2, elevated 2026 capex raises funding needs versus a stated 4.0–4.5x leverage target, and several projects remain contingent on shipper elections or regulatory approvals.

Energy Transfer Trading Up 2.5%

Shares of NYSE:ET traded up $0.51 during midday trading on Tuesday, reaching $20.59. The company had a trading volume of 22,146,332 shares, compared to its average volume of 16,372,352. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.90 and a current ratio of 1.22. Energy Transfer has a 1-year low of $15.80 and a 1-year high of $20.57. The firm has a market cap of $70.82 billion, a price-to-earnings ratio of 17.01, a price-to-earnings-growth ratio of 1.09 and a beta of 0.57. The company has a fifty day simple moving average of $18.99 and a two-hundred day simple moving average of $17.75.

Energy Transfer Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Friday, May 8th will be given a $0.3375 dividend. This is a positive change from Energy Transfer's previous quarterly dividend of $0.34. The ex-dividend date is Friday, May 8th. This represents a $1.35 dividend on an annualized basis and a dividend yield of 6.6%. Energy Transfer's dividend payout ratio is 110.74%.

Analyst Ratings Changes

Several brokerages recently weighed in on ET. Jefferies Financial Group reaffirmed a "hold" rating on shares of Energy Transfer in a research note on Wednesday, February 18th. TD Cowen increased their price target on Energy Transfer from $20.00 to $21.00 and gave the company a "buy" rating in a research report on Wednesday, February 18th. Morgan Stanley increased their price target on Energy Transfer from $19.00 to $21.00 and gave the company an "equal weight" rating in a research report on Tuesday, March 10th. UBS Group reiterated a "buy" rating on shares of Energy Transfer in a research report on Wednesday, January 7th. Finally, Truist Financial initiated coverage on Energy Transfer in a research report on Tuesday, March 24th. They issued a "buy" rating and a $23.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $21.60.

Institutional Investors Weigh In On Energy Transfer

Institutional investors have recently bought and sold shares of the business. Quattro Advisors LLC acquired a new stake in Energy Transfer during the 4th quarter worth about $46,000. Fulcrum Asset Management LLP acquired a new stake in Energy Transfer during the 3rd quarter worth about $52,000. Tower Research Capital LLC TRC acquired a new position in Energy Transfer in the 2nd quarter valued at approximately $70,000. WFA of San Diego LLC purchased a new stake in Energy Transfer in the 2nd quarter worth approximately $73,000. Finally, Russell Investments Group Ltd. lifted its position in Energy Transfer by 436.5% in the 2nd quarter. Russell Investments Group Ltd. now owns 4,179 shares of the pipeline company's stock worth $76,000 after buying an additional 3,400 shares in the last quarter. 38.22% of the stock is currently owned by institutional investors and hedge funds.

Energy Transfer Company Profile

Energy Transfer NYSE: ET is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company's operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.

Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.

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