Energy Transfer LP (ET) on Q1 2021 Results - Earnings Call Transcript
Operator: Greetings. Welcome to the Energy Transfer First Quarter Earnings Call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Tom Long. Mr. Long, you may begin. Tom Long: Thank you operator and good afternoon everyone and welcome to the Energy Transfer first quarter 2021 earnings call and thank you for joining us today. I'm also joined today by Mackie McCrea and other members of the senior management team, who are here to help answer your questions after our prepared remarks. Operator: Thank you. Our first question is from Gabe Moreen with Mizuho. Please proceed with your question. Gabe Moreen: Good afternoon, everyone. Maybe I can start off and congrats on a terrific quarter. Maybe if I can start off on the winter storm. Of the $2.4 billion you earned how much of that, I guess, at this point is cash in the door. And if you can also talk about how much you might have reserved against your stern warnings for potential litigation and maybe the time to resolve some of what’s still in dispute? Tom Long: Yes. Gabe, this is Tom Long. I would say of the $2.4 billion, you can say all of it is in the door. As highlighted in our prepared remarks, we paid down $3.7 billion in debt. So when you look at the cash, you can see that the collection efforts have gone very well. I will say, as far as any disputes that we may have, we feel like that we have recorded very strong numbers for the quarter, very solid numbers. And as far as reserves go, I would say, the numbers stand as presented for this quarter. Gabe Moreen: Thanks, Tom. And then maybe, if I can follow-up on the Permian Bridge project and how you think about your overall processing capacity within the Permian both Midland and Delaware, does this project let you defer additional processing capacity, if we're about to ramp up volume share again. So if you could just speak to kind of how that project fits within though the capacity out there? Mackie McCrea: Yes. This is Mackie, Gabe. Welcome back by the way. We were one of the biggest players and have been growing out there for years. I think we built 10 or 12, 200,000 day cryos and kind of what the pandemic did, it slowed down certain areas of the Permian basin and allowed us to kind of step back, see what our commitments were and take a real – more disciplined look or a discipline look at us to spending capital of kind of the path we've been on. And as we see the volume of grow more right now in the Midland basin and it has made more sense to not build another plant there and to bridge it over or move a rich gas over to our Delaware system where we do have some capacity. However, as time goes on, we will need another cryo at some point in the future, but this gives us time to evaluate it, to watch all the volumes return into fully load what we've already built before we start spending more capital. So it's a great project that our team came up with. We continue to look for ways to better utilize our pipeline assets. And this is a great example of that. Gabe Moreen: Great. Thanks, Mackie. Operator: Thank you. Our next question is from Shneur Gershuni with UBS. Please proceed with your question. Shneur Gershuni: Good afternoon, everyone. I was wondering, if we can start off with the guidance aspect. Clearly the natural gas segment did obviously very well. When I sort of think about it ex that the rest of the segments were obviously, are a lot of the segments were impacted by the storm. Yet you were able to increase your guidance or your legacy guidance by $100 million kind of on an extra storm basis. That sort of seems to suggest that you sort of expect the base business to do even better than the $100 million that you've shared with us kind of on an ongoing basis. Can you share with us the components of what's driving the improved outlook? Is it the exports that you prefaced in or talked about it in the prepared remarks? Or are there some other areas that we should be thinking about? Mackie McCrea: This is Mackie again, I'll start and Tom can follow-up, but we're couldn't be more pleased with our results and what these assets did, but more importantly, what our people did, but really where our excitement is the future. And a reflection of the volumes in the first quarter aren't where we're going. If you look at, and what you'll see here in the future is where the volumes are now in April and May, we're seeing significant growth. I'll give you an example that the word record falls into almost everything we're working on. I'll just walk through a few. For example, you heard earlier, we're at record volumes all time volumes in the Permian basin. We've never processed more gas than we are right now, the volumes, the residue volumes coming out of the basin that we move about 25% of is at all time highs. It's about 13 to 13.1 Bcf, which is right at or higher than the highest level we've ever had in the Permian basin. Somebody reported here recently, the Haynesville the most gas that's ever been produced out of Haynesville was produced in the month of April. And you just go on and on. If you look at Mexico, the record, we're almost 7 Bcf, about 30% of that volume moves through our assets. Our two 42-inch pipelines in West Texas are now moving 1.4 Bcf a day, where they've been significantly less than that in the past, those are much higher volumes than we expected and it kind of goes on and