Energy Transfer LP (NYSE:ET) reported second quarter 2026 results that significantly exceeded Wall Street expectations, with revenue of $34.3 billion and adjusted EBITDA of $5.07 billion, representing year-over-year increases of 78% and 31% respectively. The partnership also announced its nineteenth consecutive quarterly distribution increase and raised its full-year 2026 guidance.
🔑 Key Takeaways
- Adjusted EPS of $0.59 in Q2 2026, beating consensus of $0.37 by $0.22
- Revenue of $34.3 billion, up 78% year-over-year
- Adjusted EBITDA of $5.07 billion, up 31% YoY
- 19th consecutive quarterly distribution increase, raised to $0.34 per unit
- 2026 guidance raised: adjusted EBITDA now expected between $18.8B and $19.1B
Quarterly Results Smash Expectations Across the Board
Energy Transfer delivered a standout Q2 2026, with adjusted earnings per unit of $0.59, beating the analyst consensus of $0.37 by a substantial $0.22. Revenue reached $34.3 billion, representing a 78% increase from $19.2 billion in Q2 2025 and surpassing the estimate of $28.67 billion. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $5.07 billion, up 31% year-over-year from $3.87 billion. Distributable cash flow attributable to partners surged 32% to $2.59 billion.
« The results for the first quarter show how incredibly well-positioned our assets are across the country. Combining our extensive pipeline network, our storage facilities, and our terminals with our exceptionally experienced optimization and operating teams, we can capitalize on quickly changing dynamics and market volatility. »
Tom Long, Co-CEO, TIKR, 2026
Record Operational Performance and Strategic Milestones
Operationally, Energy Transfer achieved multiple records in the second quarter. NGL (natural gas liquids) transportation volumes jumped 13% year-over-year to reach a partnership record. NGL exports grew 25% to a new all-time high. Crude oil transportation volumes increased 4% to a record, and gathering midstream volumes also rose 4% to set a new benchmark. The Hugh Brinson pipeline entered commercial service and is expected to reach its Phase I capacity of 1.5 billion cubic feet per day by September 1, 2026.
Capital Investments to Drive Future Growth
Growth capital expenditures for 2026 are projected between $5.6 billion and $5.9 billion, with $1.10 billion already deployed in Q2. These investments support LNG terminal projects, pipeline expansions, and natural gas infrastructure development as demand for these assets grows due to data center and artificial intelligence requirements. The company is positioning itself to capitalize on the secular tailwinds driving natural gas demand for power generation and LNG exports.
19th Consecutive Distribution Hike and Upgraded 2026 Outlook
Energy Transfer announced its nineteenth consecutive quarterly distribution increase, raising the per-unit payout to $0.34, representing an annualized rate of $1.36 and a 3% increase compared to Q2 2025. The partnership also declared a cash distribution of $0.2111 per Series I preferred unit, payable on August 14, 2026 to unitholders of record as of August 4, 2026. « Energy Transfer is well positioned to benefit from multiple visible growth drivers across the business, » the company stated, citing growing demand for natural gas infrastructure supporting electricity generation and LNG exports.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $34.3B | $19.2B | +78% |
| Adjusted EBITDA | $5.07B | $3.87B | +31% |
| Distributable Cash Flow | $2.59B | $1.96B | +32% |
| Adjusted EPS | $0.59 | $0.37 (est.) | +$0.22 vs consensus |
2026 Guidance Raised: $550 Million Increase at Midpoint
Following the results, Energy Transfer upgraded its full-year 2026 adjusted EBITDA guidance. Initially raised in Q1 to a range of $18.2 billion to $18.6 billion, the new outlook projects $18.8 billion to $19.1 billion, with a midpoint of $18.95 billion. This revision represents a $550 million increase from the prior midpoint of $18.4 billion. In Q1 2026, the company had already posted strong results with revenue of $27.77 billion (+32% YoY) and adjusted EBITDA of $4.94 billion (+20%), which justified the initial $750 million midpoint increase.
Market Reaction, Governance Update, and Valuation Outlook
Market reaction was decidedly positive. Units climbed 1.85% in premarket trading following the announcement and surged 5.0% after the guidance revision. On the governance front, Co-CEO Marshall McCrea III will depart by December 31, 2026, with no successor announced to date. According to a valuation model from TIKR, the price target stands at $27, implying a potential 43% upside from the current unit price of $19, with an annualized total return of 15.2% over 2.5 years, including a distribution yield of 7.2%. The model assumes revenue CAGR of 11.3%, operating margin of 10.1%, and an exit multiple of 12.5x earnings. Fair value estimates among Simply Wall St community members range from $21 to approximately $51, reflecting wide dispersion in outlook.
| Company | P/E Multiple | Distribution Yield | Coverage Ratio |
|---|---|---|---|
| Energy Transfer (ET) | – | 7.2% (annualized) | – |
| Enterprise Products (EPD) | 13x | 6.5% | 1.7x+ |
| Kinder Morgan (KMI) | ~20x | – | – |
Sector Context and Growth Catalysts
Compared to peers, Enterprise Products Partners (EPD) trades at approximately 13x earnings with a distribution yield of 6.5% and coverage ratio above 1.7x, while Kinder Morgan (KMI) changes hands at nearly 20x earnings, reflecting a premium for its natural gas and LNG export exposure. Natural gas demand from data centers and artificial intelligence infrastructure is cited as a secular tailwind for the sector, supporting the value proposition of Energy Transfer’s transportation and terminal assets.
« Energy Transfer is well positioned to benefit from multiple visible growth drivers across the business, » citing growing demand for natural gas infrastructure supporting power generation and LNG exports.
Energy Transfer, official statement, August 2026
Sources
- Investing.com, August 4, 2026
- Seeking Alpha, August 3, 2026
- Yahoo Finance, August 4, 2026
- Simply Wall St, 2026
- Investing.com Earnings, August 4, 2026
- TIKR, 2026
This article is published for informational and educational purposes only. It does not constitute investment advice. Conduct your own research (DYOR) before making any financial decisions.
