Is Energy Transfer Stock Going to $30?

Core Viewpoint - Energy Transfer's stock has surged over 13% this year, driven by growth reacceleration and rising oil prices, with potential for the unit price to reach $30 in the coming years [1][8] Financial Performance - Last year, Energy Transfer's adjusted EBITDA grew by only 3.2%, significantly slower than the 10% compound annual growth rate from 2020 to 2024, due to fewer growth catalysts and declining oil prices [3] - This year, the company anticipates adjusted earnings to rise by over 10%, benefiting from major expansion projects and rising oil prices [4] Growth Opportunities - Energy Transfer has a substantial backlog of expansion projects, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Transwestern Pipeline expansion, with secured projects expected to enter commercial service through 2030 [6] - The company has the financial flexibility to fund existing and new growth projects, including potential acquisitions, driven by increasing demand for natural gas [7] Valuation Potential - If Energy Transfer maintains a 10% annual earnings growth rate, its unit price could reach $30 in about five years, especially if its valuation multiple expands from its current low of less than nine times forward earnings [8]