# Energy Transfer LP (ET.US)

Canonical: https://gigainvestors.com/s/ET

Analysis as of: 2026-10-16T07:28:21.998Z. Financial observations: FY2004–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $19.88 per share; close as of 2026-10-15.

Estimated value: low $21.88 per share, central $24.90 per share, high $28.92 per share. Buy at or below the central value $24.90 per share. Valuation as of 2026-10-16T07:28:21.998Z; scenarios are not confidence intervals.

Expected annual return: 11.8% at the stated quote. About 11.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.07×

- FY2018: 0.10×

- FY2019: 0.13×

- FY2020: 0.08×

- FY2021: 0.13×

- FY2022: 0.09×

- FY2023: 0.11×

- FY2024: 0.11×

- FY2025: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.2%

- ROIC, second-lowest year: 2.8%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 18.3%

- Recent gross margin (lower of latest and 3-year median): 19.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.3%

- ROIC including acquisitions, ten-year median: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.4%

- FY2017: 3.9%

- FY2018: 7.5%

- FY2019: 10.1%

- FY2020: 2.8%

- FY2021: 10.8%

- FY2022: 9.4%

- FY2023: 9.2%

- FY2024: 9.2%

- FY2025: 9.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $27B

- Net income, five-year total: $24B

- Return on incremental invested capital: 31.2%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.7 pp

- Working capital / revenue, final three-year average: 7.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.18×

- FY2022: 1.13×

- FY2023: 1.32×

- FY2024: 1.15×

- FY2025: 0.87×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 3.9% vs 9.2%

- Per-share earnings: 0.92 to 1.41 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 12.5%

- Ordinary dilution, 5-year annual growth: 5.1%

- Market cap gain: $36B

- Cumulative retained earnings: -$4.5B

- Diluted shares, 10-year annual growth: 12.5%

- Diluted shares, 5-year annual growth: 5.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.4%

- Per-share value change: $0.48

- Per-share value, starting three-year median: $0.92

- Per-share value, ending three-year median: $1.41

- Buybacks concentrated in cheaper years (correlation): -0.60

- Average buyback yield: 1.2%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: $6.0B

- Cumulative net income, 10 years: $30B

- ROIC, first three-year median: 3.9%

- ROIC, last three-year median: 9.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.92

- FY2017: $0.83

- FY2018: $1.16

- FY2019: $1.33

- FY2020: -$0.24

- FY2021: $2.00

- FY2022: $1.54

- FY2023: $1.24

- FY2024: $1.41

- FY2025: $1.42

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 1.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.07×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.38×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: -4.0%

- FY2018: -6.6%

- FY2019: -4.5%

- FY2020: -8.4%

- FY2021: -5.4%

- FY2022: -4.1%

- FY2023: -4.9%

- FY2024: -5.3%

- FY2025: -3.7%

## Holders

- [David Tepper](https://gigainvestors.com/AM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Glenn Greenberg](https://gigainvestors.com/CCM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Samantha McLemore](https://gigainvestors.com/PTNT): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Leon Cooperman](https://gigainvestors.com/oa): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 1.9% a year for ten years · sales -0.1%

Story as of 2026-10-16T09:58:42.937Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.9% a year for ten years

- 2025-05-29: Energy Transfer signs 20-year deal to sell LNG to Japan's Kyushu Electric ([seekingalpha.com](https://seekingalpha.com/news/4453345-energy-transfer-signs-20-year-deal-to-sell-lng-to-japans-kyushu-electric?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-06-05: Energy Transfer says U.S. to require licenses to export ethane to China ([seekingalpha.com](https://seekingalpha.com/news/4455690-energy-transfer-says-u-s-to-require-licenses-to-export-ethane-to-china?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-21: Energy Transfer: Capturing Data Center Natural Gas Demand At 8% Yield ([finance.yahoo.com](https://finance.yahoo.com/news/energy-transfer-capturing-data-center-115247229.html))

- 2026-02-17: Energy Transfer raises 2026 EBITDA guidance to $17.85B while advancing major pipeline expansions ([seekingalpha.com](https://seekingalpha.com/news/4552655-energy-transfer-raises-2026-ebitda-guidance-to-17_85b-while-advancing-major-pipeline?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-23: Energy Transfer (ET) Could Be 13% Undervalued Following Raised EBITDA Guidance ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/energy-transfer-et-could-13-221009426.html))

- 2026-08-04: Energy Transfer Q2 Earnings Beat Estimates on NGL Growth, View Up ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/energy-transfer-q2-earnings-beat-160800282.html))

### Sales · FY2024–2025

sales -0.1%; source https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm; observed 2026-02-19.