on. If you look at on our – even on our refined product, we – on our terminals, we now are at a higher levels than we've been since the end of 2019. Our throughput on our refined product pipelines are up about 70% from the lows of last summer. So there's a lot of aspects that go into this of why not. We're very bullish on not only this year, but for many years to come. And a few adders to that, and it was mentioned on the script is that we – the industry and the country, I think has recognized how valuable natural gas generation is. And more importantly, how important big inch pipe that can deliver large volumes to power plants and to cities and LDCs, and that can bring gas out of storage is really invaluable. And those assets have been way undervalued for the last, in our opinion, five, six, seven years. And that value is recognized big time in February. And so ironically, a lot, coincidentally, a lot of the contract are rolling off on our transport and our storage deals this year, even in the next month or two. And as you can imagine, the value of that service is going up. And so we'll able to extract a fair but market value for that service. And we're excited about that. And then also we're even seeing spreads, for example, in one of our tougher segments are crude segment. We're now seeing the prices at Nederland is $0.15 to $0.25 per barrel premiums above Houston and there's reason for that. And even St. James, which helps fill up our Bayou Bridge, a pipeline there's a higher demand there. So this is a long winded answer to your question, but the bottom line is there is so much upside that we really didn't see before this year started, that we're now seeing as we've come out of this storm, really across the board on all of our systems. Shneur Gershuni: That was super helpful and more than I expected, appreciate that. Maybe to continue on kind of the momentum and so forth, one of your peers noted on in their conference call that the storm impact caused a lot of customers to sort of rethink their services in general. And they're seeing some more requests or inquiries around potential contracting. We're contracting more business and so forth. Is that something that you're seeing as well too and something that you would look to capitalize on? Mackie McCrea: Yes. This is Mackie again. Yes, absolutely. As I mentioned, we believe that service, our transportation service and more importantly, our storage capacity has been undervalued for many years. So we have had many questions. We've either some RFP that have come out requesting more. We have some existing customers that have asked to double their storage capacity, they're asking for more withdrawal capability and we're certainly working with those and would love to contract up the majority of our storage at what we believe are fair market prices. And so we're pretty high on the value of those assets and look forward to some much improved margins around those. Shneur Gershuni: Perfect. Thank you very much for the color today and have a great afternoon. Operator: Thank you. Our next question is from Jeremy Tonet with JPMorgan. Please proceed with your question. Jeremy Tonet: Good afternoon. Tom Long: Good afternoon. Jeremy, how are you? Jeremy Tonet: Good. A lot of great commentary there, Tom. Thanks for that start off. Just want to pick up on carbon capture as you outlined there. A lot of thoughts there, and I was just wondering if you could help me think through, I guess, what could be possible here. And I think you noted that there could be a mix of kind of third-party capital as well here. And so just wondering, is this a situation where you could kind of take existing assets repurpose and contribute to like a JV or just trying to see, I guess how far along these opportunities are? And where you see the best place for storage here? Tom Mason: This is Tom Mason. It's an interesting area, of course, and we're spending a lot of time looking at opportunities. In Texas, with our gas processing plants, we have fair amount of CO2 that we're evaluating how to best capture that and try to work a structure where we can get the 45Q tax credits. And therefore get a joint venture, getting third-party money to actually pay for the capture equipment and the sequestration wells. So that's interesting, that the permitting takes a while, but we're doing some studies on the viability and location for those injection wells. And so that's a tax credit play in the Northeast. We're looking at Marcus Hook as a potential way of monetizing the CO2 capturing it but using it for industrial CO2 applications. And so that would not rely on the credits and we working through some feasibility studies on that. So we're may spending a lot of time on it. It looks like some real attractive opportunities to capture carbon and in and actually makes some money. Jeremy Tonet: Got it. That's a very helpful there. Thanks. And switching gears here and maybe this a little bit premature, but just wondering, given how profitable the quarter was, if you've had conversations with the agency? Or if you have any expectations of what this could do? If it could lead to some stabilization, improvement outlooks there, just kind of curious in general for your thoughts on that? Tom Long: We have had good conversations with the rating agencies. Clearly, before we come out with these earnings, we will always sit down and go over the results with them. And