Energy Transfer raises 2026 adjusted EBITDA guidance to $19.7–$19.9 billion
Key Facts
Energy Transfer raised its annual guidance range for adjusted EBITDA in 2026 to $19.7–$19.9 billion from $18.8–$19.1 billion, according to its third-quarter results statement issued on November 3. The revision follows adjusted EBITDA of $5.03 billion in the three months ended September 30, up 31% from $3.84 billion in the corresponding period of 2025. The company also reported adjusted distributable cash flow attributable to partners of $2.52 billion, compared with $1.90 billion a year earlier, an increase of 33%. Net income attributable to partners rose to $1.21 billion from $1.02 billion. These figures reflect the quarter in which the annual guidance was raised, while the statement provided no estimate of, or comparison with, market expectations.
Interstate natural gas transportation volumes rose 14% year over year in the third quarter, reaching a partnership record, while natural gas gathering volumes in the midstream segment increased 6%, also setting a record. The company attributed higher gathering and processing volumes in most regions to the startup of new and upgraded plants in the Permian, and to dry gas gathering in the Northeast and Ark-La-Tex. It said increased natural gas liquids production was linked to higher utilization of Permian plants. According to the company, no single segment contributed more than one-third of consolidated adjusted EBITDA in the quarter. The details put volume growth at the center of the company's account of the period's performance, alongside its reported financial results.
For investment, Energy Transfer expects to spend $5.4–$5.6 billion on growth projects in 2026 and about $7 billion in 2027. Growth capital expenditures totaled $1.30 billion in the third quarter, compared with $284 million in maintenance capital expenditures. The previous annual guidance, announced alongside second-quarter results in August, ranged from $18.8 billion to $19.1 billion, after being raised at the time from $18.2–$18.6 billion. In that quarter, adjusted EBITDA was $5.07 billion, up 31% from $3.87 billion in the second quarter of 2025. The company is maintaining its growth-project spending outlook for next year at about $7 billion, with formal guidance due on the next quarterly results call.
Projects cited by the company include the South Mississippi pipeline, which received a positive final investment decision in November. The company signed long-term, demand-based transportation agreements to support construction of the planned 215-mile pipeline, with capacity of 1.2 billion cubic feet per day and an expected cost of about $1.6 billion. The project is expected to enter service in 2030, giving customers broader access to natural gas from multiple basins in the southeastern United States, according to the company. The first phase of the Hugh Brinson pipeline also entered full service on September 1, ahead of schedule. The second phase remains scheduled for completion in the first quarter of 2027.
In October, the company announced its acquisition of Waco Midstream in an add-on deal valued at about $2.6 billion, comprising cash and stock consideration. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. On distributions, Energy Transfer declared a quarterly cash distribution of $0.3425 per common unit for the quarter ended September 30, equivalent to $1.37 on an annualized basis. The distribution is more than 3% higher than in the third quarter of 2025 and marked the twentieth consecutive increase. Available closing data for the stock are from the October 27, 28 and 29 sessions and do not include a price for the results announcement session on November 3.