$ET

Crude, NGL Firms See Firmer Q2 Outlook on Exports, Pricing Tailwinds, TPH Says

Midstream energy companies focusing on natural gas liquids and crude logistics are heading into Q2 on a constructive note, buoyed by robust volume growth, elevated commodity prices, and soaring exports, TPH Energy Research strategists said in a note on Wednesday.TPH Energy Research strategists said the observations were based on industry interactions at the Energy Infrastructure Council conference.AJ O'Donnell, analyst at TPH Energy, said a key driver for the optimistic outlook is the strengthening of liquefied petroleum gas and NGL export fundamentals.O'Donnell said midstream executives said rising engagement with global buyers, especially from Asia, who are increasingly prioritizing supply diversity and security.The soaring demand comes as the market grapples with the impact of prolonged shipping disruptions in the Strait of Hormuz, a critical global energy chokepoint. The urgent demand for alternative supply routes has shifted the industry's focus toward infrastructure expansions.TPH said while several new export dock projects are already scheduled to come online over the next few years, executives are focused on the "next wave" of capacity expansions and additional brownfield opportunities.Targa Resources (TRGP) is seeing significant optionality at its Galena Park asset, with potential expansions expected to deliver improving economics as fixed costs are spread across a larger throughput base.The energy firm noted that incremental expansions at the site would yield progressively stronger economics as fixed operational costs are distributed across a larger volume base.Optimism also extended into the crude logistics sector, where Plains All American Pipeline (PAA) is re-evaluating its strategic footprint.Following its recent divestiture of certain NGL assets, the energy firm's management is focusing heavily on organic growth opportunities across its extensive pipeline network connecting the Permian Basin to the US Gulf Coast.Meanwhile, US midstream infrastructure firms are witnessing a robust pipeline of natural gas and power-related projects alongside strengthening demand trends across North America.Kinder Morgan (KMI) is advancing its Gulf Coast Express expansion project, which is expected to come online this quarter, while also progressing its Tennessee Gas Pipeline expansion, originally sized at about 500 million cubic feet per day.Trident Energy also continues to scale its development portfolio, targeting 1.5 billion cubic feet per day of capacity in 2027 and a further 0.5 Bcf/d in 2028, with major contract awards expected to begin in late 2027.DT Midstream (DTM) reported rising Northeast US demand, with its management pointing to about 7.5 Bcf/d of largely utility-scale demand, and noting potential upside from emerging modular power requirements.TPH Energy strategists said the energy firm also highlighted the flexibility of its Midwest Incremental Supply Transportation project, which can source gas from both the Northeast and western supply basins via interconnected pipeline networks.Energy Transfer (ET) said it continues to see strong demand across its system, particularly in the Permian Basin and around Abilene, Texas, where it is positioning itself as a key provider of redundancy and integrated gas services.The company also noted uncertainty around uncontracted "behind-the-pipe" gas volumes, though such volumes remain contractually protected in the near term.On the gas distribution side, Kodiak Gas Services (KGS) plans to grow its base business by 3% to 4% while expanding its power build-out ambitions, citing a 2-gigawatt development pipeline, supported by equipment-sourcing capacity and continued inbound interest in additional megawatt-scale projects.Meanwhile, Cheniere Energy (LNG) continues to advance its Corpus Christi and Sabine Pass liquefaction expansions, Van Everen said, with sufficient commercial agreements in place to support much of the two-train development.Once completed, the projects are expected to add about 6 million metric tons per annum of LNG capacity, with the firm targeting long-term contracted levels near historical averages of about 90%.Elsewhere, Excelerate Energy (EE) pointed to project opportunities in Jamaica, Vietnam and India, as the company looks to deploy floating LNG infrastructure to support emerging gas import markets.Price: $33.66, Change: $-0.65, Percent Change: -1.89%

UBS Adjusts Price Target on Energy Transfer to $24 From $22, Maintains Buy Rating

Energy Transfer (ET) has an average rating of buy and mean price target of $23.12, according to analysts polled by FactSet.Price: $19.78, Change: $+0.17, Percent Change: +0.87%