likewise, we'll start looking at longer-term forecast with them. And yes, we remain very bullish that we should continue to target to get to a higher rating. But first step obviously would be to get back to a stable outlook. So we're going to continue to work and communicate with them. We think we do have good relationships with them and are very optimistic. Jeremy Tonet: Got it. I'll leave it there. Thank you. Tom Long: Thank you. Operator: Thank you. Our next question is from Pearce Hammond with Simmons Energy. Please proceed with your question. Pearce Hammond: Yes, good afternoon, and thanks for taking my questions, and congrats on delivering a very strong first quarter. My question somewhat following up from the earlier question are pertains to repurposing assets, specifically Permian oil pipelines. And I'm just curious, how hard is it to repurpose an oil pipeline to carry natural gas or NGLs both from a commercial and a physical standpoint. And lastly, if industry participants do repurpose some assets, oil takeaway assets, what do you see as the impact to Energy Transfer? Mackie McCrea: Okay, this is Mackie again. If you kind of go back to our history, we've done a lot of what you just said. We converted an NGL line out in West Texas. I'm sorry, we converted a Transwestern line to NGL service years ago. We converted ETCOP which was a natural gas pipeline to crude service. We've converted a pipeline that runs across Texas that was actually in NGL service. And we converted that to a refined product. So it's not a very difficult process, depending on the product and what you're exchanging it with, or maybe more cleaning of all, the more pigs or whatever. But it's a fairly simple process. It's the asset that you might have to add on one end on the other, if you have to handle liquid, you may have to add some liquid handling facilities and things like that. But just the act of converting a line and put in different services is actually pretty simple from a physical perspective. From a commercial, it all comes down to utilization, the most profitable utilization of those assets. And right now we have plenty of capacity to move NGL barrels out of the Delaware out of New Mexico through an existing 24-inch another line. So this gives us the ability to convert this, however, in the future, as we think we'll see the NGL growth out there hit some of our expectations. We may be converting it back at some point, but this at least saves us a significant amount of capital. And we're able to move very quickly because this capital that we're spending on a Permian bridge, it's a very short term. We'll be seeing revenues on this by the latter part of the third quarter and early part of the fourth quarter. And then I didn't really follow your question about how it pertains to the industry on these conversions. Could you ask that again? Pearce Hammond: Yes. I just meant if some other pipelines were to convert or repurpose, how would that impact Energy Transfer? Mackie McCrea: Well, it depends on what they convert. If they're converting a line that competes with us to a different commodity, of course, that would benefit us. But yes, I think all companies right now in the midstream, especially in Texas, are looking at their assets. There are certain segments that are overbuilt. That's very evident. And so I think everybody's looking at that, but we pretty much focus on what we have the products that we're moving through our pipelines and how do we better utilize them to provide more revenue for our unit holders. Pearce Hammond: Thank you, Mackie, for the helpful answer. And that was my only question. So thank you. Mackie McCrea: You are welcome. Operator: Thank you. Our next question is from Becca Followill with U.S. Capital Advisors. Please proceed with your question. Becca Followill: Hi guys. Does the guidance that you've given – the updated guidance incorporate recovering all the sales of gas, even those that you haven't booked? In other words, could there be upside the guidance if you do resolve some of the credit disputes? Tom Long: Yes, there could. But we have scrubbed them really well, Becca, and feel like that where we are right now is pretty solid, but there is some upsides depending on how some disputes are resolved. Becca Followill: Thank you. And then the second question is how much of 2022 and 2023 CapEx that you've laid out is for energy transition opportunities? Mackie McCrea: This is Mackie again. At this point, not a whole lot as Tom mentioned, a lot of what he's working on his team are not high capital projects anyway. So we don't have a lot of that in there yet. We've certainly as we get closer to the finish line and to FID on some of these projects, which we're moving along very well on some of them, then we'll look at doing that. But remember in 2022 and 2023 on the ranges that we've given, there's some cushion that range. I mean, we know that there's – we're going to always be tied in well or doing things like Permian bridge, where we're saving capital and connecting different areas. So we have some room to add some capital without change in that outlook. Becca Followill: Great. Thank you. Tom Long: Becca, this is Tom. Let's clarify one part of the first part of your question real quick, the reserve that you're talking about or the upside, just to make sure if there's any additional settlements as we go out, the guidance we've given you is with everything