Scotiabank Expects Stronger Earnings for Energy Transfer

Key Points

• Scotiabank raised its FY2026 EPS forecast for Energy Transfer to $1.66 from $1.65 and projected FY2027 EPS of $1.74, though the FY2026 estimate remains below the $1.73 consensus.
• Energy Transfer’s latest quarterly results exceeded expectations, with EPS of $0.59 versus the $0.38 consensus and revenue of $34.33 billion, up 78.4% year over year.
• Analysts maintain a generally positive view, with the stock carrying a “Moderate Buy” consensus rating and a $24.60 average price target; the company also raised its quarterly dividend to $0.3425 per share, yielding about 6.8%.

Energy Transfer LP (NYSEAMERICAN:ET - Free Report) - Stock analysts at Scotiabank increased their FY2026 earnings per share estimates for Energy Transfer in a research report issued to clients and investors on Thursday, October 22nd. Scotiabank analyst B. Bingham now expects that the pipeline company will post earnings per share of $1.66 for the year, up from their prior forecast of $1.65. The consensus estimate for Energy Transfer's current full-year earnings is $1.73 per share. Scotiabank also issued estimates for Energy Transfer's FY2027 earnings at $1.74 EPS.

Energy Transfer (NYSEAMERICAN:ET - Get Free Report) last released its earnings results on Tuesday, August 4th. The pipeline company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.38 by $0.21. The company had revenue of $34.33 billion for the quarter, compared to the consensus estimate of $27.71 billion. Energy Transfer had a net margin of 4.87% and a return on equity of 11.55%. The company's revenue was up 78.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.32 EPS.

Several other equities analysts have also weighed in on ET. Truist Financial increased their price objective on shares of Energy Transfer from $23.00 to $25.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Wall Street Zen raised shares of Energy Transfer from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Stifel Nicolaus started coverage on shares of Energy Transfer in a research report on Thursday, September 10th. They set a "buy" rating and a $25.00 target price for the company. Jefferies Financial Group reissued a "buy" rating on shares of Energy Transfer in a research note on Wednesday, August 5th. Finally, JPMorgan Chase & Co. raised their price target on Energy Transfer from $24.00 to $25.00 and gave the stock an "overweight" rating in a research report on Friday, September 4th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Energy Transfer currently has an average rating of "Moderate Buy" and an average target price of $24.60.

Energy Transfer Stock Down 0.4%

Shares of NYSEAMERICAN:ET opened at $20.04 on Friday. Energy Transfer has a one year low of $16.18 and a one year high of $21.84. The company has a 50 day moving average of $20.83 and a 200-day moving average of $20.05. The company has a debt-to-equity ratio of 1.45, a current ratio of 1.16 and a quick ratio of 0.94. The stock has a market cap of $69.00 billion, a price-to-earnings ratio of 13.63 and a beta of 0.60.

Institutional Investors Weigh In On Energy Transfer

Large investors have recently modified their holdings of the business. Osbon Capital Management LLC bought a new position in shares of Energy Transfer during the 2nd quarter valued at about $25,000. Sawyer & Company Inc bought a new position in Energy Transfer in the third quarter valued at approximately $30,000. Cassaday & Co Wealth Management LLC bought a new stake in Energy Transfer in the 1st quarter valued at $35,000. Financial Life Planners acquired a new position in Energy Transfer in the 1st quarter worth $40,000. Finally, Bullseye Investment Management LLC acquired a new position in Energy Transfer in the 2nd quarter worth $42,000. 38.22% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Energy Transfer

In other news, Director Kelcy Warren purchased 647,968 shares of the firm's stock in a transaction dated Wednesday, August 19th. The stock was bought at an average price of $21.26 per share, with a total value of $13,775,799.68. Following the acquisition, the director directly owned 147,901,879 shares of the company's stock, valued at approximately $3,144,393,947.54. This represents a 0.44% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director James Perry acquired 12,359 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was purchased at an average price of $20.23 per share, with a total value of $250,022.57. Following the transaction, the director owned 208,046 shares in the company, valued at $4,208,770.58. This represents a 6.32% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 1,012,359 shares of company stock valued at $21,513,543 in the last three months. 3.28% of the stock is owned by company insiders.

Energy Transfer Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Friday, November 6th will be given a dividend of $0.3425 per share. This is a positive change from Energy Transfer's previous quarterly dividend of $0.34. This represents a $1.37 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date of this dividend is Friday, November 6th. Energy Transfer's payout ratio is 92.52%.

About Energy Transfer

Energy Transfer LP is a diversified energy infrastructure company headquartered in Dallas, Texas. The partnership owns and operates a broad network of pipelines, processing facilities, storage assets and terminals that support the movement of natural gas, natural gas liquids, crude oil and refined products across the United States.

The company’s operations include gathering and processing natural gas, transporting and storing natural gas and NGLs, fractionating NGLs into component products, and transporting crude oil and refined products.

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