Energy Transfer raises 2026 EBITDA guidance by $500 million as Q2 distributable cash flow climbs 32%
$ET near its 52-week high of $21.11, up more than 2% since Energy Transfer (NYSE: ET) reported second-quarter 2026 results on Aug. 4. The midstream partnership raised full-year adjusted EBITDA guidance by $500 million, placing the range at $18.8 billion to $19.1 billion. The next confirmable milestone: the 442-mile Hugh Brinson Pipeline at full capacity, expected March 2027.
Key takeaways
- Energy Transfer raised its full-year 2026 adjusted EBITDA guidance by $500 million to a range of $18.8 billion to $19.1 billion.
- Second-quarter 2026 distributable cash flow reached $2.59 billion, up 32% year over year, while NGL exports set a company record with a 25% year-over-year increase.
- The company raised its distribution for the 19th consecutive quarter to $0.34 per unit, yielding approximately 6.43% at current prices.
- The 442-mile Hugh Brinson Pipeline came online ahead of schedule but is not expected to reach full capacity until March 2027.
- Units traded near the 52-week high of $21.11 and have gained more than 26% year to date.
$ET near its 52-week high of $21.11, up more than 2% since Energy Transfer (NYSE: ET) reported second-quarter 2026 results on Aug. 4. The midstream partnership raised full-year adjusted EBITDA guidance by $500 million, placing the range at $18.8 billion to $19.1 billion. The next confirmable milestone: the 442-mile Hugh Brinson Pipeline at full capacity, expected March 2027.
The print
Units traded around $20.20 to $20.28 before the Aug. 4 announcement. Distributable cash flow reached $2.59 billion for the quarter, up 32% year over year. NGL exports hit a company record, rising 25% year over year. The Hugh Brinson Pipeline, which moves natural gas from processing facilities in West Texas to lines south of the Dallas-Fort Worth metroplex, came online ahead of schedule, giving customers access to multiple destinations across Texas and Louisiana. Full capacity is not expected until March 2027. Energy Transfer also completed upgrades to its Lone Star Express NGL pipeline and pressed into service its third and fourth 10-megawatt natural-gas-fired generation plants. The power generation business covers 15 states with approximately 185 plants.
Management cited expanded takeaway capacity in key basins including the Permian as a driver of high network utilization. The guidance raise reflects the partnership's fee-based model, in which take-or-pay contracts provide insulation from short-term commodity price swings. The distribution was raised for the 19th consecutive quarter to $0.34 per unit, putting the yield at approximately 6.43% at current prices.
The setup
The trailing enterprise-value-to-EBITDA multiple stands at approximately 9.7. Units have added more than 26% year to date. Energy Transfer carries long-term power agreements serving, directly or indirectly, hyperscalers including Oracle, Cloudburst Technologies, and Meta Platforms. Management cited AI data center build-outs, power grid expansion, and Gulf Coast NGL export demand as structural drivers behind the expanded network.
The risk sits in natural gas prices, which have declined approximately 29% since peaking in late January. If upstream producers respond by trimming drilling budgets or curtailing production, gathering and processing volumes could contract across regional basins. Fee-based contracts limit but do not eliminate that exposure. Brinson at full capacity in March 2027 is the next test of whether volume growth tracks the revised guidance range.
Related reading
Filed by the newsroom of MarketPR on August 16, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.