Financial Data and Key Metrics Changes - Adjusted EBITDA for 2024 was $15.5 billion, up 13% from 2023, marking a partnership record [6] - Distributable cash flow (DCF) attributable to partners was $8.4 billion, a 10% increase from 2023, also a partnership record [6] - For Q4 2024, adjusted EBITDA was $3.9 billion, compared to $3.6 billion in Q4 2023 [7] - DCF for Q4 2024 was $2 billion, consistent with Q4 2023 [8] Business Line Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA was $1.1 billion, up from $1.04 billion in Q4 2023, driven by higher throughput and rates [9] - Midstream segment adjusted EBITDA increased to $705 million from $674 million in Q4 2023, attributed to higher volumes in the Permian Basin [10] - Crude oil segment adjusted EBITDA decreased to $760 million from $775 million in Q4 2023, impacted by lower transportation revenue [11] - Interstate natural gas segment adjusted EBITDA fell to $493 million from $541 million in Q4 2023, due to lower interruptible utilization [12] - Intrastate natural gas segment adjusted EBITDA rose to $263 million from $242 million in Q4 2023, due to pipeline and storage optimization gains [13] Market Data and Key Metrics Changes - Record volumes were moved across interstate, midstream, NGL, and crude segments for the year [7] - Record NGL exports were achieved from Nederland and Marcus Hook terminals [7] Company Strategy and Development Direction - The company plans to spend approximately $5 billion on organic growth capital in 2025, focusing on various segments including intrastate natural gas and NGL [15][16][17][18] - Key growth projects include the Mustang Draw processing plant and expansions at existing terminals to meet international NGL demand [18][23][24] - The company is positioned to capitalize on the anticipated rise in natural gas demand, particularly for power generation and data centers [30][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the Permian Basin and the increasing demand for natural gas [35] - The new administration is viewed positively, with expectations of reduced regulatory burdens benefiting the industry [71][74] - Adjusted EBITDA guidance for 2025 is projected between $16.1 billion and $16.5 billion, reflecting a 5% increase from 2024 [34] Other Important Information - The company is actively pursuing M&A opportunities as part of its growth strategy, while also focusing on organic growth projects [97][100] - The company is renegotiating contracts from previous years to align with current market conditions [140] Q&A Session Summary Question: Can you talk about the returns you're seeing with incremental projects? - Management targets mid-teen to upper teen rates of return depending on project synergies [40][41] Question: Does the $5 billion growth CapEx include any unsanctioned projects? - The $5 billion includes sanctioned projects with great rates of return [50] Question: Is the CloudBurst project supporting a new gas-fired power plant? - Yes, the project is expected to scale up over time, potentially reaching 450 million cubic feet per day [55][56] Question: How much do you think natural gas demand could grow in the next five to seven years? - Management believes they can capture between 3 and 4 billion cubic feet of demand over the next 18 to 24 months [83] Question: Are you worried about competition in the NGL space? - Management focuses on their customers and market needs rather than competitors, believing they can fill their assets effectively [108][109] Question: How do you view the rate of contracts from 2019 and 2020? - The company is in negotiations to restructure those contracts to reflect current pricing [140]

Q4 2024 Earnings February 11, 2025 Forward-looking Statements / Legal Disclaimer Management of Energy Transfer LP (ET) will provide this presentation in conjunction with ET's 4th quarter 2024 earnings conference call. On the call, members of management may make statements about future events, outlook and expectations related to Sunoco LP (SUN), USA Compression Partners, LP (USAC), and ET (collectively, the Partnerships), and their subsidiaries and this presentation may contain statements about future events ...

ENERGY TRANSFER REPORTS FOURTH QUARTER 2024 RESULTS AND ANNOUNCES 2025 OUTLOOK Dallas – February 11, 2025 – Energy Transfer LP (NYSE:ET) ("Energy Transfer" or the "Partnership") today reported financial results for the quarter and year ended December 31, 2024. Energy Transfer reported net income attributable to partners for the three months ended December 31, 2024 of $1.08 billion. For the three months ended December 31, 2024, net income per common unit (basic) was $0.29. Adjusted EBITDA for the three month ...

