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Energy Transfer LP upgraded to Buy on strong pipeline growth and long-term demand contracts

Company Fundamentals
03 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Energy Transfer LP has been upgraded to a Buy rating due to robust growth prospects highlighted in its FQ1 2026 earnings report. The company’s contracted pipeline capacity exceeds 6 billion cubic feet per day with an 18-year weighted average life, supported by long-term demand-pull agreements and a positive outlook for electricity demand. Significant projects like the $5.6 billion Desert Southwest pipeline are expected to increase capacity by over 50%, capturing incremental demand in key hub areas. Although valuation multiples are currently above historical averages, these growth drivers could lead to a revaluation of the price-to-earnings multiple, signaling potential upside for investors.

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