Key Points Energy Transfer hasn't made an acquisition since the middle of 2024. The company recently stopped work on Lake Charles LNG after it was so close to approving the project. I predict both trends will change in 2026. 10 stocks we like better than Energy Transfer › Energy Transfer (NYSE: ET) is having a rather disappointing 2025. Units of the master limited partnership (MLP) are down over 15% year-to-date. That's due in part to a significant slowdown in its earnings growth rate. However, I ...

Core Viewpoint - The energy sector offers attractive income opportunities, with MPLX being a standout option for income investors due to its high yield and strong financial foundation [1][10]. Financial Performance - MPLX currently yields over 7%, significantly higher than the average energy stock yield of around 3% and the S&P 500's yield of 1.3% [1][10]. - The company generated nearly $1.5 billion in distributable cash flow in the first quarter, covering its distribution by 1.5 times [4]. - MPLX produced about $500 million in excess free cash flow during the same period, allowing it to cover organic capital spending comfortably [5]. Growth Potential - MPLX's adjusted EBITDA rose by 7% in the first quarter, while distributable cash flow increased by 8.5% [6]. - The company has achieved a nearly 7% compound annual growth rate in earnings and cash flow since 2021 [6]. - MPLX has increased its distribution at a 10.7% compound annual rate since 2021, including a 12.5% increase last year [7]. Future Investments - MPLX has several new investments planned, including the Traverse Pipeline, which is expected to enter commercial service in 2027, and multiple other projects with in-service dates through 2029 [8]. - The company anticipates mid-teen returns on these projects, supporting mid-single digit adjusted EBITDA growth [9]. - MPLX is actively using its strong balance sheet for acquisitions, including a $715 million purchase of the remaining 55% of the BANGL pipeline [9].