Energy Transfer LP (ET) ended Friday's session at $20.07, edging up 0.3% on the day but slipping roughly 0.4% for the week. The stock remains just shy of its recent peak of $20.70 reached Wednesday, as the market digests a pivotal regulatory decision for the Dakota Access Pipeline.
The U.S. Army Corps of Engineers has allowed the Dakota Access Pipeline to continue operations under stricter environmental and safety conditions following a lengthy review. The pipeline, which transports up to 750,000 barrels per day from North Dakota to Illinois, must now implement enhanced leak detection, additional water testing, emergency water-supply planning, and independent safety audits. No new pipeline segments at the Lake Oahe crossing were permitted.
Energy Transfer welcomed the decision, with Vice President of Corporate Communications Vicki Granado stating the pipeline has operated safely for nearly a decade and remains a critical component of U.S. energy infrastructure. However, the Standing Rock Sioux Tribe signaled it would evaluate all legal and political options, suggesting further litigation is likely.
The broader market saw gains, with the S&P 500 rising 0.9% for the week and the Dow Jones Industrial Average climbing 2.1% to close at 50,579.70. Midstream peers outperformed Energy Transfer on Friday: Kinder Morgan closed at $33.79, Williams Companies at $78.47, and ONEOK at $94.03.
Energy Transfer's distribution yield remains a key attraction. The company paid its first-quarter distribution of $0.3375 per common unit on May 20, equating to an annualized $1.35 and a yield near 6.7% at Friday's close. Earlier this month, the company reported a 20% jump in adjusted EBITDA to $4.94 billion for the first quarter and raised its 2026 adjusted EBITDA guidance to a range of $18.2 billion to $18.6 billion. Growth capital expenditure guidance was also increased to between $5.5 billion and $5.9 billion, driven by volume growth in natural gas, crude oil, and natural gas liquids including ethane and propane.
Co-CEO Tom Long highlighted that first-quarter results demonstrate the company's assets are well-positioned, while Co-CEO Mackie McCrea expressed confidence in continued demand for ethane, propane, and butane. RBC Capital Markets' Christopher Louney noted that U.S. natural gas demand from data centers could reach 6.1 billion cubic feet per day by 2030, underscoring a strategic advantage for domestic gas infrastructure. The Energy Transfer Tiger Pipeline expansion in Louisiana was cited as another signal connecting gas infrastructure to hyperscale data-center growth.
Looking ahead, the Dakota Access ruling provides some regulatory clarity, but new conditions and expected lawsuits keep headline risk alive. Potential U.S.-Iran talks could pressure crude prices, while slower data-center construction due to regulations, turbine shortages, or community opposition may weigh on midstream stocks. RBC reported about $98 billion in data-center projects were blocked or delayed in Q2 2025 due to community opposition.
When markets reopen Tuesday, Energy Transfer faces a straightforward test: can the stock maintain its position near $20? Traders must balance a higher payout, improved 2026 guidance, and greater clarity on Dakota Access against shares that have already rallied toward their May peak.
