Energy Transfer Earmarks Up to $5.5B for 2026 Growth Projects
Company projects record adjusted EBITDA up to $17.7 billion, shelving prior LNG plans to bolster its core natural gas and NGL infrastructure.
Energy Transfer LP (NYSE: ET) has laid out an ambitious capital investment plan for 2026, earmarking between $5.0 billion and $5.5 billion for growth projects designed to enhance its sprawling network of energy infrastructure. The Dallas-based midstream giant also issued a robust financial outlook, projecting adjusted EBITDA to reach between $17.3 billion and $17.7 billion for the year, signaling deep confidence in the long-term demand for North American energy.
The announcement represents a strategic pivot, doubling down on the company’s core natural gas and natural gas liquids (NGL) transportation businesses. Notably, the significant capital expenditure plan excludes any investment in the previously planned Lake Charles LNG export terminal. Energy Transfer announced in December 2025 that it was suspending the project to reallocate capital towards its vast domestic pipeline system, a move this new guidance confirms.
Shares of Energy Transfer were trading around $16.43 in the session following the announcement. With a market capitalization of nearly $57 billion, the company's stock has an average analyst price target of over $21, reflecting a strong consensus "Buy" rating and suggesting significant potential upside.
A significant portion of the growth capital is aimed at strengthening Energy Transfer's foothold in key production basins and connecting supply to demand centers. According to the company's outlook details, specific initiatives include the Nederland Flexport NGL expansion, the new Mustang Draw I and II processing plants in the Permian Basin, and enhancements to its NGL capabilities on the Lone Star Express and Gateway Pipelines.
In a forward-looking move that connects traditional energy infrastructure with the digital economy, Energy Transfer also highlighted new natural gas pipeline projects designed to serve the booming data center sector in Texas. As power consumption from artificial intelligence and cloud computing skyrockets, the company is positioning itself as a critical supplier for the gas-fired power plants needed to fuel this growth.
Analysts view the move as a prudent step, focusing on high-return, fee-based assets. The broader midstream sector is prized by investors for its stable cash flows, which are often insulated from commodity price volatility. With an annual dividend yield approaching 8%, Energy Transfer remains a popular choice for income-focused portfolios. The consensus among analysts points to a "Moderate Buy", with projections bolstered by the company's clear, near-term growth strategy.
The projected 2026 adjusted EBITDA of up to $17.7 billion would represent a significant increase in earnings, underscoring management's conviction that these investments will generate substantial returns. By prioritizing its domestic pipeline network—the arteries of the U.S. energy economy—Energy Transfer is betting that transporting, storing, and processing a growing volume of gas and NGLs is the most direct path to shareholder value in the years ahead.