- FY2016: $38B 

- FY2017: $41B 

- FY2018: $54B 

- FY2019: $54B 

- FY2020: $39B 

- FY2021: $67B 

- FY2022: $90B 

- FY2023: $79B 

- FY2024: $83B 

- FY2025: $83B 

### Gross margin · FY2025

gross margin 21.8%; source https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm; observed 2026-02-19.

- FY2016: 15.7% 

- FY2017: 17.1% 

- FY2018: 17.4% 

- FY2019: 20.5% 

- FY2020: 26.3% 

- FY2021: 19.9% 

- FY2022: 14.8% 

- FY2023: 17.6% 

- FY2024: 19.0% 

- FY2025: 21.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas midstream; annual sales are USD 82.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm (filed 2026-02-19); FY2025: revenue 82626000000; grossProfit 18007000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ET.US: Energy Transfer LP, together with its subsidiaries, provides energy-related services in the United States. It operates through Intrastate Transportation and Storage; Interstate Transportation and Storage; Midstream; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Investment in Sunoco LP; Investment in USA Compression Partners, LP (USAC); and All Other segments. The company owns and operates natural gas transportation pipelines and storage facilities; and approximately 12,200 miles of intrastate natural gas transportation pipelines and 20,090 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. In addition, the company owns and operates natural gas gathering pipelines, processing plants, and treating and conditioning facilities; and natural gas gathering, compression, treating, dehydration and processing, oil pipeline facilities. Further, it owns 5,700 miles of NGL pipelines; NGL fractionation and storage facilities; and other NGL storage assets and terminals. Additionally, the company provides crude oil transportation, terminalling, trucking, acquisition, and marketing activities; owns and operates approximately 18,000 miles of crude oil trunk and gathering pipelines; and sells and distributes motor fuels and other petroleum products under the Sunoco and EcoMaxx brands. It also offers natural gas compression; wholesale power trading; and carbon dioxide and hydrogen sulfide removal services, as well as management of coal and natural resources properties; sells standing timber; leases coal-related infrastructure facilities; and collects oil and gas royalties. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 1996 and is headquartered in Dallas, Texas.

### Why customers stay

Margins ranged from 17.6% to 21.8% during 2023–25; it earns 9.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 17.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 19%.

- Source: https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 21.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,0.024298200428706736],[2017,0.039329670488975225],[2018,0.07488314395602129],[2019,0.10112474352538722],[2020,0.028443047826023114],[2021,0.10832319028933621],[2022,0.09429928586000415],[2023,0.0915939841525623],[2024,0.09231196074506497],[2025,0.09180105389000345]]; median 0.09169751902128287. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 4548000000; upkeep 2859000000; owner earnings 1694000000. Growth capex / owner earnings = 2.6847697756788667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 170496132.98080254; upkeep 5789503867.019197; owner earnings 875496132.9808025. Growth capex / owner earnings = 0.19474230274474677.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 2822000000; owner earnings 6465000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 3381000000; owner earnings 5390619631.90184. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 0; upkeep 3134000000; owner earnings 5186000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 4164000000; owner earnings 5548015841.584158. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 6303000000; owner earnings 4280000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,1019000000],[2017,1008000000],[2018,1681000000],[2019,3054000000],[2020,2802000000],[2021,1898000000],[2022,3047000000],[2023,4248000000],[2024,4623000000],[2025,4725000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 10.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ET.US SharesStats.PercentInsiders = 10.290000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate -0.03995387629705499. Price 19.88; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -5.868094701240135 → FY2025 1.2407595303667198. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.93 per share

