Six months into President Trump’s second term, pipeline companies like Energy Transfer (ET) are still waiting for his pro-oil agenda to deliver regulatory changes that would ease drilling restrictions and revive the “drill, baby, drill” mantra.
While Trump has taken several steps to boost domestic oil production — signing executive orders, declaring a “national energy emergency,” and urging producers to ramp up output — key deregulation efforts and proposed oil development expansions have yet to be enacted.
At the same time, falling oil prices, ongoing tariff uncertainty, and signs of a slowing economy appear to have put many energy companies in a holding pattern. Trump's push for lower oil prices has also undercut profitability.
“Producing companies don't make decisions based on day-to-day headlines, or presidential posts,” said Clay Seigle, an energy analyst at the Center for Strategic and International Studies.
“They decide capital spending programs (including drilling and fracking) based on profitability and shareholder returns, and Trump's $50 oil price target is a big disincentive,” he added.
Energy Transfer holds a unique position: Trump previously invested in its predecessor, Energy Transfer Partners LP, before it merged to form the current company.
CEO Kelcy Warren has been a vocal Trump supporter, calling his 2024 win a “breath of fresh air.” His support also came in the form of significant campaign contributions in Trump’s 2016, 2020, and 2024 presidential runs.
Even so, ET stock has yet to see a meaningful boost under the new administration, with oil prices fluctuating sharply due to geopolitical risks.
ET stock is stuck in a holding pattern
Energy Transfer’s stock performance in 2025 has been underwhelming, with a year-to-date return of -10.5%. Over the past month, shares have remained relatively flat, trading around $17.
At its current price, Energy Transfer holds a market capitalization of $60.5 billion. The company’s price-to-earnings (P/S) ratio is just over 13, lower than the industry average for oil and gas midstream firms.
Despite the sluggish stock performance, Energy Transfer posted a strong first quarter, with revenue rising to $1.32 billion from $1.24 billion a year earlier.
Net income per common unit came in at $0.37, while adjusted earnings climbed to $4.1 billion, up from $3.88 billion in Q1 2024.
Among the quarter’s highlights were a long-term agreement with Cloudburst Data Centers to supply natural gas for its AI-powered facilities, and the commissioning of the first of eight 10-megawatt natural gas-fired power generation units in Texas.
Energy Transfer is scheduled to report on second-quarter earnings in early August.
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