With a Nearly 7% Yield, Is Energy Transfer Stock a Buy as It Looks to Turbocharge Growth?

Energy Transfer (ET) posted third-quarter adjusted EBITDA of $5.03 billion, up 31% year-over-year, as energy market volatility and record volumes across its segments drove results.

The company plans to lift growth capital expenditures to $7 billion in 2027. Named projects include the Hugh Brinson Pipeline and the Desert Southwest pipeline, which anchor the expansion push.

On valuation, ET trades at a forward EV/EBITDA multiple of 8.2x and offers a 6.8% dividend yield. The source describes distributions as well covered, meaning cash flow comfortably supports the payout.

Interpretation: a 31% EBITDA jump paired with a near-7% yield is an unusual combination for midstream. The yield suggests the market is not fully pricing in the earnings acceleration, though the $7 billion capex step-up means near-term cash will be redirected toward growth rather than returned. The investment case rests on those pipeline projects converting spending into future volumes.

Peers EPD and KMI compete for the same income-focused midstream capital, so ET's yield and multiple will be judged against theirs.