Core Viewpoint - The article discusses the preference for Chevron over Energy Transfer LP, indicating a strategic investment choice based on independent research findings [1]. Group 1 - Energy Transfer LP stock was previously analyzed on March 13, 2025, with a recommendation to buy Chevron instead [1]. - The investment style emphasized by the company focuses on providing actionable and clear investment ideas derived from independent research [1]. Group 2 - The company claims to have assisted its members in outperforming the S&P 500 while avoiding significant losses during periods of high volatility in both equity and bond markets [2]. - A trial membership is offered to potential investors to evaluate the effectiveness of the company's investment methods [2].

Core Viewpoint - The energy sector is facing challenges due to macroeconomic uncertainty and commodity price volatility, but some companies are positioned to potentially exceed earnings expectations, which could positively impact their stock prices in the near term [1]. Sector Snapshot - Oil prices have decreased in Q1 2025, with West Texas Intermediate crude averaging $71.84 per barrel, down from $77.56 in Q1 2024, attributed to soft global demand, rising inventories, and increased non-OPEC+ production [2]. - U.S. natural gas prices have rebounded sharply, averaging $4.15 per MMBtu compared to $2.13 a year ago, driven by colder weather and growing LNG exports [2]. Earnings Expectations - S&P 500 energy firms are projected to report a 12.9% year-over-year decline in earnings and a 0.3% dip in revenues, indicating ongoing pressure on profit margins [3][5]. - This decline is an improvement from the 22.4% earnings drop in Q4 2024, but still reflects significant challenges for oil-centric companies [3][6]. Company Performance Insights - Some energy companies are expected to perform better due to effective cost management, operational efficiency, and a focus on natural gas, which may lead to earnings surprises [4][7]. - Energy Transfer (ET) has an Earnings ESP of +9.23% and a Zacks Rank 3, with earnings scheduled for release on May 6 [11][12]. - MPLX LP also has a +9.23% Earnings ESP and a Zacks Rank 3, with earnings set to be released on May 6 [12]. - Pembina Pipeline (PBA) has an Earnings ESP of +2.93% and a Zacks Rank 3, with earnings scheduled for May 8 [13]. - ConocoPhillips (COP) has an Earnings ESP of +2.76% and a Zacks Rank 3, with earnings also scheduled for May 8 [14].

Core Viewpoint - Analysts forecast that Energy Transfer LP (ET) will report quarterly earnings of $0.33 per share, reflecting a year-over-year increase of 3.1%, with anticipated revenues of $23.37 billion, an increase of 8.1% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.8% higher over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Projections - Analysts project 'Midstream - Gathered volumes' to reach 20,742.84 BBtu/D, up from 19,922 BBtu/D year-over-year [5]. - The estimate for 'Midstream - NGLs produced' is 1,074.53 million barrels of oil per day, compared to 890 million barrels of oil per day in the same quarter last year [5]. - 'Midstream - Equity NGLs' is expected to be 61.29 million barrels of oil per day, up from 52 million barrels of oil per day in the same quarter of the previous year [6]. - 'NGL and Refined Products Transportation and Services - NGL and refined products terminal volumes' are projected at 1,435.33 million barrels of oil per day, compared to 1,395 million barrels of oil per day in the same quarter last year [7]. - 'NGL and Refined Products Transportation and Services - NGL fractionation volumes' are expected to reach 1,138.21 million barrels of oil per day, up from 1,053 million barrels of oil per day year-over-year [8]. - 'NGL and Refined Products Transportation and Services - Refined products transportation volumes' are projected at 574.88 million barrels of oil per day, slightly up from 573 million barrels of oil per day in the same quarter last year [9]. - 'NGL and Refined Products Transportation and Services - NGL transportation volumes' are expected to be 2,256.76 million barrels of oil per day, down from 2,087 million barrels of oil per day year-over-year [10]. Adjusted EBITDA Estimates - 'Adjusted EBITDA- Intrastate transportation and storage' is forecasted to reach $317.34 million, compared to $438 million in the same quarter last year [10]. - 'Adjusted EBITDA- Interstate transportation and storage' is expected to be $510.83 million, up from $483 million in the same quarter last year [11]. - 'Adjusted EBITDA- Crude oil transportation and services' is projected at $780.04 million, down from $848 million in the same quarter last year [11]. - 'Adjusted EBITDA- NGL and refined products transportation and services' is expected to reach $1.06 billion, compared to $989 million year-over-year [12]. - 'Adjusted EBITDA- Midstream' is projected at $770.07 million, up from $696 million in the same quarter last year [13]. Stock Performance - Energy Transfer LP shares have decreased by 6.8% in the past month, contrasting with the Zacks S&P 500 composite's decline of 0.5% [13].

