Energy Transfer(ET) The Motley Fool·2025-02-20 09:38Core 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 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]