Energy Transfer LP Units Up 21% In 2026
Pipelines, the unsung heroes of the energy sector, are essentially toll bridges that move oil and gas from wellhead to refineries, eventually finding its way to companies in various industries that make the world run.
Without oil and gas you wouldn’t have fuels, electricity, everyday packaging, home good, appliances & electronics, synthetic fabrics, outdoor gear, shoes & accessories, medical devices, pharmaceuticals, cosmetics & toiletries, building materials, fertilizers & pesticides.
Now, because pipeline companies earn a fee for each barrel shipped, they’re on the receiving end of reliable cash flow and dividends.
On top of that, limited partnerships like Energy Transfer LP (NYSE:ET), don’t have to pay corporate taxes as long as they earn at least 90% of their income from activities involving the transportation of commodities here in the U.S. This extra money allows them to pay some of the best dividends on Wall Street.
Best of all, with most contracts, oil companies need to pay midstream companies whether they use their pipelines or not. And, like all good toll operators, Energy Transfer LP has built in inflation escalators too.
About Energy Transfer LP
Energy Transfer is one of the largest and most diversified midstream energy companies in North America with roughly 140,000 miles of oil and gas pipelines and associated energy infrastructure in 44 states with assets in all of the major U.S. production basins. (Source: “Energy Transfer May 2026 Investor Presentation,” Energy Transfer LP, last accessed June 9, 2026.)
Its core operations include transportation, storage and terminaling for natural gas, crude oil, NGLs, refined products and liquified natural gas. Its assets include 236 billion cubic feet (Bcf) of natural gas storage. It recently announced construction of a new storage cavern that will double capacity at its Bethel gas storage facility from approximately 6 Bcf to over 12 billion cubic feet (Bcf).
Its leading natural gas pipeline footprint is, the company says, well positioned to meet grown electricity demand for data centers and artificial intelligence (AI) hyperscale campuses.
It has an agreement with Oracle to provide 900,000 thousand cubic feet per day (Mcf/d) of natural gas to three U.S data centers. It entered into a long-term agreement to provide Nexus Hubbard Campus with gas for AI hyperscale campus under construction in Central Texas. It has also entered into a 20-year binding agreement with Entergy Louisiana to provide natural gas to their facilities in Richland Parish, Louisianna.
Over the next 18 years, demand pull contracts from end users, data centers, and utilities are expected to provide transportation fees in excess of $25 billion. To meet the growing demand and address its backlog, the majority of its 2026 growth expenditures are being spent to enhance its extensive natural gas pipeline network.
Strong Q1 Results, Increases Full Year Adjusted EBITDA
Energy Transfer reported strong results for the first quarter ended March 31, with revenue of $27.77 billion and net income of $1.25 billion or $0.35 per share. (Source: “Energy Transfer Reports First Quarter 2026 Results and Updates 2026 Financial Guidance,” Energy Transfer LP, May 5, 2026.)
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 20% on an annual basis to $4.94 billion. Adjusted Distributable Cash Flow (DCF) increased to $2.70 billion.
Going forward, the Partnership now expects to report Adjusted EBITDA in a range of $18.2 billion and $18.6 billion, compared to the previous range of between $17.45 billion and $17.85 billion. The Partnership also expects to invest $5.5 billion to $5.9 billion in growth capital.
On the operational front, Energy Transfer announced a number of new Partnership records:
- NGL and refined products terminal volumes were up 19%
- NGL exports were up 19%
- NGL fractionation volumes were up 11%
- Crude oil transportation volumes were up 8%
- Midstream gathered volumes were up 6%
Increases Quarterly Distribution Again
Investors love limited partnerships like Energy Transfer because it is home to some of the biggest distributions on Wall Street. It’s a cash cow that provides its shareholders with a reliable, growing high yield distribution, targeting annual distribution growth rate of 3% to 5%.
In April, it announced it increased its quarterly distribution to $0.3375 per unit, or $1.34 on an annualized basis, for a forward yield of roughly seven percent. (Source: “Energy Transfer Distribution History,” Energy Transfer LP, last accessed June 9, 2026.)
This also represents the 18th consecutive increase to its quarterly dividend; from $0.1525 per unit in the third quarter of 2021 to $0.3375. That represents a 121% increase in its quarterly distribution in roughly four years.
Wall Street Sees ET Units Hitting Record Highs
An ultra-high yield dividend is great, but its better when its tied to a share price that is doing well too. Yield and share price have an inverse relationship so its not uncommon to see a terrible stock with a fabulous dividend yield.
This isn’t the case with Energy Transfer. On May 20, ET units hit a record high of $20.70. They continue to trade near that level at $19.18. This puts ET units up:
- 18.5% over the last six months
- 20% year to date
- 16% on an annual basis
Unitholders are no doubt pleased that ET units hit a record high in late May. But Wall Street continues to be bullish on Energy Transfer and sees ET units hitting fresh highs over the coming quarters.
Analyst’s have provided a 12-month unit forecast range of $23.59 to $27. This points to potential upside of 23% to 41%.
Chart courtesy of StockCharts.com
The Lowdown on Energy Transfer LP
Energy Transfer LP is one of the best energy plays right now. It has a strong balance sheet, has a big footprint in the U.S., is growing its infrastructure, and continues to report strong financial results.
The outlook for Energy Transfer remains robust, with demand coming from utilities, data centers, and end users. The war in Iran could also see demand increase for Energy Transfer’s Gulf based infrastructure. This should help energize both the company’s units and dividend payouts.
This is good news for both shareholders, insiders, and institutional investors. Energy Transfer has significant insider ownership at 10.3%. For comparison’s sake, their peers hold less than two percent of insider ownership.
On the institutional front, the Partnership has 1,422 major holders accounting for 31.87% of shares. That institutional ownership is up from 1,376 when we last looked at the company in March.
Three of the biggest holders are Morgan Stanley, Alps Advisors Inc., and Goldman Sachs Group Inc.. (Source: “Holders,” Yahoo!Finanace, last accessed June 9, 2026.)