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Energy Transfer Retains Buy Ratings Despite Q3 Miss

Analysts cite resilient fee-based cash flows, solid coverage ratios.

Overview

  • Energy Transfer reported fiscal Q3 2025 revenue of $19.95 billion and EPS of $0.28, both below estimates.
  • The shortfall was linked to midstream revenue of $2.992 billion, a 1.5% sequential decline and flat year over year.
  • J.P. Morgan’s Jeremy Tonet reaffirmed a Buy on November 23 with a trimmed price target of $21, while Scotiabank reiterated Buy on November 6 with a $23 target.
  • Recent commentary points to stable core EBITDA, strong distribution coverage, and valuation metrics such as low EV/EBITDA and a high yield.
  • A Seeking Alpha analysis highlights an Oracle–Voltagrid link as a potential tailwind tied to AI-driven power demand, framing it as a possible long-term boost for ET’s asset base.