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Energy Transfer Pitched as 7.5% Yield Play on Hyperscaler-Backed Pipeline Contracts

A backlog of multi‑year transport deals with data centers helps lock in fee revenue.

Overview

  • Coverage highlights more than 6 Bcf per day of newly contracted pipeline capacity with demand‑pull customers over the past year.
  • Management touts a weighted‑average contract life of about 18 years with projections of over $25 billion in future firm‑transport revenue.
  • Energy Transfer signed multiple agreements with Oracle to supply roughly 900,000 Mcf per day to three data centers via laterals tied to the Hugh Brinson and North Texas pipelines.
  • Entergy Louisiana’s 20‑year agreement begins in December 2028 for 250,000 MMBtu per day to fuel power generation supporting Meta’s Richland Parish data center.
  • The company outlines $5.0–$5.5 billion of 2026 growth capital focused on natural gas pipelines serving data‑center demand, while noting tighter Permian NGL fees as rivals add capacity.