Energy Transfer Poised for Accelerated Growth in 2026

Got story updates? Submit your updates here. ›

Energy Transfer, a master limited partnership (MLP), is poised for accelerated earnings growth in 2026 as it completes several major expansion projects, including pipeline expansions and new facilities to supply growing demand from AI data centers. The company expects to generate between $17.5 billion and $17.9 billion in adjusted EBITDA this year, representing 9.2% to 11.7% year-over-year growth.

Why it matters

Energy demand is expected to continue growing, fueled by the rise of AI data centers and other catalysts. Energy Transfer's ability to execute on its expansion plans and capitalize on this growing demand positions the company for strong financial performance in the coming years.

The details

Energy Transfer's earnings growth slowed in 2025 due to the impact of lower oil prices, fewer organic expansion project completions, and no new acquisitions. However, the company expects a major acceleration in earnings growth this year. In addition to benefiting from higher oil prices, Energy Transfer will see contributions from several expansion projects that came online in 2025 and 2026, including the Nederland Flexport NGL expansion, the Mustang Draw I & II plants, phase I of the Hugh Brinson Pipeline, and projects to supply gas to data centers.

• Energy Transfer expects to generate between $17.5 billion and $17.9 billion of adjusted EBITDA in 2026, representing 9.2% to 11.7% year-over-year growth.
• The company completed its Nederland Flexport NGL expansion last year.
• Energy Transfer expects to complete phase I of its Hugh Brinson Pipeline and several projects to supply gas to data centers in 2026.
• Phase II of the $2.7 billion Hugh Brinson pipeline is expected to be completed in early 2027.
• The $5.6 billion Transwestern Pipeline expansion project is scheduled to be completed in the fourth quarter of 2029.

What’s next

Energy Transfer is investing between $5 billion and $5.5 billion into growth capital projects this year, which will help fund expansions entering service in 2026 and beyond. The company has more projects under development, many of which will expand its gas pipeline infrastructure to support growing demand from AI data centers and power generation facilities.