Energy Transfer LP

Energy Transfer's 6.3% distribution yield is likely to survive the next energy downturn, according to an analysis by The Motley Fool. The master limited partnership cut its distribution in half in 2020 during the pandemic-driven energy slump, but that move was strategic and allowed it to reduce debt-to-EBITDA from a peak of 5.4x at the end of 2020 to 4.1x today. Energy Transfer now targets distribution growth of 3% to 5% a year, and its distributable cash flow covered its distribution by 2.2x in the second quarter, compared with 1.9x for peer Enterprise Products Partners. The article notes that Energy Transfer is more leveraged and more complex than Enterprise, which has a 28-year streak of annual distribution increases and offers a 5.7% yield, making Enterprise the better choice for conservative investors.

Enterprise Products Partners, Energy Transfer, and Enbridge are highlighted as top energy dividend stocks for August, each posting record volumes and raising distributions. Enterprise Products Partners reported record second-quarter distributable cash flow of $2.3 billion, up 21% year over year, with 1.9 times distribution coverage, while Energy Transfer raised its full-year 2026 adjusted EBITDA guidance for the second time this year to between $18.8 billion and $19.1 billion. Enbridge's shares have pulled back 9.59% over the past month, which improves the entry point, as CEO Greg Ebel cites the best macro environment for growth in 10 years. All three offer growing distributions backed by fee-based cash flows and direct exposure to LNG export, NGL export, and power and data center demand.

Energy Transfer raised its full-year 2026 adjusted EBITDA guidance by $500 million to a range of $18.8 billion to $19.1 billion after reporting second-quarter distributable cash flow of $2.59 billion, up 32% year over year. The company also increased its quarterly distribution for the 19th consecutive quarter to $0.34 per share, yielding about 6.43%. Management highlighted surging natural gas demand from data centers, record NGL exports up 25% year over year, and the early completion of its 442-mile Hugh Brinson Pipeline. The stock trades near its 52-week high of $21.11 with a trailing enterprise-value-to-EBITDA multiple of around 9.7.

Alpha Wealth Funds' Insiders Fund highlighted Energy Transfer LP in its Q2 2026 investor letter, citing the midstream company's strategic shift toward AI-driven power demand. The fund reported a 1.45% loss in June, an 8.43% gain for the second quarter, and a 0.75% year-to-date return, underperforming the S&P 500's respective figures of -0.95%, 15.2%, and 9.98%. Energy Transfer's revenue surged 32% year-over-year in Q1 2026 to $27.77 billion, and the company announced a long-term agreement with Cloudburst Data Centers to supply natural gas for an AI-focused data center in Central Texas. Management is reviewing connection requests from approximately 200 data centers across 14 states. Energy Transfer closed at $20.76 per share on August 13, 2026, with a market capitalization of $71.48 billion and a dividend yield of 6.98%.

Energy Transfer LP reported second-quarter 2026 sales of US$34.33 billion and net income of US$2.09 billion, alongside higher earnings per unit. The partnership also increased its quarterly cash distribution to US$0.34 per common unit for the quarter ended June 30, 2026, reflecting management's focus on returning more cash to unitholders as volumes and profitability improved. The raised full-year EBITDA outlook supports the near-term catalyst of new pipeline and export volumes ramping, while execution and permitting risks on large multi-year growth projects remain. The higher distribution ties into the earnings story, as it demonstrates willingness to share higher cash flows while major projects like Hugh Brinson, Desert Southwest, and the Nederland export expansions move forward.

Energy Transfer has increased its quarterly cash distribution for the 19th consecutive quarter, bringing the payout to $0.34 per share, or $1.36 annually, for a yield of 6.72%. The pipeline operator, structured as a master limited partnership, benefits from long-term fee-based contracts and a growing project backlog, including agreements to supply natural gas to three Oracle data centers and a 20-year deal with Entergy Louisiana. Management aims to raise the distribution by 3% to 5% annually, supported by steady cash flow and rising energy demand tied to AI infrastructure. Investors receive a Schedule K-1 for tax reporting instead of a standard 1099-DIV.

