Wells Fargo Sees Further Upside in Energy Transfer (ET Stock)

Energy Transfer LP (NYSE:ET) is one of the 10 cheapest oil and gas stocks to invest in. On January 7, Wells Fargo reaffirmed its Buy rating and price target of $23 for the stock. The price target suggests a further 36% upside from the current levels, which is consistent with the median Wall Street analysts’ upside of 30%.

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On January 6, Energy Transfer LP (NYSE:ET) announced its plans to invest between $5 billion and $5.5 billion in growth capital during 2026. The majority of its investment is focused on the projects that strengthen and expand its natural gas network. These investments project consolidated adjusted EBITDA of $17.3–$17.7 billion and continued growth in 2026, including contributions from USA Compression Partners (USAC) and Sunoco LP (SUN).

The company also expects several major projects to scale up or enter service in 2026, including the Mustang Draw I and Mustang Draw II processing plants in the Permian Basin, the Nederland Flexport NGL expansion, NGL projects on the Lone Star Express and Gateway Pipelines, Hugh Brinson Pipeline Phase I, and natural gas pipeline projects serving data center facilities in Texas.

Moreover, the company said that it will continue to target a long-term annual distribution growth rate of 3% to 5%. Cash distributions will be supported by an expanding asset base that offers a strong product and geographic diversity. The company also benefits from its balanced earnings across its nationwide network of natural gas, NGL, and crude oil assets.

Energy Transfer LP (NYSE:ET) operates as a provider of energy-related services in the United States. The company operates through the Interstate Transportation and Storage; Investment in Sunoco LP; Intrastate Transportation and Storage; Natural Gas Liquid (NGL) and Refined Products Transportation and Services; Crude Oil Transportation and Services; Midstream; Investment in USA Compression Partners, LP (USAC); and All Other segments.

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Disclosure: None. This article is originally published at Insider Monkey.