Energy Transfer: AI Relevance, Commodity Resilience, And Inflation Beating Distributions

ET secures long-term, firm natural gas transport contracts with AI data centers, supporting mid-teen returns and considerable earnings growth over the next decade. They also benefit from the ongoing Iran conflict, with further NGL export growth expected given the potentially tightened supply over the next five years and the expanded Flexport capacity. These reasons are also why ET has raised their organic growth capital guidance to $5.7B (+26.6% YoY) and FY2026 adj EBITDA to $18.4B (+15.1% YoY), supporting their multi-year growth prospects.