Energy Transfer to Report Q2 Earnings: What's in Store for the Stock?

Energy Transfer LP ET is expected to report an improvement in its revenues and a decline in earnings per share when it reports second-quarter 2025 results on Aug. 6, after market close.
 
The Zacks Consensus Estimate for ET’s second-quarter revenues is pegged at $25.26 billion, indicating a 21.87% increase from the year-ago reported figure.

The consensus estimate for earnings is pegged at 32 cents per unit. The Zacks Consensus Estimate for ET’s second-quarter earnings indicates an 8.57% decline from the year-ago reported figure.

ET’s Surprise History

Energy Transfer missed the Zacks Consensus Estimate for earnings in two of the trailing four quarters while surpassing in the other two quarters, resulting in an average negative surprise of 3.28%.

What the Zacks Model Unveils

Our model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

ET’s Earnings ESP: Energy Transfer has an Earnings ESP of -2.11%.

Zacks Rank: Energy Transfer currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider This Season

Here are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.

ARRAY Technologies, Inc. ARRY is expected to beat second-quarter earnings estimates when it reports results on Aug. 7, 2025.  The company currently has an Earnings ESP of +76.87% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) earnings growth of the company is pegged at 21.63%. The Zacks Consensus Estimate of ARRY’s 2025 and 2026 earnings per share indicates year-over-year growth of 10% and 35.35% respectively.

Plains GP Holdings PAGP is expected to beat second-quarter earnings estimates when it reports results on Aug. 8, 2025.  The firm currently has an Earnings ESP of +50.00% and sports a Zacks Rank #1.

The Zacks Consensus Estimate of PAGP’s 2025 and 2026 earnings per unit indicates year-over-year growth of 205.77% and 23.79% respectively.

HighPeak Energy, Inc. HPK is expected to beat second-quarter earnings estimates when it reports results on Aug. 11, 2025. The company currently has an Earnings ESP of +58.33% and a Zacks Rank #2.

The Zacks Consensus Estimate of HPK’s 2025 and 2026 earnings per share indicates year-over-year growth of 2.99% and 3.62%, respectively.

Factors Likely to Have Shaped ET’s Q2 Earnings

Fee-based contracts are estimated to have contributed nearly 90% of Energy Transfer’s earnings, a trend that is expected to continue in the upcoming quarterly results. These predominantly fee-based arrangements provide the company with a stable and predictable revenue stream, which likely supported its performance in the second quarter.

Energy Transfer continues to expand its clean power generation portfolio as planned, having brought the first of eight planned 10-megawatt natural gas-fired power plants online. This development is anticipated to have positively impacted earnings.

The company is also leveraging its extensive pipeline infrastructure across key production basins, benefiting from rising hydrocarbon output. Following increased volumes of natural gas, crude oil, and NGLs transported through its pipelines in the first quarter, a similar trend likely persisted into the second quarter.

Energy Transfer’s earnings are expected to have been bolstered by strong natural gas liquids (“NGL”) export volumes. Energy Transfer’s export terminals offer unmatched flexibility and ship-loading capabilities, allowing the company to export NGLs to over 55 countries. With an export capacity of approximately 1.1 million barrels per day, this segment likely made a significant contribution to the firm’s second-quarter performance.

ET Stock Trading at a Discount

Energy Transfer units are somewhat inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 10.22X compared with the industry average of 11.46X.

ET Stock’s Price Performance

ET’s units have gained 14.3% in the past year compared with the Zacks Oil and Gas Production Pipeline – MLB industry’s rally of 10.9%.

Investment Thesis

Energy Transfer operates an extensive network of nearly 140,000 miles of pipelines and related infrastructure spanning 44 states, strategically positioning the company to capitalize on increasing U.S. production of oil, natural gas, and natural gas liquids.

Ongoing investments to expand its pipeline and processing capacity are expected to further solidify Energy Transfer’s leading position in the midstream sector. Its strong LNG export capabilities, combined with rising domestic demand, are likely to drive continued performance growth.

However, the company depends on a number of key producers for its natural gas supply. The loss of any of these producers could adversely impact financial results unless comparable supply sources are promptly secured.

Wrapping Up

Energy Transfer continues to benefit from rising demand by effectively leveraging its extensive asset base across the United States. Strategic acquisitions have complemented its organic growth initiatives, further strengthening the company’s overall performance.

The long-term outlook remains positive, supported by its broad geographic footprint and ongoing efforts to grow operations through both organic expansion and strategic acquisitions.

Those who already own this Zacks Rank #3 stock would do well to retain it in their portfolio.

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This article originally published on Zacks Investment Research (zacks.com).

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