Energy Transfer yields 6.4% and plans 3%-5% annual distribution growth; Enterprise Products Partners yields 5.8% and has raised its payout for 28 straight years. The company forecasts double-digit EBITDA and distributable cash-flow growth in 2027 as projects ramp up.
Energy Transfer plans to spend up to $5.9 billion on 2026 growth projects, including the Hugh Brinson and Desert Southwest pipelines; the first phase of Hugh Brinson is already in service. The company forecasts 5–6x EBITDA build multiples—$165 million to $200 million in annual incremental EBITDA for each $1 billion invested—and says the projects are backed by long-term commitments. About 90% of its business is fee-based, and payout coverage was 2.2x last quarter. The article describes Energy Transfer as a direct beneficiary of AI data-center power demand because it transports natural gas.
Enterprise's 2026 is a transition year following the roll-off of some high-return contracts and narrowing of some favorable spreads. It plans to spend up to $4 billion on growth projects in 2026 and has $6.5 billion of projects under construction; payout coverage was 1.9x last quarter. The article attributes its indirect AI benefit to more gas production for power plants, which also raises associated natural-gas-liquids volumes; petrochemical and liquefied petroleum gas exports are another growth driver.
