Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 14 Jan, 26 | ET | Buy | USD 17.45 | USD 18.5 | USD 19.5 | 71 days | Closed |
11.98%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Energy Transfer LP, together with its subsidiaries, provides energy-related services in the United States. It operates through Intrastate Transportation and Storage; Interstate Transportation and Storage; Midstream; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Investment in Sunoco LP; Investment in USA Compression Partners, LP (USAC); and All Other segments. The company owns and operates natural gas transportation pipelines and storage facilities; and approximately 12,200 miles of intrastate natural gas transportation pipelines and 20,090 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plants, and treating and conditioning facilities; and natural gas gathering, compression, treating, dehydration and processing, oil pipeline facilities. Further, it owns 5,700 miles of NGL pipelines; NGL fractionation and storage facilities; and other NGL storage assets and terminals. Additionally, the company provides crude oil transportation, terminalling, trucking, acquisition, and marketing activities; owns and operates approximately 18,000 miles of crude oil trunk and gathering pipelines; and sells and distributes motor fuels and other petroleum products under the Sunoco and EcoMaxx brands. It also offers natural gas compression; wholesale power trading; and carbon dioxide and hydrogen sulfide removal services, as well as management of coal and natural resources properties; sells standing timber; leases coal-related infrastructure facilities; and collects oil and gas royalties. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.
Improved Cash Liquidity: Cash and cash equivalents increased sharply to USD 3.57 billion as of Q3 FY25, compared with USD 0.31 billion at the end of FY24
Expansion in Natural Gas Transportation Volumes: Interstate natural gas transportation volumes rose 8% in Q3 FY25, while intrastate volumes increased 5%, compared with Q3 FY24
Increase in Interest Expense: Net interest expense increased to USD 890 million in Q3 FY25, up from USD 828 million in Q3 FY24
Decline in Consolidated Revenues: Total revenues declined to USD 19.95 billion in Q3 FY25 from USD 20.77 billion in Q3 FY24
Energy Transfer’s key investment risks include regulatory and permitting delays for large-scale pipeline projects, elevated leverage and refinancing exposure in a higher interest-rate environment, earnings sensitivity to commodity price volatility despite a largely fee-based model, execution risk on multi-billion-dollar growth projects, and potential environmental, legal, and policy-related challenges affecting long-term asset utilization
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 17.45 | 15.5 | 18.5 | 19.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue and Operating Income Performance: Energy Transfer LP reported consolidated revenues of USD 19.95 billion in Q3 FY25, compared with USD 20.77 billion in Q3 FY24, reflecting a modest year-on-year decline driven primarily by lower commodity prices and reduced crude and NGL sales volumes. Despite the revenue contraction, operating income remained largely stable at USD 2.15 billion in Q3 FY25, marginally lower than USD 2.18 billion in Q3 FY24, highlighting the resilience of the partnership’s largely fee-based business model.
Earnings and Profitability Trends: Net income attributable to partners declined to USD 1.02 billion in Q3 FY25, compared with USD 1.18 billion in Q3 FY24. Correspondingly, earnings per common unit decreased to USD 0.28 in Q3 FY25 from USD 0.33 in Q3 FY24, reflecting higher interest costs and lower contribution from commodity-linked activities. However, adjusted EBITDA stood at USD 3.84 billion in Q3 FY25, remaining broadly stable when adjusted for non-recurring items versus USD 3.96 billion in Q3 FY24, underscoring steady core cash-generating capability.
Operational Volume Growth and Asset Utilization: Operational performance showed strong momentum, with total NGL exports increasing 13% year-on-year, NGL transportation volumes rising 11%, and interstate natural gas transportation volumes up 8% in Q3 FY25. These record volumes reflect improved asset utilization across the partnership’s midstream and export infrastructure and reinforce Energy Transfer’s strategic positioning within U.S. natural gas and NGL logistics.
Cash Flow Generation and Distributions: Distributable cash flow attributable to partners reached USD 1.90 billion in Q3 FY25, supporting an increased quarterly cash distribution of USD 0.3325 per unit, representing an increase of more than 3% over Q3 FY24. Net cash provided by operating activities for the first nine months of FY25 amounted to USD 8.25 billion, compared with USD 8.92 billion in the prior-year period, reflecting lower net income and working-capital movements.
Capital Expenditure and Growth Initiatives: During FY25 year-to-date, Energy Transfer incurred USD 3.1 billion in growth capital expenditures and USD 711 million in maintenance capital, while reducing full-year growth capital guidance to approximately USD 4.6 billion from USD 5.0 billion, demonstrating enhanced capital discipline. Key projects progressed during the quarter include the Nederland Flexport NGL Export Expansion and the Mustang Draw II processing plant, reinforcing long-term earnings visibility.
Balance Sheet Strength and Liquidity: The partnership’s liquidity position strengthened materially, with cash and cash equivalents rising to USD 3.57 billion as of September 30, 2025, compared with USD 0.31 billion at December 31, 2024. Long-term debt increased to USD 63.10 billion, up from USD 59.75 billion, primarily due to refinancing activity and growth investments, while maintaining access to capital markets on competitive terms.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Energy Transfer LP. (NYSE: ET) at the current market price of USD 17.45, as on Jan 14, 2026 at 7:52 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas Midstream
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ET Energy Transfer LP |
- -% | 18.75 | 15.67 | 12.44 | 0.76 | 1.89 | 1.57 | 8.80 |
| EBBNF Enbridge Inc |
- -% | 24.60 | 11.01 | - | 1.47 | - | ||
| ENB Enbridge Inc |
0.08 0.15% | 54.55 | 32.07 | 17.33 | 1.67 | 1.73 | 2.98 | 10.28 |
| EPD Enterprise Products Partners LP |
0.08 0.22% | 36.60 | 10.72 | 9.90 | 1.17 | 2.09 | 1.76 | 9.64 |
| TNCAF TC Energy Corporation |
- -% | 14.50 | 4.36 | - | 3.23 | - |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 14, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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