ET Stock Outperforms Its Industry in 6 Months: Time to Buy or Hold?

Core Insights - Energy Transfer LP (ET) has outperformed the Zacks Oil and Gas - Production Pipeline - MLB industry, with a 1.3% increase in units over the past six months, while the industry declined by 3.6% [1][6] - The company is expanding its natural gas liquids (NGL) export facilities to meet rising global demand [2] - Energy Transfer's extensive midstream network, spanning nearly 140,000 miles, provides a competitive advantage in transporting various energy products [7] Performance Metrics - ET's processing capacity is approximately 12.9 billion cubic feet per day (Bcf/d), with nearly 4.9 Bcf/d in the Permian Basin [8] - The company has consistently grown through strategic acquisitions, enhancing its scale and efficiency [9] - ET's units trade at a trailing 12-month Enterprise Value-to-EBITDA ratio of 9.11x, below the industry average of 10.36x, indicating undervaluation [16] Financial Outlook - The Zacks Consensus Estimate predicts year-over-year earnings growth of 7.81% for 2025 and 10.67% for 2026 [12] - ET's current quarterly cash distribution rate is 33 cents per unit, with a history of 16 distribution increases over the past five years [15] - The company's return on equity (ROE) is 11.08%, lower than the industry average of 13.65% [19] Strategic Positioning - Energy Transfer's fee-based revenue model, which accounts for around 90% of earnings, provides stability against commodity price fluctuations [11] - The company is well-positioned to benefit from increasing oil, natural gas, and NGL production in the U.S. [21]