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Energy Transfer to Post Q1 Earnings: Buy, Hold or Sell the Stock?
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Key Takeaways
ET is expected to show year-over-year gains in Q1 revenues and earnings in the May 5 report.
ET's fee-based contracts are estimated to account for nearly 90% of earnings, adding stability.
ET may get a lift from NGL export volumes, pipeline throughput and new gas-supply deals.
Energy Transfer LP (ET - Free Report) is expected to post a year-over-year improvement in both revenues and earnings when it reports first-quarter 2026 results on May 5, before the market opens.
The Zacks Consensus Estimate for ET’s first-quarter revenues is pegged at $29.28 billion, indicating a 39.32% increase from the year-ago reported figure.
Image Source: Zacks Investment Research
The consensus estimate for earnings is pegged at 38 cents per unit. The Zacks Consensus Estimate for ET’s first-quarter earnings has remained unchanged in the past 60 days.
Image Source: Zacks Investment Research
ET’s Surprise History
Energy Transfer’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, while surpassing it once and reporting on par in the remaining quarter, resulting in an average negative surprise of 8.13%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ET’s Earnings ESP: Energy Transfer has an Earnings ESP of -2.12%.
Zacks Rank: Energy Transfer currently carries a Zacks Rank #3.
Stocks to Consider This Season
Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.
Fee-based contracts are estimated to have contributed nearly 90% of Energy Transfer’s earnings, a trend likely to have continued in the to-be-reported quarter. These predominantly fee-driven arrangements provide a stable and predictable revenue stream, supporting the company’s first-quarter performance.
Strong NGL export volumes are also expected to support results. The company’s export terminals offer significant flexibility and advanced ship-loading capabilities, facilitating shipments to more than 55 countries. With an export capacity of approximately 1.4 million barrels per day, this segment is likely to have made a meaningful contribution to first-quarter performance.
Energy Transfer continues to capitalize on its vast pipeline network spanning major production basins, benefiting from rising hydrocarbon output. Following higher transportation volumes of natural gas, crude oil and NGLs in the fourth quarter, a similar trend is expected to have persisted into the first quarter.
The firm signed an agreement with Oracle to provide natural gas to the three U.S. data centers, and also signed agreements with utilities to supply natural gas, which might have also boosted its performance in the first quarter.
ET Stock Trading at a Discount
Energy Transfer units are somewhat inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 10.4X compared with the industry average of 12.2X.
Energy Transfer operates an extensive network of nearly 140,000 miles of pipelines and related infrastructure across 44 states, positioning it well to capitalize on increasing U.S. production of oil, natural gas and natural gas liquids.
Ongoing investments aimed at expanding pipeline and processing capacity are expected to strengthen the company’s leadership in the midstream sector. Its strong LNG export capabilities, coupled with rising domestic demand, should continue to support overall performance growth.
The continuing crisis in the Middle East may also create new opportunities for Energy Transfer, as global demand for secure LNG supplies rises. The company’s expansive pipeline network is likely to have played a key role in transporting U.S. production to international markets.
Summing Up
Energy Transfer continues to benefit from rising demand by effectively leveraging its expansive U.S. asset base. Strategic acquisitions, along with organic growth initiatives, have further strengthened the company’s overall performance.
The long-term outlook remains positive, supported by its broad geographic footprint and ongoing focus on expanding operations through both organic investments and acquisitions. However, near-term weakness in the Bakken region might have put some pressure on storage margins.
For the to-be-reported quarter, earnings estimates have remained unchanged over the past 60 days. The stock has also outperformed its industry over the past year and is currently trading at a discount to peers. This valuation, combined with growing global demand for cleaner fuels, makes the stock worth considering for investors’ portfolios.
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Energy Transfer to Post Q1 Earnings: Buy, Hold or Sell the Stock?
Key Takeaways
Energy Transfer LP (ET - Free Report) is expected to post a year-over-year improvement in both revenues and earnings when it reports first-quarter 2026 results on May 5, before the market opens.
The Zacks Consensus Estimate for ET’s first-quarter revenues is pegged at $29.28 billion, indicating a 39.32% increase from the year-ago reported figure.
Image Source: Zacks Investment Research
The consensus estimate for earnings is pegged at 38 cents per unit. The Zacks Consensus Estimate for ET’s first-quarter earnings has remained unchanged in the past 60 days.
Image Source: Zacks Investment Research
ET’s Surprise History
Energy Transfer’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, while surpassing it once and reporting on par in the remaining quarter, resulting in an average negative surprise of 8.13%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ET’s Earnings ESP: Energy Transfer has an Earnings ESP of -2.12%.
Zacks Rank: Energy Transfer currently carries a Zacks Rank #3.
Stocks to Consider This Season
Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.
EOG Resources (EOG - Free Report) , Devon Energy (DVN - Free Report) and Evolution Petroleum (EPM - Free Report) currently have a Zacks Rank of #2 each. EOG, DVN and EPM currently have an Earnings ESP of +7.62%, +3.23% and +50.00%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped ET’s Q1 Earnings
Fee-based contracts are estimated to have contributed nearly 90% of Energy Transfer’s earnings, a trend likely to have continued in the to-be-reported quarter. These predominantly fee-driven arrangements provide a stable and predictable revenue stream, supporting the company’s first-quarter performance.
Strong NGL export volumes are also expected to support results. The company’s export terminals offer significant flexibility and advanced ship-loading capabilities, facilitating shipments to more than 55 countries. With an export capacity of approximately 1.4 million barrels per day, this segment is likely to have made a meaningful contribution to first-quarter performance.
Energy Transfer continues to capitalize on its vast pipeline network spanning major production basins, benefiting from rising hydrocarbon output. Following higher transportation volumes of natural gas, crude oil and NGLs in the fourth quarter, a similar trend is expected to have persisted into the first quarter.
The firm signed an agreement with Oracle to provide natural gas to the three U.S. data centers, and also signed agreements with utilities to supply natural gas, which might have also boosted its performance in the first quarter.
ET Stock Trading at a Discount
Energy Transfer units are somewhat inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 10.4X compared with the industry average of 12.2X.
Image Source: Zacks Investment Research
ET Stock’s Price Performance
ET’s units have gained 23.3% in the past year compared with the Zacks Oil and Gas Production Pipeline – MLB industry’s rise of 22.6%.
Image Source: Zacks Investment Research
Investment Thesis
Energy Transfer operates an extensive network of nearly 140,000 miles of pipelines and related infrastructure across 44 states, positioning it well to capitalize on increasing U.S. production of oil, natural gas and natural gas liquids.
Ongoing investments aimed at expanding pipeline and processing capacity are expected to strengthen the company’s leadership in the midstream sector. Its strong LNG export capabilities, coupled with rising domestic demand, should continue to support overall performance growth.
The continuing crisis in the Middle East may also create new opportunities for Energy Transfer, as global demand for secure LNG supplies rises. The company’s expansive pipeline network is likely to have played a key role in transporting U.S. production to international markets.
Summing Up
Energy Transfer continues to benefit from rising demand by effectively leveraging its expansive U.S. asset base. Strategic acquisitions, along with organic growth initiatives, have further strengthened the company’s overall performance.
The long-term outlook remains positive, supported by its broad geographic footprint and ongoing focus on expanding operations through both organic investments and acquisitions. However, near-term weakness in the Bakken region might have put some pressure on storage margins.
For the to-be-reported quarter, earnings estimates have remained unchanged over the past 60 days. The stock has also outperformed its industry over the past year and is currently trading at a discount to peers. This valuation, combined with growing global demand for cleaner fuels, makes the stock worth considering for investors’ portfolios.