that we've got right now, it's not baking in any additional type upsides to settlements. Becca Followill: Thanks. That's how we understood it. Thank you. Tom Long: Okay. Operator: Thank you. Our next question is from Michael Blum with Wells Fargo. Please proceed with your question. Michael Blum: Thanks. Good afternoon, everyone. I want to ask about Marcus Hook. I know in the past, you're talking – you discussed building that out kind of as a big hub export all kinds of stuff at the location. Can you just talk about where that stands today, both from an export capacity perspective, and then other things you were thinking about how's that been developing? Mackie McCrea: Yes. This is Mackie, Michael. You bet. As you can imagine, we are so excited to be at the tail end of a project that's gone on for awhile, but what an incredible franchise. I mean, there's really no way to get, are the most economic way to get barrels out of Western Pennsylvania and Eastern Ohio and West Virginia is the Mariner franchise. So as we complete the final phases of the Mariner projects, we couldn't be more excited. Every time we kind of complete a phase, we ramp up and we're loaded up. So we're moving as many barrels as we can through that pipeline today, with this next phase that we'll completing over the next 30, 45 days, we'll be able to ramp that up as well. And then as the final phase completed, hopefully by the end of the third quarter, we'll be in a really good situation to be able to fully utilize all of our cooling and storage and capabilities at Marcus Hook. As you probably know, we have a significant footprint there with just an incredible amount of capability of expanding. Since the pandemic is kind of we're coming to the tail end of the pandemic. We have increased our conversations around additional ethane opportunities and also the propane, butane growth we'll continue to improve from that terminal. So we're very excited on what we'll be bringing in the terminal and the projects, additional projects that will bring that some of the – we've talked about and some that we're working on. So similar to Nederland, it's an incredible terminal. We're the only company that has the ability to do that as you know out of the East Coast, off the East Coast and also out the Gulf and what a great asset to have, we're excited about it. Michael Blum: Great. And then on a related note, as you are getting closer to here with Mariner East to getting that to finish line, can you talk about where you stand from a contractual perspective? Do – how much has contracted today for how long, and do you think once you get the full system up and running and you'll be able to contract more of the pipeline and is that the strategy? Thanks. Mackie McCrea: Absolutely. The strategy we built a lot of pipeline capacity and once we complete in the third or fourth quarter, we will be fully utilizing all of our – very quickly ramping up and utilizing all of our chilling in our storage capacity at Marcus Hook. So we're looking at some fairly inexpensive expansions for some level of volumes to also increase our volumes to Marcus Hook and as alluded to you. Earlier we're also looking at some bigger expansions both around ethane and around propane and butane. So the pipelines give us tremendous opportunity to grow with very little capital just by adding pumps. So the additional capital will come with adding more chilling and more storage at Marcus Hook. Michael Blum: Thank you. Tom Long: Thank you. Operator: Our next question is from Christine Cho with Barclays. Please proceed with your question. Christine Cho: Thank you. I just want to talk about – you guys just had this big windfall and I recognize that you have a priority for debt pay down, but that has been accelerated. So how do you think about there could be some potential selling pressure in the upcoming quarters from current owners have enable. What are your thoughts of buying back stock to offset some of the dilution from deal and selling pressure? Tom Long: Yes. Christine, clearly that's something that's on the drawing board as well as distribution discussions. And you use the right term when you said accelerated. This has accelerated the plans that we've been laying out. So we're obviously very, very excited about it, and we will continue to evaluate that based upon market conditions. Christine Cho: And with respect to just the broader maybe capital allocation plan, when should we expect that? Is that something like we can hear 2022 or is it beyond that? Tom Long: Christine, we're looking at it more from a leverage metric, meaning getting to the 4.5 and that's the guidance that we've not put out there, but like I said in the prepared remarks, this accelerated by nearly a third of a turn getting to that – that much quicker. So we're very, very excited once again to be able to bounce the ball down the field, so to speak. Christine Cho: Great. And then maybe I'll just end with respect to – with respect to DAPL on the Supreme Court process. Can you just give us some color on what the next steps are here and the timing for each of those steps? And we've heard just a lot in the last couple of weeks about shippers having set up alternative takeaway to prepare for worst case scenario. And I recognize that scenario is kind of off the table, but would you say that, that has impacted volumes on the today? Mackie McCrea: This is Mackie. Was really impacted