Energy Transfer Partners, L.P. engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. The company's Intrastate Transportation and Storage segment transports natural gas from various natural gas producing areas through connections with other pipeline systems, as well as through its ET Fuel System and HPL System. This segment owns and operates approximately 7,900 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas. Its Interstate Transportation and Storage segment provides natural gas transportation and storage services; owns and operates approximately 11,800 miles of interstate natural gas pipelines; and has interests in various natural gas pipelines. The company's Midstream segment gathers, compresses, treats, blends, processes, and markets natural gas. It owns and operates natural gas and natural gas liquids (NGL) gathering pipelines, natural gas processing plants, natural gas treating facilities, and natural gas conditioning facilities. The company's NGL and Refined Products Transportation and Services segment transports mixed NGLs and other hydrocarbons; stores mixed NGLs, NGL products, and petrochemical products; and separates mixed NGL streams into purity products. This segment owns and operates various NGL pipelines, NGL and propane fractionation facilities, and NGL storage facilities. Its Crude Oil Transportation and Services segment engages in the transportation, terminalling, and acquisition and marketing of crude oil; and operates crude oil trunk and gathering pipelines. The company's All Other segment engages in the natural gas compression equipment business; provides natural gas compression equipment and compression services; manages coal and natural resources property, sells standing timber, and leases coal-related infrastructure facilities; and generates electrical power. Energy Transfer Partners, L.P. was founded in 1995 and is based in Dallas, Texas.
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Three Energy Dividend Stocks Offer Big Yields in August
Enterprise Products Partners, Energy Transfer, and Enbridge are highlighted as top energy dividend stocks for August, each posting record volumes and raising distributions. Enterprise Products Partners reported record second-quarter distributable cash flow of $2.3 billion, up 21% year over year, with 1.9 times distribution coverage, while Energy Transfer raised its full-year 2026 adjusted EBITDA guidance for the second time this year to between $18.8 billion and $19.1 billion. Enbridge's shares have pulled back 9.59% over the past month, which improves the entry point, as CEO Greg Ebel cites the best macro environment for growth in 10 years. All three offer growing distributions backed by fee-based cash flows and direct exposure to LNG export, NGL export, and power and data center demand.
Oracle Stock Falls on Six-Month Delay to New Mexico Gas Pipeline
Oracle shares dropped nearly 4% on Friday after Transwestern Pipeline, a subsidiary of Energy Transfer, said the Green Chile natural gas project in New Mexico would be delayed by six months. The pipeline is crucial to powering Oracle's massive Project Jupiter data center complex, which plans to use Bloom Energy fuel cells to supply up to 2.5 gigawatts of electricity. Transwestern revised the in-service date to February 1, 2027, from the original August 15, 2026, citing repeated denials by the state over routing on public land. An Oracle spokesman told Bloomberg that Project Jupiter remains on schedule and the company continues to work closely with partners.
Energy Transfer Raises Dividend for 19th Straight Quarter and Lifts 2026 EBITDA Guidance
Energy Transfer extended its streak of quarterly distribution increases to 19 consecutive quarters with a nearly 1% hike in July, while also raising its full-year 2026 adjusted EBITDA guidance to a range of $18.8 billion to $19.1 billion, up from a prior forecast of $18.2 billion to $18.6 billion. Second-quarter distributable cash flow rose to $2.59 billion from $1.96 billion a year earlier, supporting the payout. The pipeline operator's stock yields 6.7%, and co-CEO Thomas Long noted advanced negotiations with customers in six states to supply additional natural gas volumes to data centers and nearby power facilities.
Nat-Gas Prices Edge Higher on Warmer US Weather Forecasts
September Nymex natural gas futures settled slightly higher on Wednesday, closing up 0.006 dollars or 0.22 percent, as forecasts for warmer US weather pointed to increased air-conditioning demand. The Commodity Weather Group said forecasts shifted warmer, with above-average temperatures expected across the Western US through August 14. Gains were limited by expectations for a larger-than-normal weekly storage build, with consensus for Thursday's EIA report to show a 30 billion cubic feet increase, above the five-year average of 23 billion cubic feet. Prices also faced headwinds from Energy Transfer's announcement that the Hugh Brinson pipeline will reach full capacity of 1.5 billion cubic feet per day by September 1, boosting domestic supplies. US dry gas production on Wednesday was 111.4 billion cubic feet per day, up 2.6 percent year-over-year, while lower-48 gas demand was 81.4 billion cubic feet per day, up 8.4 percent year-over-year, according to BNEF.
