Energy Transfer LP (ET) on Q2 2022 Results - Earnings Call Transcript
Operator: Welcome to the Energy Transfer Q2 2022 Earnings Conference Call. My name is Darryl, and I will be your operator for today's call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn the call over to Tom Long, Energy Transfer's Co-CEO. Mr. Long, you may begin. Tom Long: Thank you, operator. Good afternoon, everyone, and welcome to the Energy Transfer second quarter 2022 earnings call. 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. Hopefully, you saw the press release we issued earlier this afternoon, as well the slides posted to our website. As a reminder, we will be making forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements are based upon our current beliefs as well as certain assumptions and information currently available to us and are discussed in more detail in our quarterly report on Form 10-Q for the quarter ended June 30, 2022, which we expect to be filed tomorrow, August 4. I'll also refer to adjusted EBITDA and distributable cash flow, or DCF, both of which are non-GAAP financial measures. You will find a reconciliation of our non-GAAP measures on our website. I'd like to start today by looking at some of our second quarter highlights. We were pleased to report another strong quarter, during which we generated adjusted EBITDA of $3.23 billion and DCF attributable to the partners of Energy Transfer, as adjusted, was $1.88 billion. This resulted in excess cash flow after distributions of approximately $1.17 billion. On an incurred basis, we had excess DCF of approximately $730 million after distributions of $710 million and growth capital of approximately $440 million. On July 26, we announced a quarterly distribution of $0.23 per common unit or $0.92 on an annualized basis, which represents a more than 50% increase over the second quarter of 2021. As a reminder, future increases to distribution level will be evaluated quarterly with the ultimate goal of returning distributions to the previous level of $0.305 per quarter or $1.22 on an annualized basis while balancing our leverage target, growth opportunities and unit buybacks. Operationally, our diverse asset base saw throughput increases across all of our segments as rig counts continue to improve across the U.S., and we saw record midstream volumes as well record throughput on our NGL transportation pipelines, Mont Belvieu fractionators and terminals. In addition, construction continues to progress on several of our growth projects, which I will provide more details on shortly. I'll start with a brief update on the sale of Energy Transfer Canada. In March of this year, we announced a definitive agreement to sell our 51% interest in Energy Transfer Canada for cash proceeds of approximately $270 million. In addition, the sale is expected to reduce our consolidated debt by approximately $550 million. This sale allows us to divest of these noncore assets at an attractive valuation and utilize the cash proceeds to further deleverage our balance sheet and redeploy capital within our U.S. footprint. The transaction remains on track, and we continue to expect it to close this month. This week, Energy Transfer signed an agreement to acquire Woodford Express, LLC, a Mid-Continent gas gathering and processing system for approximately $485 million. This bolt-on opportunity will provide a roughly 450 million cubic foot per day of cryogenic gas processing and treating capacity in Grady County, Oklahoma as well more than 200 miles of low and mid-pressure gathering lines in the heart of the SCOOP play. The assets are already connected to our inter and intrastate systems as well our gas gathering system. The system is supported by dedicated acreage with long-term predominantly fixed fee contracts with active proven producers. We're excited to have these strong assets, quality customer contracts and established operations to our footprint in the Mid-Continent, all at an attractive valuation that will be immediately accretive to Energy Transfer unitholders. This transaction is expected to close by the end of the third quarter of this year, subject to regulatory review and other customary closing conditions. Now I'll walk you through recent developments and other growth projects. Year-to-date, Lake Charles LNG has executed five LNG offtake agreements for an aggregate of 5.8 million tons per annum. The purchase price in all these agreements is indexed to the Henry Hub benchmark plus a fixed liquefaction charge and the LNG will be delivered on to customer vessels on an FOB basis. The agreements will become fully effective upon the satisfaction of the conditions precedent by Energy Transfer LNG, including reaching FID. We're also in active negotiations with a number of other high-quality customers as we expect to make announcements of additional offtake agreements in the weeks ahead. As we previously stated, we expect to finance a significant portion of the of the capital cost of this project by means sale of equity in the project to infrastructure funds and possibly to one or more industry participants in conjunction with LNG offtake agreements. We continue to work toward achieving FID for this project by the end of this year, and we expect that our anticipated announcements of additional long-term LNG offtake agreements over the next several weeks will keep us on track for meeting this objective. Upon completion of the LNG project, we expect to realize significant incremental cash flows from transportation of natural gas on our trunk line pipeline system and other energy transfer pipelines upstream from Lake Charles. Recent events in Europe highlight the importance of LNG from the United States, a country with abundant natural gas supply and government support for LNG exports. These events have caused companies around the world to place increased importance on long-term security of natural gas supply. We believe that our Lake Charles LNG project will be a significant factor in the long-term solutions for global energy needs. Looking at the Mariner East pipeline system, which is fully commissioned and capable of transporting more than 365,000 barrels per day, including ethylene. For the second quarter of 2022, NGL volumes through both the Mariner East pipeline system and Marcus Hook terminal reached new records. And in July, we set a monthly throughput record for the combined