Energy Transfer Expands Long Term Pipeline Deals And Processing Capacity

Simply Wall St

Wed, February 18, 2026 at 3:09 PM GMT+9 4 min read

In this article:

ET

-0.75%

ET-PI

+0.68%

NG=F

-0.43%

CL=F

+0.05%

Make better investment decisions with Simply Wall St’s easy, visual tools that give you a competitive edge.

Energy Transfer (NYSE:ET) announces new long-term and expansion projects alongside record operational volumes in NGL, LPG, and crude transportation.

The company signs a 20 year natural gas transportation agreement with Entergy Louisiana.

ET advances the Transwestern Pipeline Desert Southwest expansion and begins construction on the Mustang Draw II processing plant.

Energy Transfer, a large U.S. midstream operator focused on pipelines, storage, and processing, is adding new projects on top of its existing footprint. The 20 year Entergy Louisiana agreement, the Transwestern Desert Southwest expansion, and the Mustang Draw II processing plant illustrate the company actively building out additional natural gas and liquids infrastructure. For readers following midstream companies, these are specific project announcements rather than accounting or estimate driven headlines.

For investors, a key consideration is how these long term contracts and projects might influence cash flow stability, capital requirements, and project execution risk over time. As more details become available on costs, timelines, and expected throughput, it may be easier to assess how these developments align with individual risk tolerance and income objectives for a position in NYSE:ET or the broader midstream space.

Stay updated on the most important news stories for Energy Transfer by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Energy Transfer.

NYSE:ET Earnings & Revenue Growth as at Feb 2026

📰 Beyond the headline: 2 risks and 2 things going right for Energy Transfer that every investor should see.

These new long term pipeline deals and the Mustang Draw II processing project sit alongside record NGL, LPG, and crude volumes, so you are seeing Energy Transfer commit more capital into areas where its system is already busy. The 20 year Entergy Louisiana contract, expanded Desert Southwest pipeline, and Midland Basin processing capacity look aimed at locking in fee based volumes tied to power demand and data centers rather than taking pure commodity exposure. For a midstream partnership, that kind of contract visibility can matter as much as quarterly EPS, especially when recent earnings reports show revenue of US$25.32b in the quarter with EPS of US$0.25 falling short of some expectations.

How This Fits Into The Energy Transfer Narrative

The long duration Entergy Louisiana agreement and upsized Desert Southwest project line up with the narrative focus on customer commitments and gas demand from power and data centers supporting more fee based cash flows.

The larger, more capital intensive Desert Southwest build and new plant add to the list of big projects that could face cost, permitting, or utilization risks that the narrative already flags as a concern.

The news around Mustang Draw II and data center deliveries to Oracle in Texas adds more color on specific end markets that are only briefly referenced in the existing narrative.

 






Story continues  

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Energy Transfer to help decide what it’s worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Analysts have highlighted that interest payments are not well covered by earnings, so layering in more capital projects could matter for future financing costs if cash flow growth does not keep pace.

⚠️ A distribution yield around the high single digits that is not fully covered by earnings or free cash flow can become harder to sustain if large projects like Desert Southwest or Mustang Draw II face delays or weaker volumes than planned.

🎁 Record NGL and crude transportation volumes, plus a growing slate of long term contracts, support the view that Energy Transfer’s fee based model can benefit from higher throughput even when quarterly EPS is mixed.

🎁 Some analysts see earnings growth potential and have flagged Energy Transfer as trading below certain fair value estimates, which may appeal to investors comfortable with midstream risk and distribution focused returns compared to peers like Enterprise Products Partners, Kinder Morgan, or Williams Companies.

What To Watch Going Forward

From here, it is worth keeping an eye on three things. First, how quickly the Mustang Draw II plant and Desert Southwest expansion move through construction and what updated cost estimates look like. Second, any further long term contracts with power utilities or data center operators that deepen the fee based backlog, including clarity on the recently mentioned Oracle data center deliveries. Third, how distribution coverage and leverage trends evolve as growth capital spending in 2026 approaches US$5b to US$5.5b.

To ensure you are always in the loop on how the latest news impacts the investment narrative for Energy Transfer, head to the community page for Energy Transfer to never miss an update on the top community narratives.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include ET.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info