Energy Transfer Raises Dividend for 19th Straight Quarter to $0.34 Per Share
Energy Transfer has increased its quarterly cash distribution for the 19th consecutive quarter, bringing the payout to $0.34 per share, or $1.36 annually, for a yield of 6.72%. The pipeline operator, structured as a master limited partnership, benefits from long-term fee-based contracts and a growing project backlog, including agreements to supply natural gas to three Oracle data centers and a 20-year deal with Entergy Louisiana. Management aims to raise the distribution by 3% to 5% annually, supported by steady cash flow and rising energy demand tied to AI infrastructure. Investors receive a Schedule K-1 for tax reporting instead of a standard 1099-DIV.
Energy Transfer and Enterprise Products Partners Offer High Yields and Growing Payouts
Energy Transfer and Enterprise Products Partners stand out as midstream energy companies offering both high dividend yields and consistent distribution growth. Energy Transfer yields about 6.7%, more than six times the S&P 500's yield, and has increased its distribution for 18 consecutive quarters while targeting annual growth of 3% to 5%. Enterprise Products Partners yields roughly 6% and has raised its distribution for 28 consecutive years, with first-quarter 2026 adjusted EBITDA up 10% to $2.7 billion and distribution coverage of 1.8 times. Both companies generate largely fee-based cash flow from massive pipeline networks, reducing commodity-price exposure, and are investing in infrastructure to meet growing demand from liquefied natural gas exports and AI-driven data centers.
Three High-Yield Dividend Stocks Offer Strong Cash Flow and Growth Potential
Brookfield Infrastructure, Energy Transfer, and Realty Income are generating substantial excess cash flow that supports both high-yield dividends and growth investments. Brookfield Infrastructure reported $709 million in funds from operations in the first quarter, paying out 65% of that as dividends, and has over $9 billion in expansion projects in its backlog. Energy Transfer produced $2.7 billion in distributable cash flow in the first quarter, distributing nearly $1.2 billion to investors, and plans to invest $5.5 billion to $5.9 billion in organic expansion projects this year. Realty Income generated nearly $1.1 billion in adjusted funds from operations in the first quarter, paid out about 70% as dividends, and expects over $980 million in adjusted free cash flow this year to reinvest in new properties, targeting $9.5 billion in total investment volume. Each company's retained cash flow is funding projects that should drive dividend growth and stock price appreciation, enhancing total returns.
Three High-Yield Dividend Stocks to Consider Before August
The Motley Fool highlights Energy Transfer, Pfizer, and United Parcel Service as three high-yield dividend stocks that are not yield traps. Energy Transfer offers a 6.6% forward yield and could see 3% to 5% annualized distribution growth driven by AI data center demand. Pfizer sports a nearly 7% yield and trades at 8.5 times forward earnings, with stabilizing results suggesting it can maintain its dividend despite a 2028 patent cliff. United Parcel Service has a forward yield of 5.7% and a 16-year track record of annual increases, with an improving macro backdrop and rising freight rates pointing to a further recovery.
Energy Transfer, Chevron, and ExxonMobil Are High-Yield Dividend Stocks for a Lifetime of Rising Passive Income
Energy Transfer, Chevron, and ExxonMobil are highlighted as high-yield dividend stocks capable of delivering a lifetime of rising passive income. Energy Transfer, a massive midstream company with a 6.6% yield, operates a 140,000-mile pipeline network that generates 90% of its revenue from fees, insulating it from commodity price swings. Chevron yields over 3.7% and has raised its dividend for 39 consecutive years, with growth prospects boosted by its acquisition of Hess and a 30% stake in the Guyana Stabroek Block. ExxonMobil, the largest U.S. oil major, yields 2.8% and has increased its dividend for 43 straight years, supported by a strong balance sheet and strategic acquisitions like Pioneer Natural Resources.
Brookfield, Energy Transfer, and Prologis Are Quietly Powering the AI Boom
Three companies beyond the semiconductor sector are capitalizing on the artificial intelligence boom. Brookfield Corporation has launched an inaugural AI infrastructure fund targeting up to $100 billion in assets, with initial investments in fuel cells for data centers and a new full-stack AI services company, as part of a strategy to achieve 25% annual earnings growth over five years. Energy Transfer is building large-scale gas pipelines and laterals to serve gas-fired power plants and data centers, with multiple additional projects expected to be approved. Prologis has started $2.1 billion in new data center projects this year, bringing its total investment to nearly $4 billion, and has a pipeline of 5.8 gigawatts of data center projects, with potential to develop over 10 gigawatts in the next decade.
