Think It's Too Late to Buy Energy Transfer? Here's the Biggest Reason There's Still Time.

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].