Core Viewpoint - The demand for natural gas is expected to rise significantly due to the increasing energy requirements of AI data centers, presenting growth opportunities for pipeline companies like Energy Transfer [1][2]. Company Overview - Energy Transfer is positioned to benefit from the anticipated surge in natural gas demand driven by AI technologies [2][10]. - The company has a vast pipeline network of 105,000 miles and a storage capacity of 236 billion cubic feet, enhancing its ability to supply gas consistently [5]. Recent Developments - Energy Transfer has entered a long-term agreement to supply up to 450,000 MMBtus of natural gas per day to CloudBurst's AI-focused data center in Central Texas, which could generate approximately 1.2 gigawatts of electricity [3][4]. - This agreement marks Energy Transfer's first commercial contract to supply gas directly to a data center, indicating potential for future contracts in this sector [6][10]. Market Potential - The company is currently serving gas-fired power plants in 15 states and has received requests to connect to approximately 45 additional power plants, which could consume up to 6 Bcf per day [6][7]. - There are over 40 prospective data centers in 10 states that could collectively consume up to 10 Bcf per day, highlighting significant incremental demand for natural gas [6][7]. Infrastructure Investments - Energy Transfer has approved the $2.7 billion Hugh Brinson Pipeline project, which will transport 1.5 Bcf/d of gas from the Permian Basin to Dallas, supporting the growing demand for gas [8]. - The company is also investing in gas-fired power generation capacity to meet the electricity needs along its pipeline system in Texas [8]. Financial Outlook - Increased gas volumes are expected to enhance Energy Transfer's cash flow, allowing for higher cash distributions to investors, with a target growth of 3% to 5% per year for its current 6.4% yield [9][11].

Core Viewpoint - Bill Gross, a prominent figure in yield-focused investments, has recently expressed a more cautious outlook on master limited partnerships (MLPs), suggesting that while they still offer attractive yields, the rally in pipeline stocks may have peaked [2][6]. Group 1: MLPs and Pipeline Stocks - MLPs are known for their high tax-advantaged yields and attractive valuations, making them appealing for total return potential [1]. - Pipeline stocks have surged due to anticipated increases in natural gas demand driven by factors such as AI data centers and the electrification of various sectors [3]. - Leading natural gas pipeline operator Kinder Morgan has secured contracts for three large-scale projects totaling $5 billion, indicating strong growth prospects in the pipeline sector [4]. Group 2: Investment Performance and Yields - Pipeline stocks are currently trading at higher valuations and lower dividend yields compared to a year ago, reflecting increased investor interest [5]. - Despite the cooling enthusiasm, Gross still favors MLPs for their relatively attractive income streams, with yields around 6.5% [6][7]. - Energy Transfer, a leading MLP, expects to increase its payout by 3% to 5% annually and has significant growth projects underway, including a $2.7 billion natural gas pipeline [8]. Group 3: Other MLPs of Interest - Western Midstream Partners offers a higher yield of 8.7% and has improved its financial flexibility through acquisitions, allowing for increased distributions [9]. - MPLX has a yield of 7.2% and has grown its payout at over 10% annually since 2021, with a strong growth outlook through 2029 [10]. - These MLPs are considered compelling investment opportunities for income-focused investors due to their strong financial profiles and potential for continued distribution growth [11]. Group 4: Investment Strategy Considerations - While some investors may consider selling MLP investments after significant gains, they remain attractive for those seeking a steady income stream [12].