Bloom Energy, Brookfield Renewable, and Energy Transfer Are the Three Energy Stocks I'd Buy With My Next $1,000
A Motley Fool analyst identifies Bloom Energy, Brookfield Renewable, and Energy Transfer as top energy stocks to buy amid surging power demand driven by artificial intelligence and other catalysts. Bloom Energy's fuel cells are becoming a go-to on-site power source for data centers, with Brookfield Asset Management expanding its AI infrastructure partnership to $25 billion and Oracle planning to deploy up to 2.8 gigawatts of Bloom's fuel cells. Brookfield Renewable expects to invest $9 billion to $10 billion over five years to grow its renewable energy platform, targeting over 10% annual funds from operations per share growth and 5% to 9% annual dividend increases. Energy Transfer is building new gas pipelines, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Desert Southwest Pipeline expansion, to support rising gas power demand and aims to grow its nearly 7% yielding distribution by 3% to 5% per year.
Oracle Data Center Plan Hits New Setback in New Mexico
Oracle faces a fresh setback in New Mexico after state regulators rejected a natural gas pipeline that would help power its planned Project Jupiter data center. The 17-mile pipeline, proposed by Energy Transfer, was designed to move as much as 400 million cubic feet of gas per day to the site, where Project Jupiter could rely on up to 2.5 gigawatts of gas-powered fuel cells from Bloom Energy. New Mexico officials say the project would consume significant water, worsen emissions, and generate too little revenue for the state. The rejection makes an August 15 in-service target highly unlikely and could push construction into next year.
Leon Cooperman’s Top 3 Stocks: Vertiv, Rocket Companies, and Energy Transfer Analyzed
Billionaire Leon Cooperman’s Omega Advisors holds three stocks that each warrant a different call, according to a recent analysis. Vertiv Holdings, trading at $304.57, has surged 88.08% year-to-date and now trades at 52 times forward earnings, suggesting patience is warranted despite strong AI data center demand. Rocket Companies, at $14.60, saw first-quarter revenue explode 167.1% to $2.94 billion after integrating Mr. Cooper and Redfin, but shares are down 24.59% year-to-date and the bull case still requires falling interest rates. Energy Transfer, at $19.91, looks most compelling with a 6.65% yield, raised full-year adjusted EBITDA guidance to a range of $18.20 billion to $18.60 billion, and locked-in gas supply agreements with Oracle for AI data centers.
Energy Transfer raises 2026 growth capex guidance to as much as $5.9 billion
Energy Transfer has raised its 2026 growth capital expenditure guidance to a range of $5.5 billion to $5.9 billion, up from an initial estimate of $5 billion to $5.5 billion. The spending is backed by long-term, fee-based volume commitments and targets mid-teens returns, with a substantial portion directed toward natural gas pipeline projects to meet demand from AI data centers and gas-to-electricity trends. The company reported first-quarter revenue of $27.7 billion, up 32% year over year, and adjusted EBITDA of $4.94 billion, while distributable cash flow of $2.7 billion easily covers its distribution. Energy Transfer has raised distributions for 18 consecutive quarters and plans annual increases of 3% to 5%, though the heavy capex may keep its valuation multiple compressed until assets enter service around late 2027 to 2028.
AMLP Holdings Raise Distributions, Yield Nears 8% Heading Into 2027
The Alerian MLP ETF, trading near $53 and up 17% year to date, saw its quarterly distribution rise to $1.03, pushing its forward yield to roughly 7.8%. Every major holding raised payouts in the first half of 2026, with Enterprise Products Partners extending its 27-year distribution growth streak with a 3% increase to $0.55 per unit, and MPLX delivering a 13% raise to $1.08 while reaffirming that pace through 2027. Energy Transfer lifted its distribution more than 3% to $0.3375 and raised 2026 EBITDA guidance by $750 million to a range of $18.2 to $18.6 billion, while Western Midstream raised to $0.93 and posted record first-quarter adjusted EBITDA of $683 million. Risks include leverage creep at MPLX, which climbed to 3.7 times after three acquisitions, a 26% one-month drop in WTI crude to about $70, and the fund’s C-corp tax structure, which contributed to its five-year total return of 117% trailing underlying MLPs such as Western Midstream at 216% and MPLX at 198%.
