ET: San Fran NDR Takeaways—Positive Momentum Continues - Remains a Top Pick

Research evidence excerpt

ET: San Fran NDR Takeaways—Positive Momentum Continues - Remains a Top Pick

Energy Transfer LP Equity Research

Attendees:

• Dylan Bramhall, Chief Financial Officer

• Christopher Hefty, SVP of Mergers and Acquisitions

• William Baerg, VP, Investor Relations

ET management provided insights on several topics, which we group below thematically.

Macro Views

• Producer Capex Could Increase in 2026: Producers remain cautiously constructive with no formal

change to capex guidance, but timing is accelerating. ET flagged a pull-forward of spend, implying a

higher likelihood of upward capex revisions in H2’26 as activity ramps faster than initially planned.

• Expecting Robust Permian Gas Growth. ET sees robust Permian gas growth over the next several

years, which should drive continued investment across its value chain. While ET has no official

"house" view, mgt noted that most industry participants expect Permian to grow 2 Bcf/d annually

for the next few years. Reliability issues on competing pipes are prompting shippers to shift

volumes toward ET systems as contracts expire (on competing pipes).

• Permian Gas Growth Could Spur Additional Pipelines. Management anticipates another round of

Permian gas pipeline builds as growth continues. Strong re-contracting activity has extended key

pipelines to 2035+, locking in long-term utilization and visibility. ET believes another Permian gas

takeaway pipeline could FID this year. Management sees Permian gas takeaway becoming tight

again by mid-28 and remaining so until the Eiger and DSW pipelines come online.

• Permian → LNG / SE Demand: ET is evaluating projects to move Permian gas beyond Texas into

Louisiana to meet rising Southeast utility and LNG-linked demand, reinforcing its downstream

optionality and market reach.