Energy Transfer Upgraded to Buy, Raises 2026 EBITDA Forecast to $18.2–18.6B
ET•Jefferies upgraded Energy Transfer to Buy after adjusted EBITDA grew 20%, prompting a raised 2026 EBITDA forecast to $18.2–18.6 billion. The midstream company highlighted new natural gas supply agreements for AI data centers, expanded NGL export capacity securing 20% market share, and maintains a 6.55% dividend yield.
1. Analyst Upgrade to Buy
Jefferies upgraded Energy Transfer from Hold to Buy, citing the company's improved midstream fundamentals and long-term contract protections that underpinned a positive outlook.
2. Strong Financial Results and Forecast
Energy Transfer reported a 20% year-on-year increase in adjusted EBITDA and raised its 2026 EBITDA guidance to a range of $18.2 billion to $18.6 billion, reflecting robust cash flow visibility.
3. AI Data Center Supply Agreements
The company secured new natural gas supply contracts with major AI data center operators, including three Oracle facilities, positioning it to capitalize on surging tech-sector demand.
4. Dividend Yield and NGL Export Expansion
Offering a 6.55% dividend yield, Energy Transfer is also expanding its NGL export capacity, now controlling roughly 20% of global exports to strengthen income generation.