Energy Transfer's Fee-Based Model to Drive 90% of 2026 Earnings
Energy Transfer expects nearly 90% of its 2026 earnings to come from fee-based contracts, limiting commodity price exposure and supporting stable cash flows. The partnership is advancing the first phase of its Hugh Brinson Pipeline expansion, a fully contracted 400-mile, 42-inch pipeline with nearly 1.5 billion cubic feet per day of capacity from the Waha and Midland Basin to Maypearl, Texas, backed by long-term agreements with investment-grade customers. It is also investing in natural gas processing, NGL export capacity, and pipeline expansions to meet rising demand from LNG exports, power generation, and industrial users, all under fee-based contracts. The Zacks Consensus Estimate projects earnings per unit will rise 18.18% in 2026 and 6.91% in 2027. Units have gained 4% over the past three months, outperforming the industry's 2.9% rally.
Global LNG Demand Could Surge 65% by 2050, Boosting These Energy Stocks
Global liquefied natural gas demand could surge 65% by 2050, adding 700 million tons annually from 2025 levels, according to Shell's LNG Outlook 2026. ExxonMobil, a major oil producer with significant LNG operations, expects to double its LNG portfolio by 2030 and sees demand rising 3% annually through 2050. Cheniere Energy, the largest U.S. LNG producer, generated $1.67 billion in distributable cash flow in the first quarter and raised its 2026 forecast to as much as $5.25 billion. Energy Transfer, a midstream operator with a 7.1% dividend yield, posted $185 million in EBITDA growth in its natural gas liquids and refining business in the first quarter and stands to benefit from data center demand for pipeline-sourced energy.
Global LNG Demand Could Surge 65% by 2050, Shell Outlook Shows
Global liquefied natural gas demand is projected to surge 65% by 2050, adding 700 million tons annually from 2025 levels, according to Shell's LNG Outlook 2026. The global LNG market is also expected to grow at a compound annual rate of 7.1% from this year through 2035. China's LNG imports have risen 258% since 2016, and the number of LNG-importing countries increased to 49 from 36 over that period. ExxonMobil is investing in four large-scale LNG projects and expects to double its LNG portfolio by 2030 from 2020 levels, potentially boosting output by 40 million metric tons annually. Cheniere Energy, the largest domestic LNG producer, generated 1.67 billion dollars in distributable cash flow in the first quarter and raised its 2026 forecast to between 4.75 billion and 5.25 billion dollars. Energy Transfer, a major midstream operator, posted first-quarter natural gas liquids and refining EBITDA growth of 185 million dollars and offers a 7.1% dividend yield.
Energy Transfer prices $1.75 billion dual-tranche junior subordinated notes offering
Energy Transfer announced the pricing of a dual-tranche public offering of junior subordinated notes due 2057, raising an aggregate principal amount of $1.75 billion. The offering is split into $650 million of series 2026A notes with an initial annual interest rate of 6.550% and $1.1 billion of series 2026B notes with an initial annual interest rate of 6.700%, both priced at 100% of face value. The offering is expected to settle on July 20, 2026, generating net proceeds of approximately $1.73 billion. The company plans to use the funds to redeem all outstanding 6.500% Series H Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units during their redemption window starting August 15, 2026, with remaining proceeds allocated to refinancing existing indebtedness, including repayment of commercial paper and borrowings under its revolving credit facility, and for general partnership purposes.
Energy Transfer wins $392M judgment in Texas winter storm dispute
Energy Transfer won a $392 million judgment in a Texas court over a failed challenge from San Antonio’s city-owned utility CPS Energy regarding gas prices during the February 2021 Winter Storm Uri. The judge found that the prices charged by Energy Transfer were consistent with charges to other parties during the weeklong period of sub-freezing temperatures that caused a spike in electricity demand. The award includes $263.6 million that CPS Energy had disputed and refused to pay, $119 million in interest, and $9.3 million in attorney fees. During the storm, Energy Transfer sold electricity at the maximum rate of $9,000 per megawatt-hour as instructed by the state’s grid operator, invoicing $308 million, while CPS Energy argued that $51.9 million was the correct amount and filed a lawsuit seeking a declaration that it did not owe the remaining balance.
