Energy Transfer LP announced that it will invest between $5.0 billion and $5.5 billion in growth capital during 2026, a figure that represents the core of its 2026 capital‑allocation strategy.
The company’s focus remains on expanding its natural‑gas pipeline and storage network, a strategy that aligns with the growing demand for reliable power at data‑center sites. Management highlighted that the projects targeted for this investment are expected to deliver mid‑teen‑percent returns, underscoring a disciplined approach to capital allocation and a confidence in sustained demand for its infrastructure.
In 2025, Energy Transfer revised its growth‑capital estimate downward to roughly $4.6 billion from an earlier $5.0 billion, a change driven by project forecast reductions and the deferral of some spending into 2026. The 2026 guidance therefore reflects a re‑prioritization of projects that offer higher returns and stronger contractual certainty.
The bulk of the 2026 capex is earmarked for natural‑gas pipeline and storage assets, with a particular emphasis on projects that will serve data‑center customers. This allocation reflects the company’s strategy to capture the high‑margin, long‑term contracts that data‑center operators seek for their power needs.
CEO John Smith emphasized that the company’s disciplined growth strategy and its target leverage of 4.0‑4.5 times EBITDA will allow it to fund these projects while maintaining financial flexibility. “We are investing in assets that generate strong, predictable cash flows and support our long‑term contract‑based revenue model,” he said.
The guidance signals that Energy Transfer remains confident in the long‑term demand for natural‑gas infrastructure, especially as the data‑center sector continues to expand. By shifting capital from the Lake Charles LNG project to pipeline and storage, the company is positioning itself to capture a growing market while preserving its balance‑sheet strength.
The announcement reinforces Energy Transfer’s commitment to delivering mid‑teen‑percent returns on its capital investments and to maintaining a conservative leverage profile, both of which are key to sustaining shareholder value over the long term.
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