Should You Buy Energy Transfer Stock Now That It's Over $20?

Energy Transfer's Performance and Growth - Energy Transfer's units soared 42% last year and continued to rally in early 2024, pushing its unit price above $20 [1] - The company expected to generate between$15.3 billion and $15.5 billion of adjusted EBITDA in 2024, a 12$1.5 billion), Crestwood Equity Partners ($7.1 billion), and WTG Midstream ($3.1 billion) [3] - The company reported volume records across several categories in the third quarter [3] Expansion Projects and Market Opportunities - Energy Transfer secured several new organic expansion projects, including the $2.7 billion Hugh Brinson Pipeline, which will provide additional natural gas transportation capacity from the Permian Basin to the Gulf Coast [4] - The company has several potential projects under development to support growing natural gas demand, driven by AI data centers and other factors [4] - Forecasters expect U S electricity demand to accelerate over the coming decades, powered by AI data centers, electric vehicles, and onshoring of manufacturing, providing multiple opportunities for Energy Transfer to expand its natural gas pipeline system [9] Valuation and Financial Profile - Energy Transfer trades at a bottom-of-the-barrel valuation compared to its peers in the midstream sector, with a high distribution yield of 6 4$20 per unit, offering a high-yielding distribution and a still-cheap valuation [11]