Energy Transfer and Enterprise Products Partners stand out as midstream energy companies offering both high dividend yields and consistent distribution growth. Energy Transfer yields about 6.7%, more than six times the S&P 500's yield, and has increased its distribution for 18 consecutive quarters while targeting annual growth of 3% to 5%. Enterprise Products Partners yields roughly 6% and has raised its distribution for 28 consecutive years, with first-quarter 2026 adjusted EBITDA up 10% to $2.7 billion and distribution coverage of 1.8 times. Both companies generate largely fee-based cash flow from massive pipeline networks, reducing commodity-price exposure, and are investing in infrastructure to meet growing demand from liquefied natural gas exports and AI-driven data centers.

Baby Boomers and retirees are piling into five high-yield dividend stocks trading below Wall Street fair value, all with analyst Buy ratings and yields from 4.55% to nearly 7%. AT&T yields 4.55% and added 432,000 net postpaid phone subscribers and 646,000 high-speed internet customers, both above estimates. Energy Transfer pays a 6.71% distribution yield and raised its 2026 EBITDA guidance, benefiting from surging natural gas demand driven by AI-powered data centers. Pfizer yields 6.97% with 16 straight years of dividend growth and is building a new obesity pipeline through experimental GLP-1 treatments and the acquisition of ecnoglutide. Realty Income offers a 5% yield, owns over 15,500 properties with a 98.9% occupancy rate, and has paid 667 consecutive monthly dividends. VICI Properties yields 6.67%, reported 4.5% adjusted funds from operations per share growth, and raised its 2026 guidance.

Brookfield Infrastructure, Energy Transfer, and Realty Income are generating substantial excess cash flow that supports both high-yield dividends and growth investments. Brookfield Infrastructure reported $709 million in funds from operations in the first quarter, paying out 65% of that as dividends, and has over $9 billion in expansion projects in its backlog. Energy Transfer produced $2.7 billion in distributable cash flow in the first quarter, distributing nearly $1.2 billion to investors, and plans to invest $5.5 billion to $5.9 billion in organic expansion projects this year. Realty Income generated nearly $1.1 billion in adjusted funds from operations in the first quarter, paid out about 70% as dividends, and expects over $980 million in adjusted free cash flow this year to reinvest in new properties, targeting $9.5 billion in total investment volume. Each company's retained cash flow is funding projects that should drive dividend growth and stock price appreciation, enhancing total returns.

The Motley Fool highlights Energy Transfer, Pfizer, and United Parcel Service as three high-yield dividend stocks that are not yield traps. Energy Transfer offers a 6.6% forward yield and could see 3% to 5% annualized distribution growth driven by AI data center demand. Pfizer sports a nearly 7% yield and trades at 8.5 times forward earnings, with stabilizing results suggesting it can maintain its dividend despite a 2028 patent cliff. United Parcel Service has a forward yield of 5.7% and a 16-year track record of annual increases, with an improving macro backdrop and rising freight rates pointing to a further recovery.

Energy Transfer, Chevron, and ExxonMobil are highlighted as high-yield dividend stocks capable of delivering a lifetime of rising passive income. Energy Transfer, a massive midstream company with a 6.6% yield, operates a 140,000-mile pipeline network that generates 90% of its revenue from fees, insulating it from commodity price swings. Chevron yields over 3.7% and has raised its dividend for 39 consecutive years, with growth prospects boosted by its acquisition of Hess and a 30% stake in the Guyana Stabroek Block. ExxonMobil, the largest U.S. oil major, yields 2.8% and has increased its dividend for 43 straight years, supported by a strong balance sheet and strategic acquisitions like Pioneer Natural Resources.