- 2016-11: $17.03 per share

- 2016-12: $19.31 per share

- 2017-01: $17.95 per share

- 2017-02: $18.84 per share

- 2017-03: $19.73 per share

- 2017-04: $18.66 per share

- 2017-05: $17.04 per share

- 2017-06: $17.96 per share

- 2017-07: $17.67 per share

- 2017-08: $17.37 per share

- 2017-09: $17.38 per share

- 2017-10: $17.75 per share

- 2017-11: $16.20 per share

- 2017-12: $17.26 per share

- 2018-01: $18.30 per share

- 2018-02: $15.50 per share

- 2018-03: $14.21 per share

- 2018-04: $15.80 per share

- 2018-05: $17.28 per share

- 2018-06: $17.25 per share

- 2018-07: $18.21 per share

- 2018-08: $17.50 per share

- 2018-09: $17.43 per share

- 2018-10: $15.54 per share

- 2018-11: $14.57 per share

- 2018-12: $13.21 per share

- 2019-01: $14.71 per share

- 2019-02: $14.79 per share

- 2019-03: $15.37 per share

- 2019-04: $15.12 per share

- 2019-05: $13.74 per share

- 2019-06: $14.08 per share

- 2019-07: $14.38 per share

- 2019-08: $13.61 per share

- 2019-09: $13.08 per share

- 2019-10: $12.59 per share

- 2019-11: $11.81 per share

- 2019-12: $12.83 per share

- 2020-01: $12.59 per share

- 2020-02: $11.08 per share

- 2020-03: $4.60 per share

- 2020-04: $8.40 per share

- 2020-05: $8.16 per share

- 2020-06: $7.12 per share

- 2020-07: $6.55 per share

- 2020-08: $6.42 per share

- 2020-09: $5.42 per share

- 2020-10: $5.15 per share

- 2020-11: $6.18 per share

- 2020-12: $6.18 per share

- 2021-01: $6.27 per share

- 2021-02: $7.64 per share

- 2021-03: $7.68 per share

- 2021-04: $8.61 per share

- 2021-05: $9.90 per share

- 2021-06: $10.63 per share

- 2021-07: $9.86 per share

- 2021-08: $9.30 per share

- 2021-09: $9.58 per share

- 2021-10: $9.51 per share

- 2021-11: $8.42 per share

- 2021-12: $8.23 per share

- 2022-01: $9.57 per share

- 2022-02: $10.14 per share

- 2022-03: $11.19 per share

- 2022-04: $11.08 per share

- 2022-05: $11.66 per share

- 2022-06: $9.98 per share

- 2022-07: $11.31 per share

- 2022-08: $11.71 per share

- 2022-09: $11.03 per share

- 2022-10: $12.77 per share

- 2022-11: $12.54 per share

- 2022-12: $11.87 per share

- 2023-01: $13.28 per share

- 2023-02: $12.66 per share

- 2023-03: $12.47 per share

- 2023-04: $12.88 per share

- 2023-05: $12.40 per share

- 2023-06: $12.70 per share

- 2023-07: $13.29 per share

- 2023-08: $13.47 per share

- 2023-09: $14.03 per share

- 2023-10: $13.15 per share

- 2023-11: $13.89 per share

- 2023-12: $13.80 per share

- 2024-01: $14.30 per share

- 2024-02: $14.64 per share

- 2024-03: $15.73 per share

- 2024-04: $15.73 per share

- 2024-05: $15.67 per share

- 2024-06: $16.22 per share

- 2024-07: $16.27 per share

- 2024-08: $16.10 per share

- 2024-09: $16.05 per share

- 2024-10: $16.48 per share

- 2024-11: $19.86 per share

- 2024-12: $19.59 per share

- 2025-01: $20.48 per share

- 2025-02: $19.29 per share

- 2025-03: $18.59 per share

- 2025-04: $16.54 per share

- 2025-05: $17.48 per share

- 2025-06: $18.13 per share

- 2025-07: $18.04 per share

- 2025-08: $17.72 per share

- 2025-09: $17.16 per share

- 2025-10: $16.83 per share

- 2025-11: $16.71 per share

- 2025-12: $16.49 per share

- 2026-01: $18.45 per share

- 2026-02: $18.84 per share

- 2026-03: $19.30 per share

- 2026-04: $20.19 per share

- 2026-05: $19.17 per share

- 2026-06: $19.12 per share

- 2026-07: $20.36 per share

- 2026-08: $21.51 per share

- 2026-09: $19.77 per share

- 2026-10: $20.48 per share

## Annual estimated value (USD per share)

- FY2016: low $1.54 per share, central $1.75 per share, high $2.04 per share

- FY2021: low $5.40 per share, central $7.72 per share, high $9.07 per share

- FY2022: low $11.57 per share, central $15.45 per share, high $18.09 per share

- FY2023: low $16.22 per share, central $18.45 per share, high $21.43 per share

- FY2024: low $17.43 per share, central $19.84 per share, high $23.04 per share

- FY2025: low $17.28 per share, central $19.66 per share, high $22.83 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1276187/000127618726000013/et-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.