Energy Transfer Seen as Better Energy Stock Than Occidental Petroleum for Second Half of 2026
Energy Transfer is viewed as a more attractive energy investment than Occidental Petroleum for the second half of 2026, according to an analysis. Energy Transfer, a major midstream company operating over 140,000 miles of pipeline, is better insulated from volatile oil prices and benefits from rising natural gas demand tied to AI data centers, while offering a forward yield of 6.9%. Occidental Petroleum, primarily an upstream producer, is more sensitive to crude oil prices and carries a lower forward yield of 2.3%, though it can sustain its capex and dividends with WTI crude above $40-$45 per barrel. Energy Transfer trades at seven times this year's adjusted EBITDA, compared to four times for Occidental, but its stability and AI exposure make it the preferred pick amid uncertain oil prices.
Energy Transfer Could Outperform S&P 500 in Second-Half 2026
Energy Transfer has rallied 17% year-to-date, beating the S&P 500's 9% gain, and is positioned to continue outperforming in the second half of 2026. The midstream giant operates over 140,000 miles of pipeline and is insulated from commodity price swings because it charges toll-like fees, yet record crude oil and NGL volumes in the first quarter of 2026 and new long-term gas-supply deals with utilities and data centers are revaluing it as an AI infrastructure play. Management raised its 2026 adjusted EBITDA growth forecast to 14%-16% from a prior 9%-12%, accelerating from 3% growth in 2025. With an enterprise value of $135.3 billion, the stock trades at just seven times this year's adjusted EBITDA and offers a 6.9% forward yield, while its 2025 adjusted distributable cash flow of $8.2 billion easily covered $4.6 billion in distributions, leaving room for future hikes. Investors should note that Energy Transfer is a master limited partnership requiring a K-1 tax form.
Brookfield Infrastructure Is the First Energy Stock I Plan to Buy in July
Brookfield Infrastructure has surpassed Energy Transfer as the author's top energy stock to buy in July, driven by a more compelling valuation and faster, broader AI-fueled growth. While Energy Transfer units have risen over 15% this year, pushing its distribution yield down to 7%, Brookfield Infrastructure shares have fallen more than 15%, lifting its dividend yield to 4.7% and creating a better entry point. Brookfield has increased its dividend for 17 consecutive years at a 9% compound annual rate and expects 5% to 9% annual dividend growth going forward, outpacing Energy Transfer's projected 3% to 4% distribution growth. The company's funds from operations per share grew 10% in the first quarter, and it anticipates more than 10% annual FFO per share growth, supported by over $9 billion in growth capital projects and recent acquisitions including a U.S. refined products pipeline system and a South Korean industrial gas business. Brookfield's diversified AI-related investments span powered data centers, natural gas pipelines, utility projects, and semiconductor supply chain infrastructure, offering multiple catalysts compared to Energy Transfer's focus on gas pipelines.
Energy Transfer expands Nederland terminal with new ethane and LPG capacity
Energy Transfer announced a major expansion of its Nederland NGL Export Terminal, targeting completion by 2029. The project adds 240,000 barrels per day of ethane export capacity and 55,000 barrels per day of LPG capacity, along with new ship docks and expanded storage. The expansion is backed by long-term customer commitments extending into the 2040s and is expected to push NGL export capacity to industry-leading levels.
Energy Transfer Stock Still Looks Undervalued After 166% Run
Energy Transfer has returned about 166% over the past five years, yet the stock still screens as undervalued on broad valuation checks. The partnership trades at a price-to-earnings ratio of about 16.0 times, below the peer average of roughly 18.6 times and well under Simply Wall St's tailored fair ratio estimate of around 26.2 times. On five of six valuation measures, the stock appears priced below what its fundamentals might justify. Expansion projects tied to natural gas and NGL export capacity support expectations for sustained cash flows, though heavy capital spending could limit flexibility if conditions sour. The key question for investors is whether the apparent discount reflects excessive caution or a fair price for the execution, spending, and regulatory risks that come with large midstream projects.
Energy Transfer Announces Expansion of Nederland NGL Export Terminal
Energy Transfer announced an expansion of its Nederland NGL Export Terminal to meet additional customer demand. The project will expand ethane export capacity by 240,000 barrels per day and add 55,000 barrels per day of additional LPG capacity, with all of the ethane export capacity committed under long-term agreements extending into the 2040s. The company will also expand its Mont Belvieu to Nederland NGL export pipeline capacity and construct two additional NGL ship docks. The previously announced expansion of refrigerated propane and butane storage tanks to 1.2 million barrels and 0.8 million barrels, respectively, is expected to be available in the first half of 2027. Energy Transfer has exported more than 430 million barrels of ethane from Nederland since 2021.