Energy Transfer LP raised its 2026 EBITDA guidance and declared a quarterly cash distribution of US$0.2111 per Series I Preferred Unit, payable on August 14, 2026, to holders of record as of August 4, 2026. The raised guidance supports the income appeal of both common and preferred units, anchored by fee-based cash flows from natural gas, NGLs, and crude volumes. The company is executing a multi-year buildout of natural gas and NGL projects aimed at data center demand and export growth, with investors watching whether contracted volumes and project execution meet expectations. Simply Wall St projects Energy Transfer will reach $116.5 billion revenue and $6.2 billion earnings by 2029, implying 8.1% annual revenue growth and a $2.1 billion earnings increase from $4.1 billion today, yielding a fair value estimate of $23.59 per unit, a 16% upside to the current price.

Three companies beyond the semiconductor sector are capitalizing on the artificial intelligence boom. Brookfield Corporation has launched an inaugural AI infrastructure fund targeting up to $100 billion in assets, with initial investments in fuel cells for data centers and a new full-stack AI services company, as part of a strategy to achieve 25% annual earnings growth over five years. Energy Transfer is building large-scale gas pipelines and laterals to serve gas-fired power plants and data centers, with multiple additional projects expected to be approved. Prologis has started $2.1 billion in new data center projects this year, bringing its total investment to nearly $4 billion, and has a pipeline of 5.8 gigawatts of data center projects, with potential to develop over 10 gigawatts in the next decade.

A Motley Fool contributor plans to invest his next $1,000 equally across Bloom Energy, Brookfield Renewable, and Energy Transfer, citing unprecedented energy demand growth driven by artificial intelligence, electric vehicles, and advanced manufacturing. Bloom Energy, a fuel-cell developer, recently expanded its AI infrastructure partnership with Brookfield Asset Management to $25 billion and saw first-quarter revenue surge over 130% to more than $750 million, with full-year revenue growth guidance raised to 80%. Brookfield Renewable, a global renewable energy platform yielding over 4.5%, expects to deploy $9 billion to $10 billion over five years to drive more than 10% annual funds-from-operations-per-share growth and 5% to 9% annual dividend increases. Energy Transfer, a master limited partnership yielding nearly 7%, is building several large-scale gas pipelines including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Desert Southwest Pipeline expansion to supply gas directly to data centers and power plants, aiming for 3% to 5% annual distribution growth.

Billionaire Leon Cooperman’s Omega Advisors holds three stocks that each warrant a different call, according to a recent analysis. Vertiv Holdings, trading at $304.57, has surged 88.08% year-to-date and now trades at 52 times forward earnings, suggesting patience is warranted despite strong AI data center demand. Rocket Companies, at $14.60, saw first-quarter revenue explode 167.1% to $2.94 billion after integrating Mr. Cooper and Redfin, but shares are down 24.59% year-to-date and the bull case still requires falling interest rates. Energy Transfer, at $19.91, looks most compelling with a 6.65% yield, raised full-year adjusted EBITDA guidance to a range of $18.20 billion to $18.60 billion, and locked-in gas supply agreements with Oracle for AI data centers.

Energy Transfer has raised its 2026 growth capital expenditure guidance to a range of $5.5 billion to $5.9 billion, up from an initial estimate of $5 billion to $5.5 billion. The spending is backed by long-term, fee-based volume commitments and targets mid-teens returns, with a substantial portion directed toward natural gas pipeline projects to meet demand from AI data centers and gas-to-electricity trends. The company reported first-quarter revenue of $27.7 billion, up 32% year over year, and adjusted EBITDA of $4.94 billion, while distributable cash flow of $2.7 billion easily covers its distribution. Energy Transfer has raised distributions for 18 consecutive quarters and plans annual increases of 3% to 5%, though the heavy capex may keep its valuation multiple compressed until assets enter service around late 2027 to 2028.

