Energy Transfer (NYSE: ET) reported mixed Q4 2025 results with $25.32 billion in revenue but declining net income to $928 million. The midstream giant raised its 2026 EBITDA guidance to $17.45 billion to $17.85 billion while suspending its Lake Charles LNG project to prioritize natural gas infrastructure.

Despite earnings pressure, the company achieved operational records with 6% growth in crude oil transportation and 12% jumps in NGL exports and terminal volumes. Energy Transfer increased its quarterly distribution to $0.3350 per unit, marking continued payout growth. The company also upsized its Desert Southwest pipeline expansion to 2.3 Bcf/d capacity at a $5.6 billion cost.

The strategic pivot toward natural gas infrastructure includes 900 MMcf/d deliveries to Oracle data centers, capitalizing on surging AI-driven energy demand. ET shares gained 11.8% year-to-date, outperforming the broader midstream MLP sector's 11.3% gain. This shift positions Energy Transfer to benefit from the accelerating transition to natural gas as AI data centers drive unprecedented power demand.