Energy Transfer’s growth has slowed this year.

It expects to complete several expansion projects in the coming quarters to boost its growth.

The MLP also recently secured several new gas supply deals.

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While Energy Transfer (NYSE: ET) pays a high-yielding distribution (currently 7.8%), growth is a huge part of its DNA. The master limited partnership (MLP) had grown its earnings at a 10% compound annual rate from 2020 through 2024. While growth will slow this year, a reacceleration is on the horizon.

The midstream giant has several expansion projects entering service over the next year, which will fuel incremental cash flow. Meanwhile, its longer-term growth outlook just keeps getting better as the MLP secures new expansion opportunities. This growth could give it the fuel to produce robust total returns in the coming years.

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Energy Transfer recently reported its third-quarter results. The midstream company generated $3.8 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the period, down from $4 billion in the year-ago quarter. Meanwhile, it produced $1.9 billion of distributable cash flow, below the $2 billion it generated last year.

That was still plenty of cash to cover the company’s high-yielding distribution payment, which came in at more than $1.1 billion during the quarter. The company has now produced nearly $6.2 billion of cash this year, easily covering the $3.4 billion it distributed to investors.

Energy Transfer’s earnings and cash flow fell during the period, primarily due to several one-time items. That offset what was another strong period operationally. The company set new records for NGL and refined products terminals volumes (up 10%), NGL transportation volumes (up 11%), NGL exports (up 13%), and midstream gathered volumes (up 3%). Fueling those rising volumes were the increased capacity from previously completed acquisitions and expansion projects.

Despite the earnings slump in the period, Energy Transfer is on track to deliver adjusted EBITDA slightly below the lower end of its $16.1 billion-$16.5 billion guidance range. That implies nearly 4% growth from last year’s level.

While Energy Transfer’s earnings growth rate has slowed this year, it’s on track to reaccelerate in the coming years. The company is investing $4.6 billion into growth capital projects this year and expects to fund another $5 billion in growth-related capital spending in 2026. These investments will enable the company to complete several expansion projects over the next year, while laying the groundwork for future growth.

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