Is Energy Transfer profitable in 2026?

Yes. Energy Transfer posted FY2025 net income of $5.71B (down from $6.57B in 2024), and Q1 2026 revenue hit $27.77B, up 32.1% YoY, though EPS of $0.35 missed the $0.40 consensus estimate, as of March 31, 2026.

Who owns Energy Transfer?

Energy Transfer LP (NYSE: ET) is publicly traded, with Executive Chairman Kelcy Warren holding a major stake within roughly 10% insider ownership as of September 2025. Institutional ownership sits at about 38.2%, lower than peer Kinder Morgan's 62.5% as of July 2026.

Could AI replace Energy Transfer?

No. Energy Transfer operates physical pipeline infrastructure across 140,000 miles in 44 states, a business AI software cannot substitute. AI is instead a demand driver: the company has signed over 6 Bcf/d of new gas supply contracts with AI data centers like Oracle and Meta in the past year, as of June 24, 2026.

Who is Energy Transfer's biggest competitor?

Enterprise Products Partners is the closest peer by scale, but trades at a much higher valuation, 17.6x EV/EBITDA versus Energy Transfer's 8.6x as of June 19, 2026. Kinder Morgan and Williams Companies also compete directly for new AI data-center gas supply contracts.

Why did New Mexico regulators reject Energy Transfer's pipeline?

New Mexico's Land Commissioner denied the 'Green Chile' pipeline segment, meant to feed Oracle's Project Jupiter data center, for the second time on July 14, 2026. Energy Transfer had a 30-day window to appeal as of the July 16, 2026 report.

What happened with Energy Transfer's Lake Charles LNG project?

Energy Transfer suspended the final investment decision on its Lake Charles LNG export terminal on December 18, 2025, after 12 years of development, and terminated related offtake agreements in February 2026 following the missed FID.

Manufacturing companies · United States

Energy Transfer

energytransfer.com ↗

Runs 140,000 miles of U.S. pipelines moving natural gas and NGLs coast to coast.

Hard to displace

Assessed 20 July 2026 · Evidence as of 20 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 20 July 2026 · Checkable from August 4, 2026 · Every call on the record Checkpoint: New Mexico Green Chile pipeline appeal ruling, plus Q2 2026 earnings

The call

Energy Transfer's pipes carry the gas that powers AI data centers, so AI growth adds demand rather than eating the business.

Energy Transfer owns and operates a massive network of pipelines that carry natural gas across the United States, collecting fees from customers who need that gas delivered. The network is hard to replace because it took decades to build, requires government permits to expand, and companies have signed contracts guaranteeing they will use these pipes for 18 to 20 years, so new competitors cannot easily come in. The company is growing because data centers that power artificial intelligence need lots of natural gas to run their electricity generators, and Energy Transfer has already signed deals with companies like Oracle and Meta to supply them. The main risk is that new pipeline projects still need government approval, and two planned projects (one in New Mexico and one in Arizona) have hit delays in the approval process, which could slow the growth story investors are betting on.

Why

AI pressure: None apparent. AI data centers need gas power now, so Oracle, Meta, and others are signing 18-20 year contracts with Energy Transfer, not replacing it. Could AI do the core job? Unlikely.

Bigger players: None apparent. No software or big-tech company can replicate a 140,000-mile permitted pipeline network; the physical asset itself blocks entry. Could a giant copy it? No, they are blocked.

What protects it. Decades-old FERC permits and rights-of-way across 44 states that new competitors legally cannot obtain or replicate.

What would change this call

Outcome of New Mexico 'Green Chile' segment appeal (30-day window from mid-July 2026 denial). Shows whether regulatory pushback can actually block Oracle-linked data-center pipeline growth.
FERC decision timeline on Desert Southwest Expansion (Docket PF26-9-000). Indicates whether new AI-data-center pipeline capacity gets built on schedule.
Q2 2026 earnings (August 4, 2026) guidance on 2026 growth capex of $5.5-5.9B. Confirms whether data-center-driven contracted growth is tracking as promised.