The Alerian MLP ETF, trading near $53 and up 17% year to date, saw its quarterly distribution rise to $1.03, pushing its forward yield to roughly 7.8%. Every major holding raised payouts in the first half of 2026, with Enterprise Products Partners extending its 27-year distribution growth streak with a 3% increase to $0.55 per unit, and MPLX delivering a 13% raise to $1.08 while reaffirming that pace through 2027. Energy Transfer lifted its distribution more than 3% to $0.3375 and raised 2026 EBITDA guidance by $750 million to a range of $18.2 to $18.6 billion, while Western Midstream raised to $0.93 and posted record first-quarter adjusted EBITDA of $683 million. Risks include leverage creep at MPLX, which climbed to 3.7 times after three acquisitions, a 26% one-month drop in WTI crude to about $70, and the fund’s C-corp tax structure, which contributed to its five-year total return of 117% trailing underlying MLPs such as Western Midstream at 216% and MPLX at 198%.

Energy Transfer has priced a combined US$1.75 billion offering of junior subordinated notes due 2057, providing fresh insight into its capital structure and the planned redemption of existing preferred units. Based on the most followed narrative, the company's fair value is estimated at US$23.59 per unit, significantly above the current trading price of US$19.25, implying an 18.4% undervaluation. This valuation hinges on long-term growth in natural gas and liquids, supported by substantial investments in new pipelines and storage projects to meet rising power generation and data center demand. However, investors should also consider risks such as potential delays or cost overruns on multi-year projects and the impact of energy transition policies on long-term fossil fuel demand.

Global liquefied natural gas demand could surge 65% by 2050, adding 700 million tons annually from 2025 levels, according to Shell's LNG Outlook 2026. ExxonMobil, a major oil producer with significant LNG operations, expects to double its LNG portfolio by 2030 and sees demand rising 3% annually through 2050. Cheniere Energy, the largest U.S. LNG producer, generated $1.67 billion in distributable cash flow in the first quarter and raised its 2026 forecast to as much as $5.25 billion. Energy Transfer, a midstream operator with a 7.1% dividend yield, posted $185 million in EBITDA growth in its natural gas liquids and refining business in the first quarter and stands to benefit from data center demand for pipeline-sourced energy.

Global liquefied natural gas demand is projected to surge 65% by 2050, adding 700 million tons annually from 2025 levels, according to Shell's LNG Outlook 2026. The global LNG market is also expected to grow at a compound annual rate of 7.1% from this year through 2035. China's LNG imports have risen 258% since 2016, and the number of LNG-importing countries increased to 49 from 36 over that period. ExxonMobil is investing in four large-scale LNG projects and expects to double its LNG portfolio by 2030 from 2020 levels, potentially boosting output by 40 million metric tons annually. Cheniere Energy, the largest domestic LNG producer, generated 1.67 billion dollars in distributable cash flow in the first quarter and raised its 2026 forecast to between 4.75 billion and 5.25 billion dollars. Energy Transfer, a major midstream operator, posted first-quarter natural gas liquids and refining EBITDA growth of 185 million dollars and offers a 7.1% dividend yield.

Energy Transfer won a $392 million judgment in a Texas court over a failed challenge from San Antonio’s city-owned utility CPS Energy regarding gas prices during the February 2021 Winter Storm Uri. The judge found that the prices charged by Energy Transfer were consistent with charges to other parties during the weeklong period of sub-freezing temperatures that caused a spike in electricity demand. The award includes $263.6 million that CPS Energy had disputed and refused to pay, $119 million in interest, and $9.3 million in attorney fees. During the storm, Energy Transfer sold electricity at the maximum rate of $9,000 per megawatt-hour as instructed by the state’s grid operator, invoicing $308 million, while CPS Energy argued that $51.9 million was the correct amount and filed a lawsuit seeking a declaration that it did not owe the remaining balance.

