Gas Momentum Builds: 2Q26 Preview. Stay Buy

Research evidence excerpt

Gas Momentum Builds: 2Q26 Preview. Stay Buy

0.6bcf/d of gas supply deals and 1.4bcf/d of gas pipeline projects)

should provide clear path for upside risk to both our and street estimates. BUY, with more upside in units

Exhibit 1 - ET vs EPD FY1 (2027) EV/EBITDA

expected to come from both re-rating and estimate revisions. Restating $23/unit PT on unchanged MtM Valuation Spread (%)

multiple.

Our 4.8% adjusted EBITDA CAGR still above street of 4.4%, and additional project/deals would be

incremental to our outlook. Our 4.8% adjusted EBITDA CAGR forecast for ET's standalone business

remains ~1-3% above street estimate between FY27-30e - with most of the variance residing in its

NG segments. However, we note street estimates have revised meaningfully higher from a ~3.8%

CAGR to now ~4.4% since end of May; again, the variance driver being revisions in its NG segment. .Source: Jefferies LLC, FactSet, and Visible Alpha

Shares are trading back off their historical

All eyes on gas project FID and 'breadcrumbs' for additional 'line-of-sight' projects, while updated lows. Can further turnover in management

expectation on NGL cliff would be welcomed. ET has established a robust cadence of NG project help to further shed its perceived legacy

announcements every quarter of late; our focus remains squarely on the new project FIDs and of outsized large construction risk? Real

following management's 'breadcrumbs' for maturing 'line-of-sight' projects. In addition, we are or perceived, we see latest evolution as

closely watching APS' August 3rd IRP filing (docket: E-99999A-25-0058) as an early demand gauge for the only helping to further reaffirm ET's identity.

gas demand in Arizona.