Energy Transfer Is Cashing In on a Powerful New Growth Opportunity

Core Viewpoint - Energy Transfer is positioned for significant growth in the natural gas sector, driven by increasing electricity demand and its extensive infrastructure [2][3][6]. Growth Prospects - The company delivered double-digit earnings and cash-flow growth last year, supported by acquisitions and organic expansion [2]. - U.S. power demand is expected to grow by 55% over the next 20 years, significantly outpacing the previous two decades' growth of around 9% [3]. Market Demand - The anticipated surge in power demand will drive the need for various power sources, particularly natural gas [4]. - Total U.S. natural gas demand was approximately 110 Bcf/d last year, with future demand potentially exceeding 10 to 12 Bcf/d [5][4]. Infrastructure Advantage - Energy Transfer operates over 105,000 miles of natural gas pipelines and has a storage capacity of 236 Bcf, positioning it well to meet rising demand [6]. - The company has received requests for connections to around 62 new power plants and over 70 prospective data centers [7]. Strategic Initiatives - A long-term agreement with CloudBurst data centers to supply natural gas for an AI-focused data center in Texas marks the beginning of potential commercial agreements [7][8]. - The company plans to invest $5 billion in growth projects this year, a $2 billion increase from the previous year, to support future growth [9].