Energy Transfer (ET): Assessing Valuation After Quarterly Distribution Boost and Analyst Earnings Upgrades

Energy Transfer (NYSE:ET) just announced a higher quarterly cash distribution for common unitholders, marking an increase of over 3% from last year. For investors, this signals ongoing strength in the company’s cash flows and a consistent strategy of shareholder returns.

See our latest analysis for Energy Transfer.

Energy Transfer’s share price has drifted lower so far in 2025, settling at $16.99, and is down nearly 14% year-to-date, even as the company continues to raise distributions and post resilient cash flows. Despite this softer near-term share price return, long-term investors have still seen a stellar 11.6% total shareholder return over the past year and a more than fourfold gain in total return across five years. This highlights just how rewarding that steady distribution strategy has been.

If the stability and income potential in Energy Transfer appeal to you, now’s a great moment to broaden your search and discover fast growing stocks with high insider ownership

With the stock still trading well below analysts’ price targets and Energy Transfer showing strong financials, investors have to ask: is there real upside left, or is the market already accounting for future growth?

Most Popular Narrative: 23.8% Undervalued

With a widely followed narrative estimating fair value at $22.29 versus the current close of $16.99, the outlook frames a sizable gap between what analysts expect and where the stock trades now. This intrigue sets the stage for understanding which business drivers are fueling that divide.

Expanding pipeline and export infrastructure, alongside strong customer commitments, positions Energy Transfer to capture rising domestic and global energy demand with de-risked revenue streams. Proven success in growth projects and mergers enhances earnings visibility, margin improvement, and long-term upside as natural gas remains a key transitional energy source.

Read the complete narrative.

Want to know what’s behind this valuation upgrade? The lynchpin is a future earnings and revenue leap typically reserved for high-growth stories. What aggressive assumptions are embedded in these projections? Don’t miss the details that shaped this eye-catching price target and what that could mean for Energy Transfer’s next chapter.

Result: Fair Value of $22.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a slowdown in Bakken and Permian volumes or regulatory setbacks on large projects could challenge these positive growth assumptions in the future.

Find out about the key risks to this Energy Transfer narrative.

Build Your Own Energy Transfer Narrative

If you see things differently or prefer to dig into the details on your own terms, it’s easy to build your own perspective in just a few minutes. Do it your way

A great starting point for your Energy Transfer research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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