Energy Transfer reported a strong 1Q26 beat and raised its 2026 EBITDA guidance, driven by optimization gains. Goldman Sachs maintains a Neutral rating with a $21 price target, focusing on long-term recontracting headwinds.
Key Takeaways
- 1.Energy Transfer reported a strong 1Q26 EBITDA of $4,937m, significantly beating Goldman Sachs and consensus estimates due to high optimization and spread gains.
- 2.The company raised its 2026 EBITDA guidance by $750m to $18.2-$18.6b, though a significant portion ($500m) is attributed to 1Q26 outperformance.
- 3.ET is making progress on natural gas projects related to data centers and power generation, including a new agreement with the Nexus Hubbard AI Hyperscale campus.
Table of Contents
- Key Takeaways
- Earnings Summary
- Higher 2026 guidance screens conservative
- Upside growth from exports
- Crude growth
- Gas exposure remains in focus
- Updating estimates
- Valuation and Risks
- Disclosure Appendix
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Authors
John MackayJackie KoletasOlivia FosterBen Lund
Securities
ETSUNENBOKE
Themes
Data Center Energy DemandMidstream Optimization SpreadsGeopolitical Impact on Midstream
Regions
North AmericaUnited States