the volumes on DAPL has been growing. I mean, we were at 1.6 million barrels a day before the pandemic, and now we're down around 1.1 million, 1.2 million. So that's certainly has impacted to a certain degree, but we're seeing it come back and there's a lot of ducks that on the process being completed. And so there's also some comments from some of the bigger producers, they're going to start moving rigs, but the volume fluctuations on DAPL are more related to the lack of drilling up there in that area. Christine Cho: Got it. And the Supreme Court process? Tom Mason: This is Tom Mason. We made a filing to kind of put us in line to go to the Supreme Court if we need to. We don't really anticipate that we'll need to go that route. Judge Boasberg is going to rule on the motion for injunction sometime in the near future. We expect a favorable result from that and if that happens, then we continue down the environmental impact statement preparation process that the Corps – Army Corps is working through. And we just – kind of business as usual, we'll continue to operate the pipeline and continue to work through the EIS process. I don't – the Supreme Court route is probably not some of the top of our list. Christine Cho: Okay, great. Thank you. Operator: Thank you. Our next question is from Keith Stanley with Wolfe Research. Please proceed with your question. Keith Stanley: Hi, thank you. I guess first just a clarification on the storm, sorry to beat a dead horse, but the 2.4 billion storm benefit, is that the amount that's in the Q1 EBITDA figure? Or is it even more than that? Because I think, Tom you eluded to having $100 million of lingering costs over the balance of the year from the event? Tom Long: That is correct, Keith. It was more, what we baked in was the full year 2021 when we gave you the 2.4. Keith Stanley: Got it. Okay. Second question on Enable, I just noticed in the press release, I'm not sure if this is new or not. You say you expect FTC to grant unconditional clearance for the transaction. Is that just a reference to not expecting to have to sell assets or take other mitigation actions, just curious on the use of that term? Tom Mason: Yes, this is Tom Mason. That's exactly right. We're going to work through a process of providing additional information to the FTC, the second request, but you're exactly right, we don't expect a divestiture or consent decree that would limit some kind of operational issue. Keith Stanley: Got it. Thank you. Operator: Thank you. Our final question is from Jean Ann Salisbury with Bernstein. Please proceed with your question. Jean Ann Salisbury: Hi, congrats to you and your people on the ground on a very good quarter, just a couple for me. According to your 10-K, last year you had about $430 million in reductions on crude pipelines, I think primarily due to roll off some Permian Express. Could you comment on where we are and kind of this roll off life cycle, would you expect comparable rolls this year or is the worst behind us with that $430 million? Mackie McCrea: Yes, this is Mackie. Yes, we – actually, this year, I don't believe, we have any contracts rolling off. We might have one or two next year, but we certainly have embedded in any of our guidance of rolling those over where market prices are today. And we've got kind of a new team leading our crude group and we couldn't be more excited. Over the last three or four months, we've grown our volumes by 20%, 20% to 25% from where we've been. We're getting more creative. We're looking as far down as we can from Midland taking it all the way up to the – through Mid-Valley to the refineries. So there was a tremendous amount of upside on our crude business and any contracts that are rolling off we expect to extract better spreads than what we're seeing in the market today. In fact, I got a text right before this earnings call that we just closed the deal fairly long-term deal at spreads wider than where they are all today, because of the ability to offer – offer Nederland, offer St. James to offer storage and blending opportunities. And so that's how we're approaching this. We're not just looking at it at the spread from point A to point B. We're looking at as a full service from the wellhead to wherever the producer or the market wants to take the volumes. So we're excited about that. Jean Ann Salisbury: Great. That's super helpful. Thank you. And then it feels like the LNG market has inflected just even year-to-date. So just wondering if there has been any uptick in interest in Lake Charles? Tom Mason: Yes. This is Tom Mason again. There has been an uptick in prices both in Europe and in Asian. And so we are experiencing some increased interest and have a lot of productive discussions with customers all over the world. So it could be making – a good turn that get that project moving forward in a positive way. Jean Ann Salisbury: Great. Thanks. That's all for me. Operator: Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. I will now turn the call over to Tom Long for closing remarks. Tom Long: Once again, we really do appreciate all of you joining us today. As I mentioned, we're very excited about the performance of our existing asset base and all the projects we have coming online. And we look forward to talking with all of you with any follow-up questions you might have. Thank you all. Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Have a great day.
