Should You Buy, Sell or Hold ET Stock Ahead of Q2 Earnings?

• Fee-based contracts expected to contribute nearly 90% of quarterly revenue, providing stable and predictable cash flows
• Strong NGL export volumes with capacity of approximately 1.4 million barrels per day likely supported Q2 performance
• ET trades at a discount with EV/EBITDA of 10.31X versus industry average of 12.07X, and outpaced its industry with 1.4% gain over three months

Summary: Energy Transfer Q2 Earnings Preview

Key Company & Event:

Energy Transfer LP (ET) is scheduled to report Q2 2026 earnings on August 4 before market open.

Financial Expectations:

• Consensus revenue estimate: $31.09 billion, representing a 61.57% year-over-year increase
• Consensus earnings estimate: $0.39 per unit
• Earnings estimate has moved up 5.41% over the past 60 days

Growth Drivers:

• Fee-based contracts expected to contribute approximately 90% of quarterly results, providing stable revenue streams
• Strong NGL export volumes with capacity of 1.4 million barrels per day
• Increased natural gas, crude oil, and NGL transportation volumes
• Expanded processing plants in the Permian Basin

Valuation Metrics:

• Current EV/EBITDA (TTM): 10.31X, below industry average of 6X
• Stock price performance: Up 1.4% over past three months versus 0.5% industry gain

Investment Highlights:

ET operates nearly 140,000 miles of pipelines across 44 states, positioning it to benefit from rising U.S. hydrocarbon production. The company's diversified asset base, LNG export capabilities, and disciplined capital allocation support long-term growth prospects.

Outlook:

Zacks model does not conclusively predict an earnings beat (Earnings ESP of 0.00%), though the company carries a Zacks Rank #3 (Hold). The long-term outlook remains favorable due to strategic expansion projects and extensive infrastructure network.