Will a 20-Year Gas Deal With Entergy Louisiana Redefine Energy Transfer's (ET) Growth Prospects?

• Earlier this month, Entergy Louisiana and Energy Transfer LP jointly announced a 20-year natural gas transportation agreement, with Energy Transfer set to supply 250,000 MMBtu per day beginning in February 2028 to support new power generation and data center projects in North Louisiana, including facilities for Meta.
• This agreement signals rising demand for reliable natural gas from large-scale technology and industrial clients, linking Energy Transfer's growth prospects closely to the expanding digital infrastructure sector.
• We'll explore how this major supply agreement underpins Energy Transfer's pipeline expansions and shapes its future earnings outlook.

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Energy Transfer Investment Narrative Recap

To be a shareholder in Energy Transfer, you need to believe in a world where natural gas remains a vital bridge fuel for power generation and data infrastructure, underpinned by long-term contracts with top-tier customers. The recently announced 20-year agreement with Entergy Louisiana reinforces Energy Transfer's ties to fast-growing digital demand but does not materially alter the most immediate catalyst: the successful delivery and ramp-up of large-capacity pipeline projects, nor does it offset the core risk of execution delays and volume shortfalls in key basins.

Recent news about the new Midland Basin processing plant, expected online in late 2026, stands out as directly relevant. This facility complements the long-haul transportation commitments and supports Energy Transfer’s push to reliably meet the surging demand for natural gas tied to both new power plants and hyperscale data center clients, reinforcing near-term growth catalysts while putting additional pressure on execution. The real challenge, however, is the risk of construction delays or cost overruns, which investors should be aware of because...

Read the full narrative on Energy Transfer (it's free!)

Energy Transfer's outlook anticipates $99.8 billion in revenue and $6.7 billion in earnings by 2028. Achieving this requires annual revenue growth of 7.4% and a $2.2 billion increase in earnings from the current $4.5 billion.

Uncover how Energy Transfer's forecasts yield a $21.87 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Members of the Simply Wall St Community place Energy Transfer's fair value between US$15.48 and US$43.62 across 21 views. At the same time, many analysts focus on the sustainability of long-term contracted growth as a key driver to watch for the company’s performance.

Explore 21 other fair value estimates on Energy Transfer - why the stock might be worth over 2x more than the current price!

Build Your Own Energy Transfer Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Energy Transfer research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Energy Transfer research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Energy Transfer's overall financial health at a glance.

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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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