Energy Transfer LP (ET) Stock Analysis

Energy Transfer’s primary competitive advantage is its scale and integration across the U.S. midstream value chain. The company operates approximately 140,000 miles of pipeline—one of the largest networks in North America—spanning natural gas, natural gas liquids (NGLs), crude oil, and refined products. This footprint enables ET to move roughly 30% of U.S. natural gas production, providing unmatched optionality and connectivity for customers, especially in the Permian Basin and Texas, where demand from power plants and data centers is rising.

ET’s asset base is highly diversified by geography and commodity, reducing exposure to regional or product-specific downturns. Its fee-based revenue model (over 90% of 2025E EBITDA is fee-based) insulates cash flows from commodity price swings, a key differentiator versus smaller, more commodity-exposed peers.

Relative to rivals such as Kinder Morgan and Enterprise Products Partners, ET’s integration—owning gathering, processing, storage, and export assets—enables cost efficiencies and cross-segment synergies. For example, ET’s NGL export capacity exceeds 1.4 million barrels per day, giving it a roughly 20% share of global NGL exports.

Customer stickiness is reinforced by long-term contracts and the logistical complexity of switching providers. The company’s scale also supports lower per-unit operating costs and bargaining power with suppliers.

However, ET’s high leverage and complex structure are notable weaknesses compared to more conservatively financed peers. Nonetheless, its asset depth, network effects, and cost advantages provide a durable moat in U.S. energy infrastructure.