ET is the contrarian income buy while the market chases energy's bigger winners. The units have risen 27.1% this year, but that still trails the energy sector's 38.3%, leaving a cash-generating midstream operator behind the sector's headline leaders. More important, director Kelcy Warren just bought $13.8 million of units at $21.26, part of $21.51 million in recent insider purchases and zero reported insider sales. That purchase would be notable on its own; paired with surging distributable cash flow and a higher 2026 outlook, it makes ET's 6.4% yield look like an income engine with room to keep growing.
The growth pipeline also looks more durable than ET's nearly flat trailing revenue growth might suggest. The Hugh Brinson Pipeline is in commercial service and is expected to reach 1.5 Bcf/d of Phase I capacity by September 1, while new customer demand tied to Texas power plants and data centers has reached 100 MMcf/d. ET has also signed long-term transportation and fractionation agreements covering about 300,000 barrels per day on y-grade assets extending into the 2030s. That contracted expansion helps explain why the TickerSpark Score's Valuation sub-score is 93 even as the Growth sub-score is only 40. ET trades at a 13.09 P/E and a 0.57 PEG, pricing the partnership far more like a mature income vehicle than a platform with multiple demand-linked projects still moving forward.
The insider buy also may be confidence signaling rather than a precise near-term valuation call. Warren has been a recurring buyer historically, and the stock is already close to its 52-week high of $21.64. Consensus is a Buy, with 29 buy ratings, four holds, and no sell ratings, so ET is not an ignored special situation. The recent rally may have absorbed part of the earnings beat and guidance increase. Even so, the bullish case does not require Warren to time the next few weeks. It requires the partnership to keep converting contracted infrastructure demand into distributable cash flow, and the latest quarter delivered exactly that evidence.
The next proof points are concrete. ET expects Hugh Brinson to reach 1.5 Bcf/d of Phase I capacity on September 1, additional natural-gas pipeline projects are expected later in 2026, and the next earnings report will show whether the $18.8 billion-$19.1 billion adjusted EBITDA guide is tracking. A clean project ramp and another distribution increase would reinforce the cash-flow vote Warren just cast. A missed ramp, a lower outlook, or a break in the distribution-growth streak would change our mind; until then, the $21 million insider commitment is more than a headline—it is a credible reason to stay bullish on ET.
Our take, not advice. This is opinion commentary — informational only, not personalized investment recommendations. Markets carry risk. Do your own research and consider your own situation before any trade.
