Overview
- Energy Transfer is projected to deliver about $16 billion in 2025 EBITDA and trades at under 9x EV/EBITDA versus a peer average near 12x.
- Roughly 90% of earnings are fee‑based, first‑half 2025 distributable cash flow totaled nearly $4.3 billion, and the payout was covered about 1.9x with a yield around 7.8%–7.9%.
- The balance sheet sits in the lower half of the 4.0–4.5x leverage target, described as the strongest financial position in the company’s history.
- The company is deploying roughly $5 billion of 2025 growth capex, including the 400‑mile Hugh Brinson gas pipeline and NGL and gas‑processing expansions, with key phases targeted for late 2026 and early 2027 and some capacity entering service by end‑2026.
- Coverage expects these additions to reaccelerate earnings growth in 2026 and 2027 while the units continue to offer a high, sustainable distribution.