Midstream pipeline companies are offering high yields backed by multi-year volume tailwinds from U.S. LNG exports and data center power demand. Enterprise Products Partners yields 6% with 27 consecutive years of distribution growth and a $5.0 billion buyback authorization. Energy Transfer yields 7% and has signed Oracle data center supply agreements ramping to approximately 900 million cubic feet per day, while raising its 2026 adjusted EBITDA guidance by $750 million to a range of $18.2 billion to $18.6 billion. Kinder Morgan yields 4% as a C-corp with simpler tax treatment, and CEO Kim Dang notes that approximately 70% of future power demand from data centers under development is in states served by the company's assets. All three stocks have posted double-digit year-to-date gains, with U.S. LNG export capacity projected to reach 27.7 billion cubic feet per day by 2030 from 14.9 billion cubic feet per day in 2025.

Energy Transfer is viewed as a more attractive energy investment than Occidental Petroleum for the second half of 2026, according to an analysis. Energy Transfer, a major midstream company operating over 140,000 miles of pipeline, is better insulated from volatile oil prices and benefits from rising natural gas demand tied to AI data centers, while offering a forward yield of 6.9%. Occidental Petroleum, primarily an upstream producer, is more sensitive to crude oil prices and carries a lower forward yield of 2.3%, though it can sustain its capex and dividends with WTI crude above $40-$45 per barrel. Energy Transfer trades at seven times this year's adjusted EBITDA, compared to four times for Occidental, but its stability and AI exposure make it the preferred pick amid uncertain oil prices.

Texas has become the epicenter of America's AI data center boom, with ERCOT projecting electricity demand could approach 368 gigawatts by 2032, driven almost entirely by AI and data center load. Vistra Corp., the largest competitive generator in the state, has signed 20-year power purchase agreements with Meta for more than 2,600 megawatts of nuclear output and a separate 20-year, 1,200-megawatt nuclear supply deal tied to its Comanche Peak plant. NRG Energy closed a $12 billion acquisition of LS Power's generation portfolio, doubling its capacity to about 25 gigawatts, and has signed a 295-megawatt supply deal to power two Texas data centers with an option to expand to 1 gigawatt. Energy Transfer LP began flowing natural gas to Oracle's data center campus near Abilene in January, the first of agreements to supply up to 900 million cubic feet a day across three Oracle sites, and says it has inked agreements for more than 6 billion cubic feet a day in new demand-pool volumes over the past year. CenterPoint Energy now has 12.2 gigawatts of firmly committed new industrial load in its Houston territory, up 63% from one quarter earlier, and expects to energize 8 gigawatts of data center load by 2029. Fermi Inc., a nine-month-old pre-revenue company co-founded by former Texas Governor Rick Perry, is planning an 11-gigawatt grid-independent power and data center campus called HyperGrid outside Amarillo, with supply deals including Energy Transfer for gas to its first phase of generation.

Energy Transfer has rallied 17% year-to-date, beating the S&P 500's 9% gain, and is positioned to continue outperforming in the second half of 2026. The midstream giant operates over 140,000 miles of pipeline and is insulated from commodity price swings because it charges toll-like fees, yet record crude oil and NGL volumes in the first quarter of 2026 and new long-term gas-supply deals with utilities and data centers are revaluing it as an AI infrastructure play. Management raised its 2026 adjusted EBITDA growth forecast to 14%-16% from a prior 9%-12%, accelerating from 3% growth in 2025. With an enterprise value of $135.3 billion, the stock trades at just seven times this year's adjusted EBITDA and offers a 6.9% forward yield, while its 2025 adjusted distributable cash flow of $8.2 billion easily covered $4.6 billion in distributions, leaving room for future hikes. Investors should note that Energy Transfer is a master limited partnership requiring a K-1 tax form.

Energy Transfer announced a major expansion of its Nederland NGL Export Terminal, targeting completion by 2029. The project adds 240,000 barrels per day of ethane export capacity and 55,000 barrels per day of LPG capacity, along with new ship docks and expanded storage. The expansion is backed by long-term customer commitments extending into the 2040s and is expected to push NGL export capacity to industry-leading levels.

