Performance Overview - Energy Transfer's units surged 42% in 2024, significantly outperforming the S&P 500's 23% return [1] - Including cash distributions and reinvestment, Energy Transfer's total return reached almost 54%, compared to the S&P 500's 25% total return [1] Growth Drivers - The company closed two acquisitions in 2023 (Lotus Midstream and Crestwood Equity Partners), contributing to its growth [2] - Energy Transfer acquired WTG Midstream in July 2024, expected to increase distributable cash flow by $0.04 per unit in 2024 and $0.07 by 2027 [3] - The $2.7 billion Hugh Brinson Pipeline, set to come online by the end of 2026, will provide additional gas takeaway capacity in the Permian Basin [3] Financial Performance - Record volumes across several areas during the third quarter of 2024 [4] - The company is on track to deliver 12% earnings growth at the midpoint of its guidance range [4] - Distribution increased by 3.2% year-over-year in the third quarter of 2024 [4] Future Prospects - Energy Transfer secured Chevron as a customer for its proposed Lake Charles LNG project, bringing the long-delayed export terminal closer to reality [5] - AI data centers are emerging as a potential growth catalyst, driving the expansion of the natural gas pipeline network to meet increased electricity demand [5] - The company expects to continue securing new expansion projects and has additional upside catalysts, including potential new projects and a unit repurchase program [6] Momentum for 2025 - Energy Transfer enters 2025 with strong momentum, supported by the accretive acquisition of WTG Midstream and several completed expansion projects [6] - Additional expansion projects are expected to enter service by mid-2025, providing incremental income [6] - The company trades at a bottom-of-the-barrel valuation compared to peers, yielding 6.5% even after last year's rally [6]

Dividend and Distribution - Energy Transfer pays a quarterly distribution of $0 3225, resulting in a forward yield of 6 5% [4] - The distribution is well covered by distributable cash flow (DCF), with a coverage ratio of 1 8 times last quarter [4] - The company plans to grow its distribution by 3% to 5% annually and aims to buy back stock once its leverage target is achieved [5] Growth Opportunities - Energy Transfer owns one of the largest integrated midstream systems in the U S, with significant expansion opportunities [6] - The company forecasts spending between $2 8 billion and $3 billion on growth projects in 2024, with potential to add $375 million to $500 million in annual EBITDA [6][7] - Increased power needs from artificial intelligence have led to inbound interest from power plants and data centers, with a new $2 7 billion natural gas pipeline project announced [8] Valuation - Energy Transfer trades at an EV/EBITDA ratio of 8 4 times 2024 analyst estimates, one of the lowest among midstream MLPs [12] - Midstream MLPs historically traded at an average EV/EBITDA multiple of 13 7 between 2011 and 2016, indicating Energy Transfer is below historical levels [13] - Analysts project the company to generate $16 9 billion in EBITDA by 2026, up from $15 9 billion in 2024 [13]

Investment Strategy - Focuses on identifying growth investing opportunities with attractive risk/reward upside potential [2] - Combines sharp price action analysis with fundamentals investing [2] - Avoids overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities [2] Investment Group - Runs the investing group Ultimate Growth Investing, specializing in high-potential opportunities across various sectors [3] - Focuses on ideas with strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook [3] - Targets growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations [3] Analyst Recognition - Recognized by TipRanks as a Top Analyst [1] - Recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP [1] - Demonstrates outperformance with picks that generate alpha well above the S&P 500 [1]

Energy Transfer LP (NYSE: ET) Analysis - The author has been a steadfast bull on Energy Transfer LP (NYSE: ET) stock for the past ~2 years [1] - The author's core style is to provide actionable and unambiguous investment ideas based on independent research [1] - The author's service, Envision Early Retirement, provides at least 1x in-depth articles per week on such investment ideas [1] Performance of Author's Investment Service - The author's service has helped members not only beat the S&P 500 but also avoid heavy drawdowns despite extreme volatilities in both the equity and bond markets [2] - The service offers a 100% Risk-Free trial for potential members to evaluate its proven method [2]

Energy Transfer's Investment Performance - Energy Transfer's current distribution yield is over 6.5%, significantly higher than the S&P 500's dividend yield of 1.2% [1] - The MLP's unit price has increased from $13.67 to $19.60 over the past five years, representing a 45% gain or 7.7% annualized return [2] - A $1,000 investment in Energy Transfer five years ago would have grown to $1,448 based on unit price appreciation alone [2] Distribution Impact on Total Returns - Energy Transfer cut its distribution by 50% during the pandemic but has since rebuilt it to exceed pre-pandemic levels [3] - Including distribution income and assuming dividend reinvestment, Energy Transfer's total return increases to 129.6% (18.1% annualized) [4] - A $1,000 investment with reinvested distributions would have grown to $2,296, outperforming the S&P 500's $1,988 return under similar conditions [5] Future Growth Potential - Energy Transfer plans to grow its distribution payout by 3% to 5% annually, potentially supporting continued market-beating returns [6] - The MLP's high-yielding distribution significantly impacts its total returns, contributing to its strong performance relative to the broader market [6]

Investment Strategy - The investment service focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The approach emphasizes buying cashflow-producing assets rather than chasing growth stocks with high valuations, targeting long-term income investors [2] Analyst Background - The analyst has over 14 years of investment experience and holds an MBA in Finance, with a focus on defensive stocks and medium- to long-term investment horizons [2] Portfolio Holdings - The analyst holds beneficial long positions in ET and LADR through stock ownership, options, or other derivatives [3]

Energy Transfer (ET 0.10%) has had a strong 2024, with its stock price up about 40% as of this writing. At the same time, the master limited partnership (MLP) pays an attractive distribution that is good for a forward yield of 6.7%.With the stock having more than tripled in value since the end of 2020, the question becomes, is it a buy, sell, or hold going forward? Let's look at the buy and sell cases to decide.The buy case for Energy TransferEnergy Transfer has created one of the largest integrated midstre ...

Units of Energy Transfer LP (ET) have rallied 23.4% year to date compared with its industry’s growth of 19%. The oil and gas midstream firm owns a wide network of pipelines across the United States and is pursuing opportunities to serve growing power loads from new demand centers across its network.Stay up-to-date with all quarterly releases: See Zacks Earnings CalendarThe firm also exports Liquefied petroleum gas and has natural gas liquids (NGL) export facilities to cater to the rising demand for NGL glob ...

Energy Transfer (ET 3.23%) has a very attractive yield at 6.9%. That will draw the eyes of most income investors today, noting that the S&P 500 index has a miserly yield of just 1.2% or so. Even the average energy stock's yield is far lower, at around 3.1%.Before you buy Energy Transfer thinking that it will set you up with a lifetime of income, though, you'll want to consider some facts about the past.Energy Transfer's business looks attractiveEnergy Transfer is what is known as a midstream company. It own ...

Energy Transfer (ET -0.32%) is popular among income-seeking investors. The master limited partnership (MLP) offers a monster distribution that currently yields 7%. That's well above the S&P 500's dividend yield (1.2%). Further, the company plans to steadily increase its payment each quarter, targeting yearly growth at a 3% to 5% annual rate. As good as Energy Transfer's income is these days, fellow MLP Western Midstream Partners (WES 0.08%) offers an even bigger yield at 9%. Here's a closer look at this hig ...