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Why Energy Transfer Belongs on Your Watchlist
MarketBeat· 2025-03-12 13:02
Energy Transfer Stock Forecast Today12-Month Stock Price Forecast:$21.5520.80% Upside Moderate BuyBased on 11 Analyst RatingsHigh Forecast$25.00Average Forecast$21.55Low Forecast$20.00Energy Transfer Stock Forecast DetailsToday’s energy sector is constantly changing, and investors are increasingly seeking assets that offer a blend of stability, income, and growth potential. Energy Transfer LP NYSE: ET, a major player in the midstream energy sector, presents a compelling investment opportunity. This company, ...
Energy Transfer: Selloff Triggers Richer Distribution Yields, Bright Data Center Prospects
Seeking Alpha· 2025-03-09 14:18
Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Company and Industry Summary - The analysis is intended solely for informational purposes and should not be considered as professional investment advice [3]. - There is a clear indication that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [4]. - The article does not provide any specific recommendations or advice regarding the suitability of investments for particular investors [4].
Energy Transfer Stock: Is This High-Yielding Blue-Chip A Buy After A 16% Drop
Seeking Alpha· 2025-03-09 13:00
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content for investors [2] - The service includes an active chat room for like-minded investors to share insights and strategies [2]
Time to Buy the Dip on Energy Transfer Stock?
The Motley Fool· 2025-03-08 09:28
Core Viewpoint - Energy Transfer's recent unit price dip presents a buying opportunity for long-term investors seeking passive income, with a distribution yield of approximately 7.3% compared to the S&P 500's 1.3% [2][10] Group 1: Financial Performance - Energy Transfer's unit price has decreased over 15% since early January, following a 50% increase over the past year [1] - The MLP reported a 13% increase in adjusted EBITDA last year, indicating steady growth [3] - The company generated $8.4 billion in distributable cash flow last year, covering its cash distribution of about $4.4 billion with an excess of $4 billion [4] Group 2: Growth Prospects - Energy Transfer is targeting 3% to 5% annual growth in its distribution, supported by increasing earnings and a solid financial profile [4] - The company has secured new expansion projects, including the Hugh Brinson Pipeline, and plans to increase its capital-spending budget to about $5 billion this year [5] - Major growth catalysts include Permian Basin volume growth, rising natural gas power demand, and global demand for U.S. natural gas liquids [7] Group 3: Strategic Initiatives - Energy Transfer is advancing several projects to support growing gas production and demand, such as the Lake Charles LNG export facility [8] - The company has signed contracts to supply gas to new data centers, enhancing its long-term growth outlook [9] - The current valuation does not reflect the company's long-term growth prospects, making the recent price dip an attractive buying opportunity [10]
Energy Transfer Is Cashing In on a Powerful New Growth Opportunity
The Motley Fool· 2025-03-04 09:07
Energy Transfer (ET -1.35%) is known for the income it generates for investors. The master limited partnership (MLP) currently pays a 6.7%-yielding cash distribution. However, investors shouldn't discount its growth prospects. It delivered double-digit earnings and cash-flow growth last year, fueled by a combination of acquisitions, organic expansion projects, and strong market conditions. The MLP sees a lot more growth coming down the pipeline, driven partly by an expected surge in power demand over the co ...
ET Stock Outperforms its Industry in 12 Months: How to Play
ZACKS· 2025-02-27 16:00
Units of Energy Transfer LP (ET) have rallied 31.9% in the past 12 months compared with the Zacks Oil and Gas - Production Pipeline - MLB industry’s growth of 24.6%. The oil and gas midstream firm owns a wide network of pipelines across the United States and is pursuing opportunities to serve growing power loads from new demand centers across its network.The firm is also a top exporter of liquefied petroleum gas and is working to expand natural gas liquids (NGL) export facilities to cater to the rising dema ...
Energy Transfer: An Undervalued Cash Cow With More To Offer
Seeking Alpha· 2025-02-26 14:34
Because I run a hyper-concentrated portfolio, the number of firms that I own shares of is quite limited. However, one of the businesses that I have owned for quite some time now is Energy Transfer (NYSE: ET ). ThisCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E& ...
Think It's Too Late to Buy Energy Transfer? Here's the Biggest Reason There's Still Time.
The Motley Fool· 2025-02-25 10:11
Core Viewpoint - Energy Transfer has experienced significant growth in 2023, with a price increase of over 40%, and despite this surge, it remains an attractive investment due to its low valuation and strong growth potential [1][2]. Financial Performance - Energy Transfer has achieved a record adjusted EBITDA of $15.5 billion, reflecting a 13% growth from the previous year, driven by acquisitions, organic expansion, and favorable market conditions [2]. - The company is currently trading at the second-lowest valuation among its peers, indicating potential for further price appreciation [2]. Growth Projections - The company anticipates a moderation in EBITDA growth to around 5% for the current year, primarily due to a lack of significant acquisition activity [3]. - Starting next year, Energy Transfer expects a resurgence in growth driven by organic expansion projects, with planned capital expenditures of $5 billion for this year following a $3 billion investment last year [3][4]. Future Expansion - Major projects are expected to begin operations from mid-2023 through the end of 2024, with significant earnings growth anticipated in 2026 and 2027 [4]. - Energy Transfer is developing additional expansion projects, including initiatives to meet the growing gas demand from AI data centers, which is one of three key catalysts for growth through the end of the decade [5].
