Energy Transfer LP (ET) Positioned for LNG Export Growth Despite Short-Term NGL Headwinds, RBC Capital Maintains Outperform

Core Viewpoint - Energy Transfer LP (NYSE:ET) is highlighted as one of the best stocks under $25 to buy, with RBC Capital maintaining an Outperform rating and a price target of $22, influenced by recent earnings and acquisitions [1]. Financial Performance - The company's adjusted EBITDA for the recent period was $3.84 billion, a decrease from $3.96 billion year-over-year [2]. - Distributable cash flow was reported at $1.90 billion, down from $1.99 billion in the same period last year, attributed to one-time events including a $43 million tax settlement [2]. Market Position and Outlook - RBC Capital believes Energy Transfer LP is well-positioned to benefit from increasing natural gas demand, particularly from data centers and LNG exports [3]. - However, the firm anticipates short-term challenges in Energy Transfer's NGL operations due to the expiration of key NGL pipeline contracts that will need to be renewed under potentially new conditions [3]. Company Overview - Energy Transfer LP is a leading midstream energy company based in Dallas, Texas, operating over 140,000 miles of pipelines across 44 states, focusing on the transportation and storage of natural gas, crude oil, and natural gas liquids (NGLs) [4].