Core Viewpoint - Energy Transfer LP (ET) is anticipated to show improvements in both revenue and earnings for the fourth quarter of 2024, with a revenue estimate of $24.22 billion, reflecting a 17.95% increase year-over-year, and earnings estimated at 36 cents per unit, which has seen a 5.9% increase in estimates over the past 90 days [1][2]. Financial Performance - The Zacks Consensus Estimate for ET's fourth-quarter revenues is $24.22 billion, indicating a 17.95% increase from the previous year [2]. - The earnings estimate for the current quarter is 36 cents per unit, with a 5.9% increase in estimates over the last 90 days [2]. - Energy Transfer's earnings surprise history shows that it has beaten the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 3.43% [3][4]. Earnings Drivers - The company's earnings are expected to benefit from organic expansion projects and strategic acquisitions, particularly the WTG acquisition in the Permian Basin [8]. - The Interstate Natural Gas Pipeline segment is well-positioned to leverage changing supply and demand dynamics, while the Intrastate segment is expected to capture additional revenues from favorable changes in natural gas supply and demand [9]. - Strong export volumes of liquefied petroleum gas and the expansion of natural gas liquids (NGL) export facilities, with a capacity of nearly 1.1 million barrels per day, are likely to enhance performance [10]. - Approximately 90% of ET's earnings are generated from fee-based contracts, ensuring a consistent revenue stream [11]. Market Position and Valuation - ET's units have appreciated by 44.3% over the past year, outperforming the industry average of 33.8% [12]. - The current trailing 12-month EV/EBITDA ratio for ET is 10.85X, which is lower than the industry average of 12.19X, indicating relative undervaluation [13]. - Other operators in the sector, such as Plains All American Pipeline and Enterprise Products Partners, are trading at lower EV/EBITDA multiples of 9.56 and 10.52, respectively [15]. Strategic Outlook - Energy Transfer has over 130,000 miles of pipeline and related infrastructure across 44 states, positioning it well to benefit from increasing oil, natural gas, and natural gas liquid production in the U.S. [16]. - The company is actively pursuing opportunities to meet growing power demands, having signed agreements to provide gas loads to gas-fired power plants totaling nearly 550,000 MMBtu/d [17]. - Despite potential challenges, the company is advised for long-term accumulation due to its extensive asset base, cash distribution capabilities, and focus on growth through both organic and inorganic means [19].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Aims to capitalize on price trends by assessing short-term price changes and earnings estimate revisions [5] VGM Score - Combines all three Style Scores to provide a comprehensive evaluation of stocks based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Energy Transfer LP - Energy Transfer is a major midstream energy company in North America, operating nearly 130,000 miles of pipelines across 44 states [11] - Currently rated 3 (Hold) with a VGM Score of A, Energy Transfer has a Momentum Style Score of B and has seen a 3.2% increase in shares over the past four weeks [12] - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate now at $1.37 per share, and an average earnings surprise of 3.4% [12]

Core Insights - The article discusses the bullish outlook on Energy Transfer LP Common Units (NYSE: ET) by an analyst who has previously written three articles on the company, all of which were positive [1] - The analyst upgraded the stock in mid-October 2024, indicating a strong belief in the company's future performance [1] Company Analysis - Energy Transfer LP is highlighted as a focus for investment, with the analyst expressing confidence in its potential for growth [1] - The analyst is associated with a family office that manages diverse investments, suggesting a broad understanding of market dynamics [1] Investment Strategy - The analyst runs an investing group called Beyond the Wall Investing, which provides insights similar to those used by institutional investors [1] - There is a potential for the analyst to initiate a long position in ET within the next 72 hours, indicating a proactive investment strategy [1]

Group 1 - The investor has a contrarian investment style, focusing on high-risk, illiquid options and shares, with a portfolio split of approximately 50%-50% [1] - The investment strategy involves buying stocks that have recently experienced sell-offs due to non-recurrent events, especially when insiders are purchasing shares at lower prices [1] - Fundamental analysis is employed to assess the health of companies, their leverage, and to compare financial ratios with sector and industry averages [1] Group 2 - Technical analysis is utilized to optimize entry and exit points, primarily using multicolor lines for support and resistance levels on weekly charts [1] - The investor conducts professional background checks on insiders who purchase shares after sell-offs to ensure credibility [1] - The investment timeframe typically ranges from 3 to 24 months, indicating a medium-term investment horizon [1]

Core Viewpoint - Energy Transfer LP (ET) is experiencing a bullish trend, trading above its 50-day and 200-day simple moving averages, and is well-positioned to capitalize on increasing demand for oil, natural gas, and natural gas liquids in the U.S. market [1][22]. Company Overview - Energy Transfer owns over 130,000 miles of pipelines across 44 states in the U.S. and is expanding operations through both organic growth and acquisitions, including a significant acquisition in the Permian Basin [7]. - The company generates nearly 90% of its revenues from fee-based contracts, which mitigates risks associated with commodity price fluctuations [8]. Financial Performance - ET's stock closed at $19.81 on January 27, with a 36.4% increase over the past year, outperforming the industry average of 30.1%, the S&P 500's growth of 22.8%, and the Zacks Oil-Energy sector's return of 6.8% [3]. - The Zacks Consensus Estimate for ET's 2025 earnings per unit and revenue indicates year-over-year growth of 6.1% and 12.76%, respectively [14]. Distribution and Insider Ownership - Energy Transfer has increased its quarterly cash distribution to 32.50 cents per common unit for Q4 2024, reflecting a 3.2% increase compared to Q4 2023, with a total of 12 distribution rate increases in the past five years [13]. - Insider ownership in ET stock is nearly 10%, which is higher than its industry peers, indicating confidence in the company's future prospects [12]. Valuation Metrics - ET's current trailing 12-month EV/EBITDA is 10.69X, compared to the industry average of 12.37X, suggesting that the company is undervalued relative to its peers [19].