Time to Buy the Dip on Energy Transfer Stock?

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$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]