Energy Transfer LP has announced its outlook for capital investment and earnings estimates for full-year 2026.
Growth Capital Expenditures
In 2026, Energy Transfer expects to invest $5.0 billion to $5.5 billion in growth capital, primarily on projects enhancing its natural gas network.
Energy Transfer is uniquely positioned to capture numerous opportunities in the current market given its nationwide natural gas gathering and transportation franchise and strong financial position. The strategic expansions are supported by long-term commitments with targeted returns in the mid-teens (sub-6.0x EBITDA build multiples). Energy Transfer’s growth capital excludes affiliates Sunoco LP and USA Compression Partners, LP.
Disciplined Growth Strategy
Energy Transfer remains focused on disciplined growth and expects to maintain its leverage target, as calculated by all three primary rating agencies, of 4.0 to 4.5 times EBITDA during this period of meaningful investment opportunities. Given the range of potential projects, the Partnership remains focused on disciplined growth, allocating capital to projects that are expected to generate the highest returns while balancing project risks.
Earnings Outlook
Energy Transfer expects continued growth in 2026 and to generate between $17.3 billion and $17.7 billion of consolidated Adjusted EBITDA, which includes SUN and USAC. Significant new projects are expected to ramp up and/or come on-line in 2026 including the Nederland Flexport NGL expansion, Mustang Draw I and Mustang Draw II processing plants in the Permian Basin, Hugh Brinson Pipeline Phase I, NGL projects on the Lone Star Express and Gateway Pipelines, and natural gas pipeline projects serving data centre facilities in Texas.
Cash Distribution Strategy
Over the past three years, Energy Transfer has returned more than 50 percent of its annual cash flow each year to its unitholders through cash distributions. The Partnership expects to continue to target a long-term annual distribution growth rate of 3 to 5 percent. Cash distributions are supported by a growing asset base with exceptional product and geographic diversity with balanced earnings contributions from its nationwide network of natural gas, NGL and crude oil assets.
For more information visit www.energytransfer.com
