Should You Buy Energy Transfer Stock Before Feb. 17?

Energy Transfer (NYSE: ET) volition study its fourth-quarter net results connected Feb. 17, which whitethorn spark immoderate investors to wonderment whether they should bargain the banal earlier the report. However, investors shouldn't expect excessively galore surprises erstwhile the maestro constricted partnership's (MLP) study is released, oregon for a large banal terms reaction.

In fact, implicit the past 3 years, Energy Transfer's banal has not moved by 5% oregon much successful either absorption successful the trading league instantly pursuing its net report. The biggest determination was a 4.3% summation that followed its first-quarter 2025 results announcement this past May. Even then, determination wasn't immoderate large catalyst that moved the stock, arsenic it turned successful humble adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) maturation and reiterated its full-year guidance.

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The determination was astir apt much of a suspiration of alleviation that tariffs were not having a large interaction connected its concern oregon the economics of its planned maturation projects.

Looking toward its upcoming Q4 report, determination should beryllium adjacent little drama. The institution already issued its 2026 guidance successful aboriginal January, projecting adjusted EBITDA of $17.3 cardinal to $17.7 billion. That should equate to maturation of betwixt 9% to 10%. Meanwhile, it besides already warned investors that its 2025 adjusted EBITDA would beryllium somewhat beneath its $16.1 cardinal to $16.5 cardinal forecast range. With a 90% fee-based business, determination shouldn't beryllium overmuch question with these numbers.

At the aforesaid time, Energy Transfer besides announced its maturation superior expenditure (capex) fund for this year. It plans to walk betwixt $5 cardinal and $5.5 cardinal connected maturation projects successful 2026, which is up from the $4.6 it budgeted for 2025. It is targeting EBITDA physique rates beneath 6 times for its projects, which would output mid-teen returns. Based connected that physique rate, Energy Transfer's maturation projects should adhd astir $900 cardinal successful incremental EBITDA erstwhile the projects are afloat ramped up.

At this time, investors shouldn't interest excessively overmuch astir buying Energy Transfer up of earnings, arsenic it apt isn't a large needle mover. However, this is simply a apical high-yield dividend banal to ain successful the midstream vigor space.

It sports a robust, well-covered guardant output (1.7 times sum ratio successful Q3) of 7.4%, and its equilibrium expanse is successful coagulated shape. Meanwhile, it has immoderate of the champion maturation task opportunities successful the midstream space, fixed its earthy state assets successful the Permian. This gives it entree to inexpensive earthy gas, which is helping thrust its maturation projects tied to AI information centers.