Energy Transfer LP (NYSE:ET) Maintains Strong Position in Energy Midstream Sector
- Citigroup maintains a "Buy" rating for Energy Transfer LP (NYSE:ET), indicating confidence in its future performance.
- The stock is currently trading about 10% below its January 2025 highs, presenting a potential buying opportunity.
- Energy Transfer benefits from the Trump administration's focus on fossil fuels and the rising demand for power, driven by energy-intensive AI workloads.
Energy Transfer LP, listed on the NYSE under the symbol ET, is a prominent player in the energy midstream sector. This sector involves the transportation, storage, and wholesale marketing of oil, natural gas, and natural gas liquids. Energy Transfer's extensive network and strong presence in the Permian Basin make it a key player in the industry. The company competes with other midstream giants like Kinder Morgan and Enterprise Products Partners.
On March 24, 2025, Citigroup maintained its "Buy" rating for Energy Transfer, with the stock priced at $18.88. This endorsement suggests confidence in the company's future performance. Currently, ET is trading about 10% below its January 2025 highs, indicating a potential buying opportunity as it remains under $20. The stock's recent price change of $0.28, a 1.51% increase, reflects positive market sentiment.
The energy midstream sector has shown resilience during recent market sell-offs, partly due to the Trump administration's focus on fossil fuels over green energy alternatives. This policy shift has created a favorable environment for companies like Energy Transfer. The rising demand for power, driven by energy-intensive AI workloads, further benefits the sector, providing growth opportunities for ET.
Energy Transfer's market capitalization is approximately $64.78 billion, with a trading volume of 12,520,806 shares. The stock has fluctuated between a low of $18.77 and a high of $19.11 today. Over the past year, ET has reached a high of $21.45 and a low of $14.90, showcasing its volatility and potential for investors seeking growth in the energy sector.
Energy Transfer LP (NYSE:ET) Maintains Strong Position in Energy Midstream Sector
- Citigroup maintains a "Buy" rating for Energy Transfer LP (NYSE:ET), indicating confidence in its future performance.
- The stock is currently trading about 10% below its January 2025 highs, presenting a potential buying opportunity.
- Energy Transfer benefits from the Trump administration's focus on fossil fuels and the rising demand for power, driven by energy-intensive AI workloads.
Energy Transfer LP, listed on the NYSE under the symbol ET, is a prominent player in the energy midstream sector. This sector involves the transportation, storage, and wholesale marketing of oil, natural gas, and natural gas liquids. Energy Transfer's extensive network and strong presence in the Permian Basin make it a key player in the industry. The company competes with other midstream giants like Kinder Morgan and Enterprise Products Partners.
On March 24, 2025, Citigroup maintained its "Buy" rating for Energy Transfer, with the stock priced at $18.88. This endorsement suggests confidence in the company's future performance. Currently, ET is trading about 10% below its January 2025 highs, indicating a potential buying opportunity as it remains under $20. The stock's recent price change of $0.28, a 1.51% increase, reflects positive market sentiment.
The energy midstream sector has shown resilience during recent market sell-offs, partly due to the Trump administration's focus on fossil fuels over green energy alternatives. This policy shift has created a favorable environment for companies like Energy Transfer. The rising demand for power, driven by energy-intensive AI workloads, further benefits the sector, providing growth opportunities for ET.
Energy Transfer's market capitalization is approximately $64.78 billion, with a trading volume of 12,520,806 shares. The stock has fluctuated between a low of $18.77 and a high of $19.11 today. Over the past year, ET has reached a high of $21.45 and a low of $14.90, showcasing its volatility and potential for investors seeking growth in the energy sector.
