Energy Transfer: Growth Tailwinds Are Surprisingly Underpriced

Energy Transfer (ET) has resolved its prior underperformance versus XLE peers, with upgraded EBITDA guidance and a constructive growth capital outlook. ET's Q1 results highlight broad-based volume expansion, notably 19% growth in NGL and refined product exports, supporting a stable, capacity-driven investment thesis. Management maintains its focus on achieving 3–5% annualized distribution growth, underpinned by structural demand from data centers and power distribution, with adjusted EBITDA expected to exceed $19.2B by FY28.