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.
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.
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.
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.
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.