Energy Transfer LP (ET) Maintains Strong Position in Midstream Energy Sector
- Energy Transfer LP (NYSE:ET) has seen a 30% increase in stock price over the past year, supported by its comprehensive midstream system and strategic positioning.
- The company reported double-digit earnings and cash-flow growth last year, driven by acquisitions, organic expansion, and favorable market conditions.
- Despite a recent dip, Energy Transfer offers a 6.7% cash distribution yield, highlighting its strong income generation capabilities.
Energy Transfer LP, trading under the symbol ET on the NYSE, is a prominent player in the midstream energy sector. The company is involved in the transportation, storage, and upgrading of hydrocarbons across North America. With a strong presence in the Permian Basin, Energy Transfer leverages its extensive infrastructure to capitalize on arbitrage opportunities, such as transporting natural gas from low-cost regions to areas with better pricing.
On March 4, 2025, UBS maintained its "Buy" rating for ET, with the stock trading at approximately $18.28. Despite a recent 1.35% dip in its stock price, Energy Transfer has seen a significant 30% increase over the past year. This growth is supported by the company's comprehensive midstream system and strategic positioning, which provide numerous opportunities for revenue generation.
Energy Transfer's financial performance has been robust, with double-digit earnings and cash-flow growth last year. This success is attributed to acquisitions, organic expansion projects, and favorable market conditions. The company anticipates further growth, driven by an expected surge in power demand, as highlighted by Co-CEO Tom Long during the fourth-quarter conference call.
The company's income generation is notable, offering a 6.7% cash distribution yield. Despite a recent 5.8% decline in stock price over the past month, Energy Transfer remains a focus for investors, as noted by Zacks.com users. The stock's performance contrasts with the broader Zacks S&P 500 composite's 1.3% decrease and the Zacks Oil and Gas - Production Pipeline - MLB industry's slight loss of 0.1%.
Energy Transfer's market capitalization stands at approximately $63.96 billion, with a trading volume of 23.77 million shares. The stock has fluctuated between a low of $18.10 and a high of $18.85 during the day, with a 52-week high of $21.45 and a low of $14.87. Investors are closely monitoring these developments to make informed decisions about their investments in ET.
Energy Transfer LP (ET) Maintains Strong Position in Midstream Energy Sector
- Energy Transfer LP (NYSE:ET) has seen a 30% increase in stock price over the past year, supported by its comprehensive midstream system and strategic positioning.
- The company reported double-digit earnings and cash-flow growth last year, driven by acquisitions, organic expansion, and favorable market conditions.
- Despite a recent dip, Energy Transfer offers a 6.7% cash distribution yield, highlighting its strong income generation capabilities.
Energy Transfer LP, trading under the symbol ET on the NYSE, is a prominent player in the midstream energy sector. The company is involved in the transportation, storage, and upgrading of hydrocarbons across North America. With a strong presence in the Permian Basin, Energy Transfer leverages its extensive infrastructure to capitalize on arbitrage opportunities, such as transporting natural gas from low-cost regions to areas with better pricing.
On March 4, 2025, UBS maintained its "Buy" rating for ET, with the stock trading at approximately $18.28. Despite a recent 1.35% dip in its stock price, Energy Transfer has seen a significant 30% increase over the past year. This growth is supported by the company's comprehensive midstream system and strategic positioning, which provide numerous opportunities for revenue generation.
Energy Transfer's financial performance has been robust, with double-digit earnings and cash-flow growth last year. This success is attributed to acquisitions, organic expansion projects, and favorable market conditions. The company anticipates further growth, driven by an expected surge in power demand, as highlighted by Co-CEO Tom Long during the fourth-quarter conference call.
The company's income generation is notable, offering a 6.7% cash distribution yield. Despite a recent 5.8% decline in stock price over the past month, Energy Transfer remains a focus for investors, as noted by Zacks.com users. The stock's performance contrasts with the broader Zacks S&P 500 composite's 1.3% decrease and the Zacks Oil and Gas - Production Pipeline - MLB industry's slight loss of 0.1%.
Energy Transfer's market capitalization stands at approximately $63.96 billion, with a trading volume of 23.77 million shares. The stock has fluctuated between a low of $18.10 and a high of $18.85 during the day, with a 52-week high of $21.45 and a low of $14.87. Investors are closely monitoring these developments to make informed decisions about their investments in ET.
