Energy Transfer (NYSE:ET) Trading Down 2.5% After Earnings Miss

Key Points

• Stock fell ~2.5% after Energy Transfer reported Q earnings of $0.35 per share versus a $0.40 consensus (a $0.05 miss) even as revenue beat at $27.77B (+32.1% YoY) and the company raised 2026 adjusted EBITDA guidance to $18.20–$18.60B on record volumes.
• Energy Transfer raised its quarterly distribution to $0.3375 (annualized $1.35) for a ~6.8% yield, but the payout ratio is elevated at 110.74%, highlighting distribution sustainability risk.
• Analyst and institutional support is notable—several firms raised price targets or reiterated buys and large investors like Morgan Stanley materially increased stakes—leaving a consensus Buy rating and a $21.91 price target.

Energy Transfer LP (NYSE:ET - Get Free Report)'s stock price was down 2.5% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $19.77 and last traded at $19.8750. Approximately 16,033,813 shares were traded during trading, a decline of 3% from the average daily volume of 16,615,109 shares. The stock had previously closed at $20.39.

The pipeline company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.05). The business had revenue of $27.77 billion during the quarter, compared to analyst estimates of $25.58 billion. Energy Transfer had a net margin of 5.11% and a return on equity of 10.17%. The business's quarterly revenue was up 32.1% compared to the same quarter last year. During the same period last year, the business earned $0.36 earnings per share.

Energy Transfer Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Stockholders of record on Friday, May 8th will be paid a dividend of $0.3375 per share. The ex-dividend date of this dividend is Friday, May 8th. This is a positive change from Energy Transfer's previous quarterly dividend of $0.34. This represents a $1.35 dividend on an annualized basis and a dividend yield of 6.8%. Energy Transfer's payout ratio is 110.74%.

Key Stories Impacting Energy Transfer

Here are the key news stories impacting Energy Transfer this week:

• Positive Sentiment: Raised 2026 guidance, higher distribution and record volumes support upside — Energy Transfer increased its 2026 adjusted EBITDA guidance to $18.20–$18.60B, raised the common-unit distribution to $0.3375 and reported record operating volumes, which underpins the company’s cash-flow outlook and payout. ET up after guidance raise
• Positive Sentiment: Analyst bullishness — Stifel Nicolaus raised its price target on ET from $23 to $25 and initiated/maintained a "buy" view, implying meaningful upside from current levels. Stifel price-target lift
• Positive Sentiment: Unusual options activity points to short-term bullish bets — investors bought ~102,786 call options (about +93% vs. average), indicating speculative interest in upside momentum.
• Neutral Sentiment: Coverage and commentary — multiple outlet write-ups and analyst notes (Fool, Zacks, Benzinga recaps) emphasize the strong volumes and higher guidance but debate valuation and sustainability; these pieces provide context but offer mixed buy/sell signals. Fool coverage
• Negative Sentiment: EPS miss — GAAP diluted EPS of $0.35 missed the consensus of $0.40, a headline that pressured sentiment despite the revenue beat and raised guidance. MarketBeat earnings recap
• Negative Sentiment: Sell-side/independent downgrade — Seeking Alpha published a downgrade piece that argues valuation and yield risk make the partnership less attractive today, adding to caution among some investors. Seeking Alpha downgrade

Analyst Ratings Changes

ET has been the topic of a number of recent research reports. Raymond James Financial reissued a "strong-buy" rating on shares of Energy Transfer in a research note on Wednesday. Wells Fargo & Company lifted their price target on Energy Transfer from $23.00 to $25.00 and gave the company an "overweight" rating in a research note on Friday, March 13th. Scotiabank reissued an "outperform" rating on shares of Energy Transfer in a research note on Friday, January 16th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Energy Transfer in a research note on Wednesday. Finally, UBS Group reaffirmed a "buy" rating on shares of Energy Transfer in a research note on Wednesday, January 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $21.91.

Institutional Investors Weigh In On Energy Transfer

A number of hedge funds have recently added to or reduced their stakes in the business. Morgan Stanley increased its holdings in Energy Transfer by 41.6% in the fourth quarter. Morgan Stanley now owns 86,310,272 shares of the pipeline company's stock worth $1,423,256,000 after purchasing an additional 25,366,594 shares in the last quarter. Alps Advisors Inc. increased its holdings in Energy Transfer by 8.0% in the fourth quarter. Alps Advisors Inc. now owns 83,843,087 shares of the pipeline company's stock worth $1,382,573,000 after purchasing an additional 6,192,066 shares in the last quarter. Invesco Ltd. increased its holdings in Energy Transfer by 3.2% in the third quarter. Invesco Ltd. now owns 57,862,666 shares of the pipeline company's stock worth $992,923,000 after purchasing an additional 1,773,042 shares in the last quarter. Tortoise Capital Advisors L.L.C. increased its holdings in Energy Transfer by 0.3% in the fourth quarter. Tortoise Capital Advisors L.L.C. now owns 38,675,828 shares of the pipeline company's stock worth $637,764,000 after purchasing an additional 103,245 shares in the last quarter. Finally, Energy Income Partners LLC increased its holdings in Energy Transfer by 1.4% in the third quarter. Energy Income Partners LLC now owns 23,351,183 shares of the pipeline company's stock worth $400,706,000 after purchasing an additional 326,653 shares in the last quarter. 38.22% of the stock is currently owned by institutional investors.

Energy Transfer Stock Performance

The firm has a market capitalization of $68.38 billion, a P/E ratio of 16.43, a P/E/G ratio of 1.09 and a beta of 0.57. The stock has a fifty day simple moving average of $19.02 and a two-hundred day simple moving average of $17.78. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.22 and a quick ratio of 0.90.

About Energy Transfer

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.