Energy Transfer Ranks 434th in Trading Volume as Earnings Outlook Mixes 21.9% Revenue Growth with 8.6% EPS Drop and 7.4% Yield Amid Energy Sector Pressures

Energy Transfer (ET) closed August 5 with a 0.34% decline, trading a volume of $0.28 billion, ranking 434th in market activity. The pipeline operator prepares to release Q2 2025 earnings after hours on August 6, with consensus estimates pointing to $25.26 billion in revenue (up 21.9% year-over-year) and $0.32 per unit earnings (down 8.6% YoY). Historical data shows mixed performance, with two earnings misses and two beats in the past four quarters, averaging a 3.28% negative surprise.

Key factors shaping ET’s results include its fee-based revenue model, which accounts for ~90% of earnings, ensuring stable cash flow. Recent operational progress includes commissioning its first 10MW natural gas-fired power plant and leveraging rising hydrocarbon transport volumes across its 140,000-mile pipeline network. Strong NGL export capabilities—handling 1.1 million barrels/day to 55 countries—also position the firm to capitalize on export demand. Despite these positives, the stock trades at a discount with a 10.22x EV/EBITDA TTM, below the industry average of 11.46x.

Strategic catalysts include pending updates on the Lake Charles LNG project and AI-related natural gas supply projects. The company’s distribution yield of 7.4% remains attractive, with an 8.6% annualized increase in payouts over the past year. However, earnings pressures persist in the broader energy sector, with Q2 estimates forecasting a 22.9% YoY decline due to falling crude prices and narrow margins. ET’s -2.11% Earnings ESP and Zacks Rank #3 indicate a low probability of beating expectations this quarter.

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