Analysts have slightly lowered their average price target for Energy Transfer, reducing it by approximately $0.41 to $21.87. They cite moderated growth expectations, increased competition in key segments, and a growing preference among investors for cash returns over expansion.

Analyst Commentary

Recent street research presents a mix of optimism and caution regarding Energy Transfer's future prospects. Analysts have updated their outlooks in light of both industry trends and company-specific developments.

• Bullish analysts maintain positive ratings and anticipate that a shift in investor preference toward cash returns, such as increased dividends and share buybacks, could support Energy Transfer's valuation.
• Some expect that a potential reduction in capital expenditures, along with disciplined financial management, may bolster shareholder returns.
• The possibility of a September Federal Reserve interest rate cut is viewed as a potential short-term catalyst. This could improve sentiment toward midstream sector stocks.
• Resilience in the company’s core operations and integrated midstream portfolio remains a point of confidence for more optimistic analysts.

• Bearish analysts highlight the lack of clear growth catalysts, citing an absence of upward re-rating triggers that could lift the stock price materially.
• There are concerns about persistent headwinds in the natural gas liquids (NGLs) business, especially amid ongoing competition in the Permian region and a softer oil macro environment.
• Muted expectations for absolute natural gas growth and lingering commodity market uncertainty contribute to a more cautious near-term outlook.
• Questions remain about the sustainability of significant growth, with return metrics now prioritized over expansionary capital programs.

What's in the News

• Energy Transfer LP announced a more than 3 percent increase in its quarterly cash distribution, raising it to $0.3325 per common unit for the third quarter ended September 30, 2025. The distribution will be paid on November 19, 2025, to unitholders of record as of November 7, 2025 (Key Developments).
• FourPoint Resources, LLC and Energy Transfer LP have entered a strategic agreement to expand the Price River Terminal in Wellington, Utah. The project will double export capacity, add significant new storage and logistics infrastructure, and support the marketing of American Premium Uinta crude throughout the Lower 48 states (Key Developments).
• Energy Transfer has reached a positive financial investment decision to expand its Transwestern Pipeline, a $5.3 billion project designed to deliver increased natural gas supplies to Arizona and New Mexico. The project is expected to be in service by late 2029 (Key Developments).
• Multiple investment banks, including Morgan Stanley, BofA Securities, Barclays, and others, have recently been added as co-lead underwriters for Energy Transfer's Fixed-Income Offering (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has decreased slightly from $22.29 to $21.87.
• Discount Rate has risen marginally, moving from 8.36 percent to 8.36 percent.
• Revenue Growth expectations have fallen, dropping from 7.38 percent to 6.51 percent.
• Net Profit Margin projections declined from 6.69 percent to 6.15 percent.
• Future P/E ratio has increased from 14.71x to 16.08x.