Energy Transfer LP (TXSE: ET) is a “midstream” energy company. “Upstream” companies focus on exploring and producing oil and/or gas, while “downstream” companies focus on refining and selling it. Midstream businesses connect those companies — via moving, storing, and processing oil and/or gas.
Here’s its performance in recent years:
|
Period
|
Average Annual Total Gain
|
|
Past 3 years
|
18.79%
|
|
Past 5 years
|
20.05%
|
|
Past 10 years
|
6.46%
|
|
Past 15 years
|
9.39%
|
Source: Morningstar.com, as of Oct. 20, 2026. Total gain includes dividend reinvestment.
And here’s how those numbers would have increased a $1,000 investment:
- $1,000 would have grown to $1,676 over the past three years.
- $1,000 would have grown to $2,494 over the past five years.
- $1,000 would have grown to $1,870 over the past 10 years.
- $1,000 would have grown to $3,843 over the past 15 years.
Looking forward, not back
Investors should spend more time looking forward than back, though. So … is Energy Transfer a company worth investing in now? Let’s take a look.
It boasts about 140,000 miles of pipeline and related infrastructure, spanning 44 states and present in all of America’s major production basins.
It’s growing and plans to keep growing — in part via acquisitions. For example, it recently struck a deal to buy Vaquero Midstream for about $2.6 billion. Vaquero brings a 300-mile pipeline, several gas-processing trains, and, importantly, long-term, fee-based contracts — which can provide reliable cash flow for about the next decade.
An especially attractive thing about Energy Transfer is its dividend yield — recently a whopping 7%! It cut its payout back in 2020 to restructure itself a bit, but it’s been increasing it again — for nearly 20 quarters in a row.
Note, too, that Energy Transfer is a master limited partnership (MLP), so it gets treated a little differently come tax time. If you own it, you’ll need to file a K-1 tax form.
Give Energy Transfer some consideration for your long-term portfolio — after learning more about it, of course.
Should you buy stock in Energy Transfer right now?
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