Group 1 - Companies that combine high dividend yields with significant buyback programs are considered strong investment opportunities due to their substantial cash flow and solid balance sheets [1] - The investment strategy focuses on identifying profitable opportunities while minimizing costs, with an annual investment of over $100,000 in research [2] - The approach has garnered over 180 five-star reviews from members, indicating a positive reception and effectiveness of the strategies employed [2]

Core Insights - Energy Transfer (NYSE: ET) has experienced an 8% decline since the last coverage, aligning with the S&P 500 index performance [1] - The company is positioned at a strategic intersection of scale, strategy, and favorable industry trends, targeting a 5% growth in FY25 EBITDA and an ambitious $5 billion investment plan [1] Company Analysis - Leadership & Management: Energy Transfer has a proven track record in scaling businesses, demonstrating smart capital allocation and insider ownership, alongside consistent revenue growth and credible guidance [1] - Financial Health: The company showcases sustainable revenue growth with efficient cash flow, a strong balance sheet, and a long-term survival runway while avoiding excessive dilution and financial weaknesses [1] Market Positioning - Competitive Advantage: Energy Transfer benefits from a strong technology moat and first-mover advantage, with network effects driving exponential growth and market penetration in high-growth industries [1] Investment Strategy - Valuation & Risk/Reward: The company employs revenue multiples compared to peers and DCF modeling, ensuring downside protection while maximizing upside potential through institutional backing and market sentiment analysis [1] - Portfolio Construction: The investment strategy includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative investments (5-10%) in moonshot disruptors with massive potential [1]

Core Viewpoint - Energy Transfer LP (ET) units are currently undervalued compared to the Zacks Oil and Gas Production Pipeline – MLB industry, with an EV/EBITDA ratio of 10.25X, below the industry average of 11.67X, indicating a discount relative to peers [1][2]. Company Overview - Energy Transfer operates an extensive pipeline network exceeding 130,000 miles across 44 states in the U.S. and is actively pursuing growth opportunities to meet increasing power demands [8]. - The company has consistently executed one major accretive acquisition annually since 2021, enhancing its infrastructure, particularly in the Permian Basin [8]. Revenue Generation - Nearly 90% of Energy Transfer's revenues come from fee-based contracts related to transportation and storage services, ensuring stable cash flows and reducing exposure to commodity price fluctuations [9]. - The company has significant export capabilities, with natural gas liquids (NGL) and crude oil export capacities exceeding 1.1 million and 1.9 million barrels per day, respectively [10]. Financial Performance - Energy Transfer's current quarterly cash distribution rate is 32.75 cents per common unit, with management raising distribution rates 14 times in the past five years, resulting in a payout ratio of 101% [12]. - The Zacks Consensus Estimate indicates year-over-year earnings growth of 9.38% for 2025 and 0.39% for 2026 [15]. Management and Insider Ownership - Management and insiders own nearly 10% of Energy Transfer units, with significant purchases totaling over 44 million units worth $468 million from January 2021 to February 2025, indicating confidence in the company's future [13][14]. Market Position - Energy Transfer's asset base is strategically distributed across key U.S. production basins, providing strong earnings support through a diversified portfolio of oil and gas pipelines, gathering and processing facilities, and storage assets [11]. - The company is well-positioned to benefit from the rising production of oil, natural gas, and natural gas liquids in the U.S. [18].

Core Viewpoint - Energy Transfer is a leading midstream company that generates substantial cash flow through its diversified portfolio of energy infrastructure, making it an attractive investment for passive income seekers [1][2]. Financial Performance - The master limited partnership (MLP) generated $8.4 billion in cash last year, distributing $4.4 billion to investors, with a current distribution yield of 7.5% [2]. - The latest quarterly distribution payment is set at $0.3275 per unit, reflecting a more than 3% increase from the previous year [3]. - The company produced enough cash to cover its distribution by 1.9 times last year, with a 10% increase in distributable cash flow driven by acquisitions and organic growth [4]. Growth Strategy - Energy Transfer invested $3 billion in growth capital projects last year and plans to invest an additional $5 billion this year, targeting a 5% earnings growth [6][7]. - The company has ongoing expansion projects, including a large-scale LNG export terminal, and anticipates growth from increased demand in the Permian Basin and global LNG exports [8]. Acquisition Activity - Energy Transfer has a history of strategic acquisitions, including WTG Midstream and Crestwood Equity Partners, aimed at expanding its midstream system and enhancing earnings [9]. Investment Appeal - The company is characterized as an income-producing machine, providing a stable and growing cash distribution to investors, making it a suitable option for those interested in MLPs [10].

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial ."Dow Headed for Worst April Since 1932 as Investors Send 'No Confidence' Signal" is one of the headlines The Wall Street Journal went with earlier this week, after the market had, yet again, a horrendous day.Analyst’s Disclosure: I/we have a beneficial long position in the share ...

Group 1: Company Overview - Energy Transfer operates midstream businesses, primarily owning and operating pipelines, which provide reliable cash flows through the energy cycle [2] - The company also acts as the general partner to two other publicly traded master limited partnerships: Sunoco LP and USA Compression Partners, adding complexity and potential volatility to its operations [4] Group 2: Historical Performance - Energy Transfer cut its distribution by 50% in 2020 to strengthen its balance sheet during a challenging period for the energy industry, which negatively impacted unit holders [5][6] - The company's units experienced significant growth until around 2016, after which they have struggled to exceed $20 per unit, coinciding with weak oil prices [8] - A notable event in the company's history involved a failed acquisition of Williams, which raised concerns about potential debt and dividend cuts, leading to a loss of investor confidence [9] Group 3: Comparison with Peers - Other midstream energy companies, such as Enterprise Products Partners and Enbridge, have demonstrated more consistent dividend growth, with Enterprise increasing its distribution for 26 years and Enbridge for 30 years [10] - While Energy Transfer offers a higher distribution yield of 7.8%, the consistency and reliability of dividends from its peers may present a more attractive option for investors focused on stability [11]

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the y ...