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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsEnergy Transfer had the wider reported distribution-coverage cushion in the quarter ended June 30, 2026, but that does not prove its distribution is safer overall. Energy Transfer’s reported figures imply about 2.2× coverage; Enterprise Products Partners (EPD) reported 1.9× operational coverage. Because the partnerships calculate distributable cash flow differently—and the debt figures they report are not directly comparable—the evidence supports an edge for Energy Transfer on this quarter’s coverage snapshot, not a definitive winner on overall financial safety.
What the latest coverage figures show
The comparison uses the latest results available as of October 4, 2026: each partnership’s second-quarter 2026 results. Coverage is generally distributable cash flow divided by distributions for the same period, but the precise cash-flow measure and adjustments differ by issuer.
| Measure | Energy Transfer (ET) | Enterprise Products Partners (EPD) |
|---|---|---|
| Cash-flow measure and coverage | $2.587 billion of adjusted DCF attributable to partners divided by $1.172 billion of partner distributions implies about 2.2× coverage. This is a calculation from ET’s reported figures, not a company-quoted coverage ratio. | $2.312 billion of operational DCF; EPD reported 1.9× coverage of distributions declared for the quarter. |
| Cash after distributions / retained DCF | The difference between the partner-level DCF and distributions above is about $1.42 billion, calculated from ET’s reported figures. | EPD reported that it retained $1.1 billion of DCF. |
| Distribution declared for the quarter | $0.34 per common unit, or $1.36 annualized; ET described this as its nineteenth consecutive quarterly increase. | $0.56 per unit, or $2.24 annualized; the declared amount was 2.8% higher than in the year-earlier quarter. |
| Debt and revolver information | $68.393 billion of long-term debt, excluding current maturities, at June 30, 2026; $3.764 billion available on its $5.0 billion five-year revolving credit facility, which matures April 11, 2029. | $33.532 billion of total debt principal outstanding at June 30, 2026. |
| Capital program | Expected 2026 growth capital investment: $5.6–$5.9 billion. | $6.5 billion of organic growth projects under construction. EPD expected $2.9–$3.4 billion of 2026 net growth capital and $600 million of sustaining capital. |
ET’s August 4, 2026 earnings release also reported second-quarter adjusted EBITDA of $5.07 billion. EPD’s July 30, 2026 release reported record second-quarter Adjusted EBITDA of $2.829 billion. These are issuer-defined non-GAAP measures, so they should not be treated as fully standardized figures for comparing the partnerships.
Why the coverage edge is not a complete safety verdict
The cash-flow measures are not identical
ET’s roughly 2.2× figure above is calculated using adjusted DCF attributable to partners and distributions to partners. EPD, by contrast, explicitly reported operational DCF coverage. Its 2025 Form 10-K explains that operational DCF excludes specified items, including proceeds from asset sales and other matters and monetization of interest-rate derivatives, and cautions that its DCF calculation may not be comparable to similarly titled measures used by other companies. EPD also identifies GAAP net cash flow from operating activities as the most directly comparable GAAP measure and says DCF should not replace GAAP measures.
#1 Best Overall
So the ratios are useful for gauging each partnership’s reported payout headroom, but their difference is not a clean, standardized ranking. Nor does a single strong quarter establish how cash generation or coverage will hold up under weaker operating conditions.
Debt totals do not establish which balance sheet is safer
The debt amounts in the table use different presentations: ET’s figure excludes current maturities, while EPD reports total debt principal outstanding. Absolute debt alone does not show how much cash offsets debt, how debt relates to normalized cash generation, or how maturities and financing needs compare. The available figures therefore do not support calling either balance sheet categorically safer. A fair leverage comparison would require consistent calculations from both partnerships’ June 30, 2026 filings, including the same treatment of cash, current maturities, subsidiaries, preferred units, and noncontrolling interests.
Rank #2
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ET additionally disclosed that it issued junior subordinated notes in July: $650 million and $1.10 billion due in 2057, with initial stated interest rates of 6.550% and 6.700%, respectively. Those issuances provide financing context but do not, by themselves, settle the relative leverage question.
What could support or pressure future distributions
Cash retained must compete with investment and financing needs
Cash left after distributions can provide flexibility, but it is not necessarily fully discretionary: partnerships also have operating costs, sustaining investment, debt service, and growth commitments. EPD reported $1.169 billion of total capital investment during the quarter, including $1.0 billion for growth projects and $140 million for sustaining capital. Separately, its payout ratio including common-unit repurchases was 56% of Adjusted CFFO for the 12 months ended June 30, 2026. That trailing ratio uses a different period and denominator from quarterly DCF coverage.
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Both partnerships’ growth programs could add future cash flow, but projects also bring construction, financing, execution, and commissioning demands. Planned spending or projects under construction should not be treated as guaranteed future distribution support.
Operating breadth does not eliminate variability
ET reported year-over-year second-quarter increases of 13% in NGL transportation volumes, 25% in NGL exports, 4% in crude-oil transportation, and 4% in midstream gathered volumes. It also said no single business segment contributed more than one-third of consolidated adjusted EBITDA in the quarter, indicating that cash generation was not concentrated in one segment by that measure.
Rank #4
EPD reported record pipeline volume of 14.7 million barrels-per-day equivalent, up 8%, and record marine-terminal volume of 2.8 million barrels per day, up 33%. The company said marine-terminal volumes returned to normal levels in June and July after unusually strong April and May activity tied to demand to backfill volumes affected by Middle East hostilities. The episode illustrates why one quarter’s record volumes need context: volume, margin, customer timing, commodity-linked activity, weather, and other factors can affect results.
Both partnerships have broad midstream operations, but that label does not mean every source of cash flow is fixed-fee or immune to commodity, volume, customer, or operating risks.
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How to read the comparison
- For recent reported payout headroom: ET has the advantage on the figures shown, while EPD’s reported coverage and retained DCF also indicate a substantial cushion in the quarter.
- For balance-sheet safety: the disclosed debt totals are not comparable enough to choose a winner. A consistent leverage and maturity analysis is needed.
- For future resilience: weigh recurring cash generation against sustaining investment, growth commitments, financing needs, and operating variability—not just the distribution streak or one quarter’s coverage.
ET’s release described a long run of quarterly increases, while EPD’s official materials identify 27 consecutive years of annual increases through 2025. Those records provide historical context, not assurance that either partnership will maintain or raise its distribution.
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