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Energy Transfer Announces 2026 Outlook
DALLAS–(BUSINESS WIRE)–Jan. 6, 2026 — Energy Transfer LP (NYSE: ET) announced today its outlook for capital investment and earnings estimates for full-year 2026.
Growth Capital Expenditures
In 2026, Energy Transfer expects to invest $5.0 billion to $5.5 billion in growth capital, primarily on projects enhancing its natural gas network.
Energy Transfer is uniquely positioned to capture numerous opportunities in the current market given its nationwide natural gas gathering and transportation franchise and strong financial position. The strategic expansions are supported by long-term commitments with targeted returns in the mid-teens (sub-6.0x EBITDA build multiples). Energy Transfer’s growth capital excludes affiliates Sunoco LP (NYSE: SUN) and USA Compression Partners, LP (NYSE: USAC).
Energy Transfer remains focused on disciplined growth and expects to maintain its leverage target, as calculated by all three primary rating agencies, of 4.0 to 4.5 times EBITDA during this period of meaningful investment opportunities. Given the range of potential projects, the Partnership remains focused on disciplined growth, allocating capital to projects that are expected to generate the highest returns while balancing project risks.
Earnings
Energy Transfer expects continued growth in 2026 and to generate between $17.3 billion and $17.7 billion of consolidated Adjusted EBITDA, which includes SUN and USAC.
Significant new projects are expected to ramp up and/or come on-line in 2026 including the Nederland Flexport NGL expansion, Mustang Draw I and Mustang Draw II processing plants in the Permian Basin, Hugh Brinson Pipeline Phase I, NGL projects on the Lone Star Express and Gateway Pipelines, and natural gas pipeline projects serving data center facilities in Texas.
Cash Distribution
Over the past three years, Energy Transfer has returned more than 50 percent of its annual cash flow each year to its unitholders through cash distributions. The Partnership expects to continue to target a long-term annual distribution growth rate of 3 to 5 percent.
Cash distributions are supported by a growing asset base with exceptional product and geographic diversity with balanced earnings contributions from its nationwide network of natural gas, NGL, and crude oil assets.
For additional information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Company Overview
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 44 states with assets in all of the major U.S. production basins.
Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation.
Energy Transfer also owns the general partner interests, the incentive distribution rights and 28.5 million common units (representing approximately 15% of the aggregate outstanding common and Class D units) of Sunoco LP (NYSE: SUN), and the general partner interests and 46.5 million common units (representing approximately 38% of the outstanding common units) of USA Compression Partners, LP (NYSE: USAC).
For more information, visit www.energytransfer.com.
Forward-Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control.
An extensive list of factors that can affect future results, including Adjusted EBITDA, cash distribution levels and capital expenditures, are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of Energy Transfer’s fundamental business activities and should not be considered in isolation or as a substitute for net income, income from operations, cash flows from operating activities or other GAAP measures.
There are material limitations to using measures such as Adjusted EBITDA, including the difficulty associated with using it as the sole measure to compare the results of one company to another, and the inability to analyze certain significant items that directly affect a company’s net income or loss or cash flows.
Adjusted EBITDA is used by management to determine operating performance and, along with other financial and volumetric data, as internal measures for setting annual operating budgets, assessing financial performance, evaluating acquisitions and as a component of incentive compensation.
Due to the forward-looking nature of the Adjusted EBITDA estimate disclosed herein, management cannot reliably or reasonably predict certain components of the most directly comparable GAAP measures without unreasonable effort. Accordingly, the Partnership is unable to present a quantitative reconciliation.
The information contained in this press release is available on our website at energytransfer.com.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20260105114854/en/
Contacts
Investor Relations:
Bill Baerg
Brent Ratliff
Lyndsay Hannah
214-981-0795
Media Relations:
Vicki Granado
214-840-5820
Source: Energy Transfer LP
