Since reporting its second-quarter 2026 financial results on Aug. 4, Energy Transfer (NYSE: ET) has seen its shares climb more than 2%, trading near its 52-week high of $21.11. Before the announcement, Energy Transfer units were trading around $20.20 to $20.28. The question is whether the price rise in the energy stock can continue.
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For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Energy Transfer is a diverse midstream energy company and is uniquely positioned to capture massive, long-term demand for natural gas infrastructure driven by artificial intelligence (AI) data center build-outs, power grid expansions, and Gulf Coast natural gas liquids (NGL) export facilities. In the second quarter, management for the master limited partnership highlighted expanded takeaway capacity in key basins, including the Permian, ensuring high utilization across its expansive pipeline network.
The company reported that its 442-mile Hugh Brinson Pipeline has come online earlier than expected, though full capacity isn't expected until March 2027. The Brinson pipeline moves natural gas from processing facilities in West Texas to existing pipelines south of the Dallas-Fort Worth metroplex, allowing customers the ability to reach several destinations in Texas and Louisiana. As it was, in the second quarter, NGL exports were up 25% year over year, a company record.
The company also completed upgrades to its Lone Star Express NGL pipeline and pressed into service its third and fourth 10-megawatt natural-gas-fired electricity generation plants. The company's power generation business serves 15 states with approximately 185 plants connected directly or indirectly via its extensive natural gas pipeline network. The company has long-term power agreements that directly or indirectly help hyperscalers such as Oracle, Cloudburst Technologies, and Meta Platforms.
Energy Transfer reported distributable cash flow of $2.59 billion in the second quarter, up 32% year over year. That rise is what's behind the company's $500 million guidance hike to full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), now in the range of $18.8 billion to $19.1 billion, reflecting strong fee-based cash flows that insulate the business from short-term commodity price swings. This expanding cash generation directly supports further leverage reduction and continued quarterly distribution growth for unitholders.
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