Energy Transfer in 2025: The Sleeper Hit of Your Portfolio?

Energy Transfer LP (ET) is quietly outrunning the market—while everyone's distracted by AI and crypto hype. Here's why midstream energy could be your dark horse for Q3/Q4 2025.

The Pipeline Play Wall Street Ignores

Crude prices are volatile, but ET's fee-based model bypasses the drama. Their infrastructure monopoly prints cash whether oil trades at $60 or $160.

Distribution Yield That Shames Tech Stocks

That 8%+ yield isn't a meme—it's cold hard cash flowing through 11,500 miles of pipelines. Reinvest those dividends while growth stocks flatline.

2025's Dirty Secret: Energy Still Moves Everything

Renewables get headlines, but fossil fuels still move 80% of global energy. ET's assets aren't going obsolete—they're getting more valuable as production shifts to the Permian.

Bottom line? While your finfluencer friends chase the next Shiba Inu, smart money's stacking pipeline profits. Just don't expect TikTok fame for owning boring brilliance.

Image source: Getty Images.

Second-half catalysts abound for Energy Transfer

This year will be a more transitional period for Energy Transfer. The midstream giant delivered 13% growth in its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) last year, fueled by the acquisition of Crestwood Equity Partners in late 2023 and WTG Midstream last year. The company expects its earnings growth rate to slow to about 5% this year due to fewer growth catalysts.

However, the MLP's growth engine should start ramping back up in the second half of this year and into 2026. It's investing $5 billion in growth capital projects this year. Those projects will begin entering service in the second half of this year (including its Nederland Flexport NGL Expansion and Badger gas processing plant) and continue through the end of next year. As a result, its growth rate should accelerate, potentially giving its stock a boost.

Energy Transfer could approve more expansion projects in the second half of the year, including the Lake Charles LNG terminal and new projects supplying gas to artificial intelligence (AI) data centers. These approvals could provide further upside for the company's price.

Energy Transfer is also currently in its strongest financial position ever. This financial flexibility could allow it to make a major acquisition that WOULD accelerate growth and help reignite its unit price.

On top of these potential upside catalysts, Energy Transfer currently offers investors an attractive income stream (more than 7% distribution yield). That payout will provide investors with a nice base return in the second half.

Add it all up, and the catalysts are there for Energy Transfer to be an excellent investment in the second half of 2025.