Energy Transfer (ET +0.19%) will report its fourth-quarter earnings results on Feb. 17, which may spark some investors to wonder whether they should buy the stock before the report. However, investors shouldn't expect too many surprises when the master limited partnership's (MLP) report is released, or for a big stock price reaction.
In fact, over the past three years, Energy Transfer's stock has not moved by 5% or more in either direction in the trading session immediately following its earnings report. The biggest move was a 4.3% gain that followed its first-quarter 2025 results announcement this past May. Even then, there wasn't any major catalyst that moved the stock, as it turned in modest adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth and reiterated its full-year guidance.
The move was probably more of a sigh of relief that tariffs were not having a big impact on its business or the economics of its planned growth projects.
NYSE: ET
Key Data Points
Looking toward its upcoming Q4 report, there should be even less drama. The company already issued its 2026 guidance in early January, projecting adjusted EBITDA of $17.3 billion to $17.7 billion. That should equate to growth of between 9% to 10%. Meanwhile, it also already warned investors that its 2025 adjusted EBITDA would be slightly below its $16.1 billion to $16.5 billion forecast range. With a 90% fee-based business, there shouldn't be much movement with these numbers.
At the same time, Energy Transfer also announced its growth capital expenditure (capex) budget for this year. It plans to spend between $5 billion and $5.5 billion on growth projects in 2026, which is up from the $4.6 it budgeted for 2025. It is targeting EBITDA build rates below 6 times for its projects, which would yield mid-teen returns. Based on that build rate, Energy Transfer's growth projects should add approximately $900 million in incremental EBITDA once the projects are fully ramped up.
Image source: Getty Images.
Should investors buy the stock before earnings?
At this time, investors shouldn't worry too much about buying Energy Transfer ahead of earnings, as it likely isn't a big needle mover. However, this is a top high-yield dividend stock to own in the midstream energy space.
It sports a robust, well-covered forward yield (1.7 times coverage ratio in Q3) of 7.4%, and its balance sheet is in solid shape. Meanwhile, it has some of the best growth project opportunities in the midstream space, given its natural gas assets in the Permian. This gives it access to cheap natural gas, which is helping drive its growth projects tied to AI data centers.
Meanwhile, Energy Transfer has one of the most attractive valuations in the space, trading at an enterprise value-to-EBITDA multiple of 7.7 based on the midpoint of its 2026 guidance. That makes the stock a buy for the long term.
