Image Source: TradingView
By Brian Nelson, CFA
Energy Transfer (ET) recently reported second quarter results that came in better than expectations with revenue and GAAP earnings per share exceeding the consensus marks. Energy Transfer reported net income attributable to partners for the three months ended June 30 of $2.09 billion compared to $1.16 billion in the same period last year. Adjusted EBITDA for the quarter was $5.07 billion compared to $3.87 billion in last year’s quarter, an increase of 31%. Distributable cash flow was $2.59 billion compared to $1.96 billion in the year-ago period, an increase of 32%.
Energy Transfer set a number of records in the quarter in terms of volumes. NGL transportation volumes were up 13%, setting a new partnership record. NGL exports were up 25%, setting a new partnership record. Crude oil transportation volumes were up 4%, setting a new partnership record, while midstream gathered volumes were up 4%, setting another new partnership record. Energy Transfer is well-positioned to benefit from increasing demand for natural gas infrastructure expansion to support increased needs for power generation and LNG exports. Growing demand for natural gas liquids exports is also a tailwind.
Looking to 2026, Energy Transfer now expects its adjusted EBITDA guidance to be in the range of $18.8-$19.1 billion, compared with a prior range of $18.2-$18.6 billion. Growth capital expenditures are targeted in the range of $5.6-$5.9 billion for 2026. In July, Energy Transfer announced a quarterly cash distribution of $0.34 per common unit for the quarter ended June 30, an increase of more than 3% compared to the second quarter of 2025. We liked Energy Transfer’s record-setting quarter and the progression of its distribution growth. The entity remains a holding in the High Yield Dividend Newsletter portfolio. Shares yield 6.8% at the time of this writing.
—–
Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.