Energy Transfer has returned about 166% over the past five years, yet the stock still screens as undervalued on broad valuation checks. The partnership trades at a price-to-earnings ratio of about 16.0 times, below the peer average of roughly 18.6 times and well under Simply Wall St's tailored fair ratio estimate of around 26.2 times. On five of six valuation measures, the stock appears priced below what its fundamentals might justify. Expansion projects tied to natural gas and NGL export capacity support expectations for sustained cash flows, though heavy capital spending could limit flexibility if conditions sour. The key question for investors is whether the apparent discount reflects excessive caution or a fair price for the execution, spending, and regulatory risks that come with large midstream projects.

Energy Transfer LP has entered into multiple agreements with Matador Resources and a sponsorship deal with the Arizona Ridge Riders. On June 4, Matador Resources announced a new gas supply agreement with Energy Transfer affiliates to improve pricing netbacks and reduce Waha Hub volatility exposure in the second half of 2026, building on an October 2025 transportation deal for 500,000 MMBtu per day on the Hugh Brinson Pipeline. Matador also executed natural gas liquids agreements dedicating Delaware Basin NGLs to Energy Transfer's system. On June 26, the Arizona Ridge Riders announced a multi-year partnership making Energy Transfer the Official Partner and Presenting Sponsor of Ridge Rider Days, including a youth development program and a new Bull Riding Scholarship.

Energy Transfer announced an expansion of its Nederland NGL Export Terminal to meet additional customer demand. The project will expand ethane export capacity by 240,000 barrels per day and add 55,000 barrels per day of additional LPG capacity, with all of the ethane export capacity committed under long-term agreements extending into the 2040s. The company will also expand its Mont Belvieu to Nederland NGL export pipeline capacity and construct two additional NGL ship docks. The previously announced expansion of refrigerated propane and butane storage tanks to 1.2 million barrels and 0.8 million barrels, respectively, is expected to be available in the first half of 2027. Energy Transfer has exported more than 430 million barrels of ethane from Nederland since 2021.

The Arizona Ridge Riders will officially announce a multi-year partnership with Energy Transfer at their 2026 training camp this weekend in Buckeye, Arizona. Energy Transfer, one of the nation's largest energy infrastructure companies and the developer behind the planned Desert Southwest Pipeline project, becomes an Official Partner of the team and Presenting Sponsor of Ridge Rider Days. The partnership includes the Ridge Riders' first Youth Bull Riding Scholarship Program and the inaugural Youth Rider Clinic, the first of which will be held Saturday morning hosted by actor Mo Brings Plenty. Energy Transfer will also receive prominent branding on the back yoke of team jerseys throughout the PBR Teams season. The agreement further features a season-long social media content series and ambassador programming with Mo Brings Plenty.

To generate $10,000 in annual passive income from Energy Transfer, an investor would need to purchase approximately 7,465 shares at $19 per share, requiring an investment of $141,844. The midstream company offers a forward yield of 7.05%, with total distributions accounting for only 56% of its adjusted distributable cash flow in 2025. By comparison, the same amount invested in the 10-Year Treasury at a 4.38% yield would produce just $6,213 in annual income. Energy Transfer operates as a master limited partnership, providing tax-efficient distributions through a blend of return of capital and income.

The Motley Fool suggests that investors nervous about the tech stock frenzy consider three steady, high-yield master limited partnership pipeline stocks: Energy Transfer, Enterprise Products Partners, and Western Midstream. Energy Transfer offers a 7.2% yield and trades at a forward enterprise value-to-EBITDA multiple of 8.3, with growth projects like the Hugh Brinson and Desert Southwest Pipelines expected to generate high-teens returns. Enterprise Products Partners has increased its distribution for 27 straight years, yields 6%, and trades at a forward EV/EBITDA multiple of 10.5, while maintaining low leverage of 3.2x and a strong balance sheet. Western Midstream yields 8.7%, trades at a forward EV/EBITDA multiple under 9, and is expanding its natural gas and crude gathering footprint in the Delaware Basin through the Brazos Delaware acquisition, with leverage of only 3x.