Energy Transfer is leaning into the next phase of U.S. natural gas growth, outlining plans to invest $5–$5.5 billion in growth capital in 2026 as demand accelerates across power generation, data centers, and LNG-linked infrastructure. With multiple Permian, Gulf Coast, and Texas pipeline projects ramping up, the partnership is positioning its nationwide network to deliver steady earnings growth while supporting its 3%–5% long-term distribution growth target.
Key takeaways from Energy Transfer’s 2026 outlook:
Capital investment
- $5.0–$5.5 billion of growth capital planned for 2026
- Spending is primarily focused on natural gas network enhancements, reflecting rising demand from power generation and data centers in Texas
Earnings outlook
- Consolidated adjusted EBITDA: $17.3–$17.7 billion (includes Sunoco LP and USA Compression Partners)
- Management expects continued growth as multiple projects ramp up or enter service in 2026
Major projects ramping up or coming online in 2026
- Nederland Flexport NGL expansion – boosting export flexibility on the Gulf Coast
- Mustang Draw I & II processing plants in the Permian Basin
- Hugh Brinson Pipeline – Phase I
- NGL expansions on the Lone Star Express and Gateway pipelines
- New natural gas pipelines serving data center facilities in Texas, tying midstream growth directly to AI- and cloud-driven power demand
Distributions
- Reaffirmed long-term annual distribution growth target of 3%–5%
- Distributions supported by:
- A growing asset base
- Exceptional product and geographic diversity
- Balanced earnings across natural gas, NGL, and crude oil systems nationwide
Why this matters
Energy Transfer’s 2026 plan reinforces a clear industry theme: natural gas infrastructure is becoming critical power infrastructure. By aligning Permian processing, Gulf Coast NGL exports, and Texas data-center pipelines, ET is positioning itself at the intersection of upstream growth, LNG/NGL markets, and AI-driven electricity demand—while still maintaining a disciplined, distribution-focused capital strategy.
