Energy Transfer(ET) The Motley Fool·2025-01-14 13:15Performance 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 0.07 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]