ET vs PAGP: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: PAGP is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ET and PAGP share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ET and PAGP exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Energy Transfer owns and operates one of the largest and most diversified energy-infrastructure portfolios in the United States, spanning roughly 140,000 miles of pipeline across 44 states with assets in all major production basins. Its segments include natural gas gathering, processing, and intrastate and interstate transportation and storage; crude oil transportation and terminalling; NGL transportation, fractionation, and export; and refined products. The business is largely fee-based: it earns money by moving and storing volumes for producers, refiners, utilities, and exporters under long-term contracts, which makes cash flow less directly tied to commodity prices than an exploration company, though volumes and spreads still matter. Recent growth is concentrated in the Permian Basin, NGL exports (which set company records in Q1 2026), and a wave of natural-gas supply agreements tied to data centers and power generation, including deals to deliver gas to Oracle data centers.

Full ET guide

Plains GP Holdings, L.P. is a holding entity whose only real asset is an indirect interest in Plains All American Pipeline, L.P. Plains All American is one of the largest crude oil gathering and long-haul transportation businesses in North America, moving roughly 8 million barrels per day of Permian Basin crude across its systems and operating terminals, storage and export capacity on the Gulf Coast. The company reshaped itself twice in twelve months: it bought the EPIC crude system for ~$2.9 billion in late 2025 and rebranded it Cactus III, then sold its Canadian NGL business to Keyera for ~$3.75 billion in May 2026. What is left is close to a pure-play crude oil midstream operator with about ~$2.9 billion of debt paid down and leverage at ~3.3x, near the low end of its 3.25x to 3.75x target.

Full PAGP guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ET drivers: Fee-based midstream cash flows; High distribution and stated growth target.
• PAGP drivers: Cactus III and Permian long-haul consolidation; A crude-only balance sheet after the Canadian NGL exit.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Energy Transfer's volumes and some spreads remain exposed to commodity cycles, drilling activity, and energy demand, so a downturn in production or prices can pressure cash flow. For PAGP, pAGP holds no operating assets of its own, so every dollar it distributes has to come up through Plains All American first, and a cut at the partnership level flows straight through.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ET if you believe its drivers more; PAGP if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ET and PAGP guides.

ET. Energy Transfer is most often evaluated on cash-flow and yield metrics rather than traditional earnings multiples, because as a midstream MLP its appeal is income from distributions backed by distributable cash flow. As of June 2026 the units yielded roughly 7%, supported by record NGL and Permian volumes and a stated 3% to 5% distribution-growth target. These are descriptive figures tied to the asOf date, not projections, and yields move with the unit price.

PAGP. The trailing P/E of ~10x is flattered by a ~$1.6 billion one-time gain on the Canadian NGL divestiture booked in the second quarter of 2026, so the forward figure near ~13x is the more useful anchor. Revenue is close to meaningless as a valuation input here because Plains buys and resells physical crude, inflating the top line against a thin margin. Midstream investors generally price these businesses on enterprise value against adjusted EBITDA and on distribution coverage, which puts the consolidated Plains complex somewhere around 9x 2026 guided EBITDA.

Headline figures (approximate, 2026-06): ET shows revenue (ttm) ~$89 billion, distributable cash flow (q1 2026, attributable to partners) ~$2.7 billion, distribution yield ~7% (quarterly distribution ~$0.338/unit), 2026 adjusted ebitda guidance ~$18.2-$18.6 billion; PAGP shows revenue (ttm) ~$52 billion, 2026 adjusted ebitda guidance (paa) ~$2.88 billion, plus or minus ~$75 million, market cap (pagp class a) ~$5.8 billion (PAA common units ~$16.1 billion), p/e ratio ~10x trailing, ~13x forward.

ET and PAGP are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ET and PAGP exposure against your real portfolio. It is not an investment adviser.