Energy Transfer (NYSE:ET) Maintains Strong Position in Energy Sector
- Energy Transfer has seen its units rise by over 40% since the start of 2023, with a high-yielding distribution of 6.7%.
- The company's adjusted EBITDA increased by 13% last year, reaching a record $15.5 billion.
- Despite a slight decrease in stock price, ET's current valuation and strong performance present a potential investment opportunity.
Energy Transfer (NYSE:ET) is a prominent player in the energy sector, known for its extensive network of pipelines and energy infrastructure. The company is involved in the transportation and storage of natural gas, crude oil, and other energy products. As of February 25, 2025, Citigroup has maintained a "Buy" rating for ET, with the stock priced at around $18.92, as highlighted by Benzinga.
Since the start of 2023, Energy Transfer has seen its units rise by over 40%, a remarkable achievement for a company with a high-yielding distribution of 6.7%. This growth is significant, especially considering ET's position as the third-best-performing midstream company since early 2023. Despite this, ET trades at the second-lowest valuation among its peers, making it an attractive investment opportunity.
Energy Transfer's financial performance has been robust, with a 13% increase in adjusted EBITDA last year, reaching a record $15.5 billion. This growth was driven by strategic acquisitions, organic expansion projects, and favorable market conditions. Although the company expects a moderation in its EBITDA growth rate, its current valuation and strong performance suggest potential for investors.
Currently, ET's stock price on the NYSE is $18.93, reflecting a slight decrease of $0.04 or approximately -0.21%. The stock has fluctuated between $18.25 and $18.96 today, with a 52-week high of $21.45 and a low of $14.52. Energy Transfer's market capitalization is approximately $64.95 billion, with a trading volume of 22.89 million shares.
Energy Transfer (NYSE:ET) Maintains Strong Position in Energy Sector
- Energy Transfer has seen its units rise by over 40% since the start of 2023, with a high-yielding distribution of 6.7%.
- The company's adjusted EBITDA increased by 13% last year, reaching a record $15.5 billion.
- Despite a slight decrease in stock price, ET's current valuation and strong performance present a potential investment opportunity.
Energy Transfer (NYSE:ET) is a prominent player in the energy sector, known for its extensive network of pipelines and energy infrastructure. The company is involved in the transportation and storage of natural gas, crude oil, and other energy products. As of February 25, 2025, Citigroup has maintained a "Buy" rating for ET, with the stock priced at around $18.92, as highlighted by Benzinga.
Since the start of 2023, Energy Transfer has seen its units rise by over 40%, a remarkable achievement for a company with a high-yielding distribution of 6.7%. This growth is significant, especially considering ET's position as the third-best-performing midstream company since early 2023. Despite this, ET trades at the second-lowest valuation among its peers, making it an attractive investment opportunity.
Energy Transfer's financial performance has been robust, with a 13% increase in adjusted EBITDA last year, reaching a record $15.5 billion. This growth was driven by strategic acquisitions, organic expansion projects, and favorable market conditions. Although the company expects a moderation in its EBITDA growth rate, its current valuation and strong performance suggest potential for investors.
Currently, ET's stock price on the NYSE is $18.93, reflecting a slight decrease of $0.04 or approximately -0.21%. The stock has fluctuated between $18.25 and $18.96 today, with a 52-week high of $21.45 and a low of $14.52. Energy Transfer's market capitalization is approximately $64.95 billion, with a trading volume of 22.89 million shares.
Energy Transfer’s Review Following The Acquisition of Enable Midstream
Analysts at RBC Capital updated their estimates and raised their price target on Energy Transfer LP (NYSE:ET) to $14 from $9, following the acquisition of Enable Midstream, completed on December 2, 2021.
The analysts view the acquisition favorably given the complementary asset bases, synergy potential, positive impact on credit metrics, and increase in fee-based cash flow that it provides.
The company anticipates the acquisition to generate $100 million of cost and efficiency synergies, which the analysts view as achievable given the complementary asset bases.
According to the analysts, the company offers investors a compelling value proposition, given its expansive asset footprint across the hydrocarbon value chain, strengthening the balance sheet, and free cash flow generation.
