Energy Transfer: Lake Charles Shock, EBITDA Miss And A Bearish Rollover Into 2026 (Archive)
Energy Transfer’s growth stalls as Lake Charles is scrapped and bearish pressures build.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Energy Transfer is giving up on a high-ROI Lake Charles LNG expansion, removing a major growth catalyst and signaling a retreat from LNG export ambitions.
- ET’s flat EBITDA and a miss versus its FY25 adjusted EBITDA guidance despite the WTG Midstream acquisition and higher capex exposes weak organic growth.
- Rising NGL, midstream, and crude oil volumes yet declining distributable cash flow indicate worsening cash flow conversion.
- ET trades at a discounted EV/EBITDA multiple versus its history and midstream peers, creating valuation-driven upside risk despite deteriorating fundamentals.
- Long-term technical charts show a confirmed bearish rollover for ET versus the S&P 500, supporting expectations of continued underperformance into 2026.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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