Where Will Energy Transfer Be in 3 Years?

Core Viewpoint - Energy Transfer is positioned for significant growth through a combination of organic expansion projects and strategic acquisitions, which have historically enhanced its cash flow and distribution yield, currently at nearly 7% [1][3][11] Growth Strategy - The company plans to invest $5 billion in growth capital projects this year, up from$3 billion last year, indicating a strong commitment to organic growth [6] - Energy Transfer has several expansion projects underway, including the $2.7 billion Hugh Brinson natural gas pipeline, which is expected to enhance its capacity significantly [7] Acquisition Strategy - Acquisitions have been a key driver of growth, with annual adjusted EBITDA increasing from$13.1 billion in 2022 to $15.5 billion in 2023, representing an over 18$0.04 per unit to its distributable cash flow this year, increasing to $0.07 per unit by 2027 [4] - The company expects to see the majority of earnings growth from its ongoing projects ramping up in 2026 and 2027 [7][10] Market Trends - The company identifies three key themes for future growth: strong production growth in the Permian Basin, increasing demand for natural gas power, and rising global demand for natural gas liquids [9] - These trends are expected to facilitate the acquisition of new expansion projects over the next three years [9] Distribution Growth - Energy Transfer plans to increase its distribution payout by 3% to 5% annually, providing investors with a growing stream of passive income [11]