Jefferies Lifts Energy Transfer Target to $20, Highlights Exceptional Gas Projects
Jefferies bumped Energy Transfer’s price target to $20 from $17, citing “rather exceptional” natural gas project updates after record 2025 results. The partnership reported nearly $16 billion in adjusted EBITDA and $8.2 billion in distributable cash flow last year and plans $5–$5.5 billion in organic growth spending for 2026, two-thirds on gas assets.
1. Analyst Raises Price Target
On February 18, Jefferies lifted Energy Transfer’s price objective to $20 from $17 and maintained a Hold rating, citing “rather exceptional” updates on its natural gas projects. The firm noted that while these developments are promising, the gas business still lacks the scale to fully close the company’s valuation discount.
2. Record 2025 Financial Performance
Energy Transfer delivered nearly $16 billion in adjusted EBITDA and $8.2 billion in distributable cash flow for 2025, marking record annual results. Operational execution drove record volumes across its interstate, midstream, NGL and crude oil systems, while export shipments hit new highs at the Nederland and Marcus Hook terminals.
3. 2026 Organic Growth Capital Outlook
The partnership plans to allocate $5 billion to $5.5 billion in organic growth capital in 2026, up from $4.5 billion last year. Approximately two-thirds of the budget will target natural gas assets, with the remainder focused on NGL and refined products infrastructure backed by long-term contracts to enhance return visibility.