Research Alert: CFRA Cuts View On Lp Units Of Energy Transfer To Hold From Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our downgrade is on valuation, with shares up 18% YTD, and now trading relatively close to our target. Our 12-month target price remains $21, a 7.9x multiple of enterprise value to projected 2027 EBITDA, in line with ET's historical forward average. We cut our 2026 earnings per unit estimate by $0.07 to $1.59, and 2027's by $0.11 to $1.64. ET has growing exposure to natural gas processing and logistics needs in the U.S., which is compounded by the emergence of data centers and LNG export terminals (which arguably rise in importance following recent attacks on Qatar's LNG export terminals, an important industry development given that Qatar is home to 20% of global LNG exports). Although ET is no longer proceeding with its own Lake Charles LNG terminal project, it still has exposure to the play by virtue of enabling the flow of natural gas to the U.S. Gulf for other industry participants. Units yield 6.8%.

Research Alert: Et: A Slight Q1 Miss, But Raised Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ET posted Q1 earnings per unit of $0.35 vs. $0.37 consensus, missing by $0.02 primarily due to higher interest expenses rather than operational weakness. Despite the earnings miss, adjusted EBITDA rose 20% to $4.94B and distributable cash flow increased 17% to $2.70B, led by robust volume growth across segments. The partnership achieved multiple volume records including NGL terminal volumes (+19%), NGL exports (+19%), and crude oil transportation (+8%), with the NGL segment generating $1.16B EBITDA (+19%). Management raised 2026 adjusted EBITDA guidance to $18.2B-$18.6B from $17.45B-$17.85B, representing a $550M increase at the midpoint. Growth capital expenditures are expected to reach $5.5B-$5.9B, with emerging demand drivers from data centers and power generation supporting future growth, including the approved $600M Springerville Lateral Project and agreements to serve new power plant loads delivering ~300 MMcf/d of gas supply.

Earnings Flash (ET) Energy Transfer Posts Q1 Revenue $27.77B, vs. FactSet Est of $25.58B

Ares Acquires Stake in Rover Pipeline From Blackstone Energy Transition Partners

Ares Management (ARES) said Wednesday funds led by its Infrastructure Opportunities strategy have acquired a 32.4% stake in the Rover Pipeline from funds managed by Blackstone Energy Transition Partners.Rover, operated by Energy Transfer (ET), is a natural gas transmission pipeline that provides critical connectivity from the Appalachian Basin to end markets across North America, it said.Price: $109.94, Change: $-3.08, Percent Change: -2.72%

Kinder Morgan Q1 Earnings Beat Estimates, Lifts 2026 Outlook, RBC Says

Kinder Morgan's (KMI) Q1 earnings exceeded expectations, supported by stronger volumes, winter weather tailwinds and firmer commodity prices, RBC Capital Markets strategists said in a note on Friday.RBC analysts said it now expects 2026 adjusted EBITDA to come in at least 3% above its prior budget, reflecting stronger operating conditions across its network.However, despite the upbeat results, Kinder Morgan shares edged lower following the release, which analysts attributed to limited backlog growth, uncertainty surrounding its Western Gateway project and investor positioning ahead of other earnings in the sector.The broader midstream space has continued to outperform this year. The Alerian MLP Index rose 1.6% in the week ended April 23, outpacing the S&P 500, which gained 1%. Year-to-date, the midstream benchmark is up 14.5%, compared with a 3.8% rise in the S&P 500.RBC said that strength in the sector has been supported by steady cash flows and growing demand for natural gas infrastructure, even as commodity prices remain volatile.Front-month West Texas Intermediate crude rose about 2% on the week to about $97 per barrel, while Henry Hub natural gas prices slipped about 2% to $2.59 per million British thermal units.Cheniere Energy (LNG), in contrast, declined 2.1%, in what RBC analysts said could reflect positioning ahead of earnings and a rotation into other midstream names.Master limited partnerships modestly outperformed C-corporations during the week, with MLPs up 1.2% versus a 1% gain for corporates.Going forward, investors are focused on upcoming earnings from Enterprise Products Partners (EPD) and Oneok (OKE), both scheduled to report on April 28.Market participants will be watching for commentary on the impact of higher commodity prices, producer activity, project ramp-ups, export demand and capital allocation plans, as well as the effects of winter weather and evolving price spreads across key basins.RBC analysts flagged potential read-throughs for other operators, including Williams Companies (WMB), Energy Transfer (ET), Targa Resources (TRGP) and Sunoco (SUN), citing expected tailwinds from seasonal demand, marketing optimization and commodity price volatility.