Energy Transfer(US:ET) The Motley Fool·2026-01-24 17:16Core Viewpoint - Energy Transfer is positioned as a strong investment opportunity due to its high dividend yield of 7.5% and significant contracts with major technology companies, particularly in the context of increasing demand for natural gas from AI data centers [1][2][10]. Company Overview - Energy Transfer operates as a master limited partnership (MLP) and has a market capitalization of $62 billion [6][7]. - The current stock price is $17.99, with a day's range between $17.87 and $18.34 [6][7]. Financial Performance - The company has a gross margin of 12.85% and a dividend yield of 7.31% [7]. - Energy Transfer has contracted over 6 billion cubic feet (Bcf) per day of new pipeline capacity with demand-pull customers, projected to generate more than $25 billion in future revenue from long-term firm transportation fees [7]. Strategic Partnerships - Energy Transfer has secured multiple agreements with Oracle to supply natural gas to three data centers, delivering approximately 900,000 thousand cubic feet (Mcf) per day [4]. - A 20-year binding agreement with Entergy Louisiana will provide 250,000 metric million British thermal units (MMBtu) per day starting December 2028, supporting Meta Platforms' new data center [5]. Market Dynamics - The company is adapting to rising competition in the Permian natural gas liquids (NGL) market by considering the conversion of an existing NGL pipeline to natural gas service, which could potentially double revenue without incurring significant capital expenditures [8][9]. Future Outlook - Energy Transfer is well-positioned for growth due to the increasing demand for natural gas, particularly from AI data centers, and has secured major deals that provide visibility into future growth [10].