Barclays reduced its price target for Energy Transfer LP (NYSE:ET) to $22 from $25 on January 12, while keeping an Overweight rating on the shares. The bank stated the partnership continues to show commercial discipline and ingenuity, supporting a constructive forward outlook, despite concerns about upcoming re-contracting events across key assets.
This rating update came after Energy Transfer announced its outlook for capital investment and earnings estimates for full-year 2026 on January 6. The company aims to invest between $5.0 billion and $5.5 billion in growth capital, with a primary focus on projects that boost its natural gas network.
For 2026, Energy Transfer expects continued growth, targeting a consolidated Adjusted EBITDA in the range of $17.3 billion to $17.7 billion, which includes contributions from SUN and USAC.
The company further stated it anticipates key new projects will either ramp up or come on-line in 2026. These projects include the Mustang Draw I and Mustang Draw II processing plants in the Permian Basin, the Nederland Flexport NGL expansion, NGL projects on the Lone Star Express and Gateway Pipelines, Hugh Brinson Pipeline Phase I, and natural gas pipeline projects serving data center facilities in Texas.
Energy Transfer LP offers natural gas pipeline transmission and transportation services. The company operates through segments including Intrastate Transportation and Storage, Interstate Transportation and Storage, Midstream, NGL and Refined Products Transportation and Services, Crude Oil Transportation and Services, Investment in Sunoco LP, Investment in USAC, and All Other.