Key numbers

140,000 miles of pipeline across 44 states (2025-09-30)
Q1 2026 revenue $27.77B, up 32.1% YoY (2026-03-31)
FY2026 EBITDA guidance $18.2-18.6B (2026-05-04)

Named risks

New Mexico regulators have twice denied the Green Chile pipeline feeding Oracle's Project Jupiter as of July 14, 2026. Severity: high
Leverage of 139% debt-to-equity, higher than peers like EPD's 112%, as of June 19, 2026. Severity: medium
Greenpeace continues appeals against the $345M finalized judgment despite two blocked collateral attacks. Severity: medium
Lake Charles LNG FID suspension after 12 years of development and offtake terminations leaves major project stalled. Severity: medium
Desert Southwest Expansion still in FERC environmental review, timeline could slip. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Enterprise Products Partners	gaining on	EPD trades at 17.6x EV/EBITDA vs ET's 8.6x with lower 112% debt/equity, as of 2026-06-19
Kinder Morgan	contesting	KMI has 62.5% institutional ownership vs ET's 38.2%; both chasing AI data-center gas deals, 2026-07-13
Williams Companies	gaining on	WMB valued at 17.3x EV/EBITDA vs ET's 8.6x discount, as of 2026-06-19
ONEOK	contesting	OKE trades at 11.7x EV/EBITDA, also competing for midstream data-center gas supply, 2026-06-19

Questions people ask

Is Energy Transfer profitable in 2026?: Yes. Energy Transfer posted FY2025 net income of $5.71B (down from $6.57B in 2024), and Q1 2026 revenue hit $27.77B, up 32.1% YoY, though EPS of $0.35 missed the $0.40 consensus estimate, as of March 31, 2026.
Who owns Energy Transfer?: Energy Transfer LP (NYSE: ET) is publicly traded, with Executive Chairman Kelcy Warren holding a major stake within roughly 10% insider ownership as of September 2025. Institutional ownership sits at about 38.2%, lower than peer Kinder Morgan's 62.5% as of July 2026.
Could AI replace Energy Transfer?: No. Energy Transfer operates physical pipeline infrastructure across 140,000 miles in 44 states, a business AI software cannot substitute. AI is instead a demand driver: the company has signed over 6 Bcf/d of new gas supply contracts with AI data centers like Oracle and Meta in the past year, as of June 24, 2026.
Who is Energy Transfer's biggest competitor?: Enterprise Products Partners is the closest peer by scale, but trades at a much higher valuation, 17.6x EV/EBITDA versus Energy Transfer's 8.6x as of June 19, 2026. Kinder Morgan and Williams Companies also compete directly for new AI data-center gas supply contracts.
Why did New Mexico regulators reject Energy Transfer's pipeline?: New Mexico's Land Commissioner denied the 'Green Chile' pipeline segment, meant to feed Oracle's Project Jupiter data center, for the second time on July 14, 2026. Energy Transfer had a 30-day window to appeal as of the July 16, 2026 report.
What happened with Energy Transfer's Lake Charles LNG project?: Energy Transfer suspended the final investment decision on its Lake Charles LNG export terminal on December 18, 2025, after 12 years of development, and terminated related offtake agreements in February 2026 following the missed FID.

Timeline

2026-07-16New Mexico rejects Green Chile pipeline segment for Oracle project again; 30-day appeal window opens
2026-06-30Energy Transfer announces Q2 2026 earnings release for August 4, 2026
2026-06-03Amsterdam court rejects Greenpeace EU anti-SLAPP theory against Energy Transfer
2026-05-04Q1 2026 results show EBITDA ~$4.9B vs ~$4.1B YoY; FY2026 guidance raised to ~$18.2-18.6B
2026-05-01North Dakota Supreme Court blocks Greenpeace's parallel Dutch anti-SLAPP suit
2026-02-27Judge finalizes Greenpeace pipeline protest verdict at $345M
2026-02-20Energy Transfer terminates Lake Charles LNG offtake agreements after missed FID
2026-02-01Oracle Abilene campus gas deliveries begin, up to 900 MMcf/d across three data centers
2025-12-18Lake Charles LNG export FID suspended after 12 years of development
2025-01-01Crestwood Equity Partners acquisition (~$7.1B) completed

Revision history

20 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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