Where Will Energy Transfer (ET) Stock Be in 3 Years?

Core Insights - Energy Transfer has experienced a stock rally of 42% over the past three years, with a total return of 78% when including reinvested distributions [1] Company Overview - Energy Transfer operates over 140,000 miles of pipeline across 44 states, providing delivery, storage, and terminalizing services for natural gas, LNG, NGLs, crude oil, and other refined products [2] - The company charges "tolls" to upstream extraction and downstream refining companies for using its pipelines, which insulates its business model from volatile commodity prices [3] Business Structure - Energy Transfer is structured as a tax-efficient master limited partnership (MLP), combining a return of capital and ordinary income to fund its distributions [4] - A fluctuating percentage of its high forward yield of 7.3% comes from investors' own cash, while its adjusted distributable cash flow (DCF) has remained comfortably below 100% in recent years [5] Growth Catalysts and Challenges - The company has added over 50,000 miles of pipelines through acquisitions in recent years and may pursue further acquisitions in the future [6] - Expansion in the Permian Basin and the completion of the Lake Charles LNG project in Louisiana are expected to drive organic growth [7] - Favorable policies from the Trump Administration towards fossil fuels and lower interest rates may provide additional support for the company's growth [7]