Energy Transfer's Strategic Shift Delivers Record Revenue and Earnings

Energy Transfer ET has seen its fortunes change dramatically over the past year. The diversified midstream energy partnership's decision to shift strategy appears to be paying off, with distributable cash flow soaring and earnings jumping.

The company announced in December 2025 that it would no longer pursue a major liquefied natural gas (LNG) export terminal in Louisiana, instead redirecting capital towards its pipeline backlog. The move has clearly paid off, with revenue rising to $34.3 billion compared to $19.2 billion the previous year.

Net income nearly doubled to $2.03 billion from $1.09 billion, while EBITDA came in at roughly $5.07 billion, up sharply from $3.87 billion. Management has raised full-year adjusted EBITDA guidance to a range of $18.8 billion to $19.1 billion.

The company's cash flow is also fueling a growing payout for unitholders, with distributable cash flow attributable to partners rising to approximately $2.6 billion from $1.96 billion. The partnership has raised its quarterly cash distribution for the 19th consecutive time, to 34 cents, resulting in a yield of roughly 6.6%.