Arizona Ridge Riders to Announce Multi-Year Partnership with Energy Transfer at Training Camp
The Arizona Ridge Riders will officially announce a multi-year partnership with Energy Transfer at their 2026 training camp this weekend in Buckeye, Arizona. Energy Transfer, one of the nation's largest energy infrastructure companies and the developer behind the planned Desert Southwest Pipeline project, becomes an Official Partner of the team and Presenting Sponsor of Ridge Rider Days. The partnership includes the Ridge Riders' first Youth Bull Riding Scholarship Program and the inaugural Youth Rider Clinic, the first of which will be held Saturday morning hosted by actor Mo Brings Plenty. Energy Transfer will also receive prominent branding on the back yoke of team jerseys throughout the PBR Teams season. The agreement further features a season-long social media content series and ambassador programming with Mo Brings Plenty.
The Motley Fool Highlights Three High-Yield Pipeline Stocks as Alternatives to Tech Frenzy
The Motley Fool suggests that investors nervous about the tech stock frenzy consider three steady, high-yield master limited partnership pipeline stocks: Energy Transfer, Enterprise Products Partners, and Western Midstream. Energy Transfer offers a 7.2% yield and trades at a forward enterprise value-to-EBITDA multiple of 8.3, with growth projects like the Hugh Brinson and Desert Southwest Pipelines expected to generate high-teens returns. Enterprise Products Partners has increased its distribution for 27 straight years, yields 6%, and trades at a forward EV/EBITDA multiple of 10.5, while maintaining low leverage of 3.2x and a strong balance sheet. Western Midstream yields 8.7%, trades at a forward EV/EBITDA multiple under 9, and is expanding its natural gas and crude gathering footprint in the Delaware Basin through the Brazos Delaware acquisition, with leverage of only 3x.
MarketBeat Highlights Three Dividend Stocks Under $30 With Yields Above 4%
MarketBeat identifies AT&T, Vale, and Energy Transfer as three dividend stocks trading under $30 per share that can anchor a portfolio with yields above 4%. AT&T offers a dividend yield near 5% while investing in an AI-ready network infrastructure to support future growth. Vale combines a low valuation with a yield above 4% and exposure to iron ore, copper, and nickel demand. Energy Transfer's massive pipeline expansion projects, including the $5.6 billion Desert Southwest Pipeline, support its 7% plus yield and distribution growth outlook of 3% to 5% annually.
Plains All American Pipeline Holds Edge Over Energy Transfer on Key Metrics
Plains All American Pipeline appears better positioned than Energy Transfer to deliver stronger returns, according to a Zacks Investment Research analysis. Plains All American Pipeline's return on equity stands at 12.17% versus Energy Transfer's 9.77%, and its debt-to-capital ratio is lower at 47.02% compared with 58.23% for Energy Transfer. Plains All American Pipeline's 2027 earnings estimates have risen 2.48% over the past 60 days, while Energy Transfer's 2027 estimates have fallen 4.4%. Plains All American Pipeline units have gained 20.7% in the past six months, outpacing Energy Transfer's 15.5% rally, and its cash distribution yield is 7.83% with five-year annualized distribution growth of 20.92%, slightly above Energy Transfer's 7.2% yield and 19% growth. Both stocks carry a Zacks Rank #3 (Hold).
Energy Transfer and Enterprise Products Partners highlighted as undervalued dividend stocks with growing payouts in 2026
Energy Transfer and Enterprise Products Partners are identified as two undervalued dividend stocks with growing payouts in 2026. Energy Transfer reported first-quarter 2026 adjusted EBITDA of $4.9 billion, up from $4.1 billion a year earlier, and raised its full-year adjusted EBITDA guidance to a range of $18.2 billion to $18.6 billion. The partnership offers a distribution yield of approximately 7.2% with a payout ratio below 50%. Enterprise Products Partners grew first-quarter adjusted EBITDA by 10% to $2.7 billion and maintained 1.8 times coverage of its distributions, extending its streak of 27 consecutive annual distribution increases. Enterprise yields approximately 6% with a payout ratio of 53%. Both midstream energy partnerships trade at attractive valuations relative to their cash flow growth, with Energy Transfer priced at 6.8 times forward distributable cash flow per share and Enterprise at 8.6 times.