energy transfer (NYSE: ET) The company will report fourth-quarter earnings results on February 17, which may have some investors wondering whether they should buy the stock ahead of the report. However, investors shouldn’t expect too many surprises when the master limited partnership (MLP) report is released, nor should they expect a big stock price reaction.
In fact, over the past three years, Energy Transfer’s stock price hasn’t moved 5% or more in the trading sessions following its earnings report. After the first quarter results of 2025 were announced in May this year, the maximum increase was 4.3%. Even so, there weren’t any major catalysts for the stock as the stock posted a modest increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and reiterated full-year guidance.
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The move may be more of a relief that the tariffs haven’t had a major economic impact on its business or planned growth projects.
Looking ahead to the upcoming fourth-quarter report, there should be less drama. The company issued 2026 guidance in early January, projecting adjusted EBITDA of $17.3 billion to $17.7 billion. This should equate to a 9% to 10% increase. At the same time, the company also warned investors that its 2025 adjusted EBITDA would be slightly below its forecast range of $16.1 billion to $16.5 billion. For 90% of fee-based businesses, these numbers shouldn’t change much.
At the same time, Energy Transfer also announced its growth capital expenditure (capex) budget for this year. The company plans to spend $5 billion to $5.5 billion on growth projects in 2026, up from $4.6 in its 2025 budget. The company targets an EBITDA build rate of less than 6x for its projects, which would generate mid-double-digit returns. Based on this build rate, Energy Transfer’s growth projects should add approximately $900 million in incremental EBITDA once projects are fully launched.
For now, investors shouldn’t be too worried about buying Energy Transfer ahead of earnings, as it likely won’t be a big move. However, here are the top high-yield dividend stocks worth owning in the midstream energy space.
Its forward yield is strong and well-covered (1.7x coverage in Q3) at 7.4%, and its balance sheet is in good shape. At the same time, it has some of the best growth project opportunities in the midstream sector, given its natural gas assets in the Permian. This gives it access to cheap natural gas, which has helped fuel its growth projects related to artificial intelligence data centers.
Energy Transfer, meanwhile, has one of the most attractive valuations in the space, with an enterprise value to EBITDA multiple of 7.7 based on the midpoint of its 2026 guidance. That makes the stock a buy for the long term.
Before buying shares of Energy Transfer, consider the following factors:
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Geoffrey Seiler works in the energy transmission field. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Should You Buy Energy Transfer Stock Before February 17? Originally posted by The Motley Fool