Energy Transfer's Earnings Soar on Record Volumes. Is the High-Yielding Pipeline Stock Still a Buy?

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Matt DiLallo, The Motley Fool

Wed, May 6, 2026 astatine 7:28 AM CDT 4 min read

Energy Transfer (NYSE: ET) reported robust first-quarter results, fueled by grounds volumes. The vigor midstream elephantine benefited from beardown marketplace conditions owed to the warfare and its enlargement initiatives. It gave the maestro constricted concern (MLP) the assurance to boost its full-year guidance for net and maturation superior spending.

Here's a person look astatine the pipeline company's 4th and what it sees ahead.

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Robust results successful the archetypal quarter

Energy Transfer generated over $4.9 cardinal of adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) successful the archetypal quarter, a 20% summation from past year. Meanwhile, it produced $2.7 cardinal of distributable currency flow, up 17% year-on-year. That was much than capable to screen the astir $1.2 cardinal it distributed to investors. The MLP retained the remainder to reinvest successful expanding its operations.

The pipeline institution acceptable respective measurement records successful the archetypal quarter, including:

Natural state liquids (NGLs) and refined products terminal volumes (up 19%)
NGL exports (up 19%)
NGL fractionation volumes (up 11%)
Crude lipid proscription volumes (up 8%)
Midstream gathered volumes (up 6%)

The institution benefited from beardown marketplace conditions driven by war-related proviso disruptions successful the Middle East, which are fueling grounds U.S. hydrocarbon exports. Energy Transfer is besides benefiting from precocious completed enlargement projects and acquisitions by its affiliated MLPs (Sunoco LP and USA Compression Partners).

Raising its outlook

Energy Transfer's beardown archetypal 4th and the continued robust marketplace conditions amid the prolonged closure of the Strait of Hormuz are giving the MLP the assurance to rise its full-year net forecast. It present expects to make betwixt $18.2 cardinal and $18.6 cardinal of adjusted EBITDA this year. That's up from its archetypal forecast of $17.45 cardinal to $17.85 billion. The company's caller guidance scope implies its net volition turn by 14% to 16.5% this year. That's a immense acceleration from past twelvemonth erstwhile its net roseate 3.2%.

The MLP besides raised its superior spending outlook. It present expects to put betwixt $5.5 cardinal and $5.9 cardinal connected maturation superior projects this year, up from its archetypal $5 cardinal to $5.5 cardinal budget. Driving the spending summation are immoderate precocious approved enlargement projects. Energy Transfer approved the $600 cardinal Springerville Lateral Project (fourth-quarter 2029 in-service date), an enlargement of the Bayou Bridge pipeline (first 4th 2027), and a task to grow the Florida Gas Transmission system.

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