The Best Pipeline Stock to Invest $2,000 in Right Now
The Motley Fool· 2025-02-20 11:15
Core Viewpoint - The pipeline master limited partnerships (MLPs) sector is experiencing strong performance, with the Alerian MLP Infrastructure Index showing a total return of 26.7% in 2024 and nearly 10% year-to-date [1] Industry Summary - The MLP pipeline sector is attracting investor interest due to strong distribution payments, robust yields, historically low valuations, and increasing growth opportunities driven by rising natural gas demand [2] - Energy Transfer is highlighted as a solid investment option within this sector, particularly for investors looking to invest a few thousand dollars [2] Company Summary - Energy Transfer operates one of the largest integrated midstream systems in the U.S., focusing on the transportation, storage, and processing of hydrocarbons, with a strategic position in the Permian Basin, known for its favorable drilling economics [3] - The company is well-positioned to benefit from growing energy needs related to artificial intelligence and natural gas exports, with access to low-cost natural gas [4] - Energy Transfer plans to increase its growth capital expenditure (capex) to $5 billion in 2025, up from $3 billion in the previous year, focusing on projects in the Permian region [5] - The company has signed an agreement to supply natural gas to data center developer CloudBurst and has received requests to connect to approximately 70 data centers across 12 states [6] - Energy Transfer anticipates mid-teens returns on its growth projects, with a significant impact on earnings before interest, taxes, depreciation, and amortization (EBITDA) expected in 2026 and 2027 [7] - The company increased its distribution by 3.2% year-over-year to $0.325, resulting in a forward yield of about 6.5%, with plans to grow distributions by 3% to 5% annually [8] - The distribution is well-supported by its distributable cash flow (DCF), which was $1.98 billion last quarter, with a distribution coverage ratio of 1.8 [9] - With the increase in capex to $5 billion, Energy Transfer is projected to pay out around $4.5 billion in distributions, which should be covered by its growing DCF [10] - Despite strong performance and growth opportunities, Energy Transfer trades at a relative and historical discount, with an enterprise value (EV) to EBITDA multiple of 8.5 based on 2025 estimates [11][12] - The stock is trading below pre-pandemic levels, where it often had an EV/EBITDA multiple above 15, and the midstream MLP group averaged 13.7 between 2011 and 2016 [13] - Overall, Energy Transfer is considered an inexpensive stock with attractive yield and growth potential, making it a suitable option for investors entering the sector [14]
3 Reasons to Buy Energy Transfer and Hold Through the End of the Decade
The Motley Fool· 2025-02-20 09:38
Core Viewpoint - Energy Transfer is positioned as both an income investment with a distribution yield around 6.5% and a growth opportunity, expecting solid growth through at least the end of the decade [1] Financial Performance - In the previous year, Energy Transfer achieved a 13% increase in adjusted EBITDA and a 10% rise in distributable cash flow, primarily driven by acquisitions, including the merger with Crestwood Equity Partners and the acquisition of WTG Midstream [2] Growth Projections - For the current year, adjusted EBITDA growth is expected to moderate to about 5%, influenced by the WTG Midstream deal and organic expansion projects, with a reacceleration of earnings growth anticipated in 2026 [3] Growth Drivers - The company identifies three main growth areas: strong volume growth from the Permian Basin, increasing demand for natural gas, and robust global demand for U.S. NGL production [4][6][7] Permian Basin Expansion - Energy Transfer has approved several expansion projects in the Permian Basin, including the Hugh Brinson Pipeline, which will transport 1.5 billion cubic feet per day, with potential expansion to 2.2 Bcf/d at a cost of $2.7 billion [4][5] Natural Gas Demand - The company is capitalizing on the anticipated significant increase in natural gas demand, evidenced by a new partnership with CloudBurst to support gas-fired power needs for data centers and electric utilities [6] NGL Infrastructure Development - Energy Transfer is investing $1.1 billion in various NGL-related projects to enhance its capacity for production, transportation, storage, and export of NGLs [7] Future Opportunities - The company is exploring additional expansion opportunities, including potential projects to supply gas to over 70 prospective data center projects across multiple states, which could further enhance its long-term growth outlook [8] Investment Appeal - Energy Transfer presents a compelling long-term investment opportunity by offering high-yield cash distributions alongside significant expected earnings growth driven by its strategic initiatives [9]