Mariner East pipes, and we continue to see strong utilization of these pipes. In addition, we recently completed work at the terminal to allow us to increase the ethane exports out of Marcus Hook, and we continue evaluate all options to achieve incremental ethane and LPG exports out of Marcus Hook until we complete an expansion of the terminal. At our expanded Nederland Terminal, NGL export volumes were very strong during the second quarter, including export volumes under our ethane export joint venture. We had a record in the second quarter for ethane exports and year-to-date, we have loaded nearly 18 million barrels of ethane out the facility. The second tranche of satellites contract went into effect on July 1, which doubles the volume commitments from the initial term and we loaded the first vessel under this demand base agreement in July. For full year 2022, we continue to expect to load more than 40 million barrels of ethane with that increasing to as high 60 million barrels for 2023. In total, we continue to export more NGLs than any other company or country, and our percentage of worldwide NGL exports remain at approximately 20% of the world market. We continue to see increase in NGL demand, both in the U.S. as well as from overseas customers seeking additional supply from the U.S., and we have sufficient commitments to move forward on an ethane export expansion. Even though we expect to expand our ethane export capabilities at both our Marcus Hook and Nederland terminals, these commitments provide us with the optionality of initially expanding at either terminal. In addition, due to the significant tightening and fractionation capacity, we recently resumed construction on Frac VIII, which was more than half funded when construction was paused in 2020. Frac VIII is expected to be in service in the third quarter of 2023 and will bring our total Mont Belvieu fractionation capacity to over 1.1 million barrels per day. In the second quarter, our Permian Basin plant inlet processing volumes were approximately 2.2 Bcf per day, which is a new record and due to significant producer demand and continued growth around the Permian Basin gathering and processing assets, we are adding additional capacity to meet increasing production from the basin. Construction of our new 200 million cubic foot per day GrayWolf processing plant in the Delaware Basin is underway. This plan is supported by new commitments and growth from existing customer contracts and remains on schedule to be in service by the end of this year. We are also moving forward with a second 200 million cubic foot per day processing plant in the Permian Basin. A portion of the growth capital associated with the Bear plant was included in our previous forecast, but we have accelerated some spend into 2022 to expedite the completion of this plant in order to meet growing demand. This plan is expected to be serviced in the second quarter of 2023. In addition, given the significant amount of demand we're seeing we are evaluating the necessity and potential timing of adding another processing plant in the region. Once in service, the volumes from tailgate of these plants will utilize our gas and NGL pipelines for takeaway, providing revenue streams for our intrastate and NGL segments on top of the incremental revenue for our midstream segment. In the meantime, we continue to heavily utilize the Permian be project to provide operational flexibility between our processing facilities in the Delaware and the Midland Basin. Crude terminal throughput increased nearly 20% over the second quarter of last year, driven by increased upstream pipeline throughput, a strategic petroleum reserve drawdown and additional market connectivity via the Ted Collins Link. At our Nederland Terminal, we have recently seen record crude volumes destined for the refinery and export markets. Overall, we expect to see exports continue to stay strong, largely due to the Ted Collins Link, which provides our systems with more market connectivity and access to deeper water as well as a quality management program, which ensures a higher-quality Midland WTI barrel as desired by our customers. We continue to make progress on the construction of the Gulf Run Pipeline, which is a 42-inch interstate natural gas pipeline with 1.65 Bcf per day of capacity. Gulf Run is backed by a 20-year commitment for 1.1 Bcf per day from Golden Pass LNG and will provide natural gas transportation between the Haynesville Shale and the Gulf Coast, connecting some of the most perfect natural gas producing regions in the U.S. with the LNG export market. Gulf Run remains on schedule to be complete by the end of this year. We recently completed a nonbinding open season Gulf Run due to growing producer demand. We were pleased with the results of the open season and customer discussions are ongoing, which will likely necessitate additional facilities beyond the initial design of 1.65 Bcf per day. Turning to the Warrior Pipeline Project, which is the most optimal solution for customers to transport gas out of the Permian in regard to timing, cost, flexibility and access premium markets. We are still evaluating the construction of this new intrastate pipeline from the Midland Basin to our extensive pipeline network south of the DFW area and remain optimistic that we can bring this project to FID. In the meantime, modernization and debottlenecking work on our Oasis pipeline continues, which will add an incremental 60 million cubic foot per day of much needed capacity out of the Permian Basin. This capacity is expected to be available by the end of this year. We also continue to evaluate opportunities in the petrochemical space, which would include developing a project along the Gulf Coast as well as potential M&A opportunities. We are in discussions with a number of high-quality customers as we work to secure long-term tolling type commitments prior to reaching FID. We also intend to have a significant partnership with one or more industry participants. If we are able to reach FID on this project, the ethylene and propylene production units would be synchronized into a world-class facility, providing unique feedstock and product flexibility. This would allow our customers to capitalize on access to the lowest cost feedstock through our comprehensive pipeline system as well as unparalleled access to downstream domestic and international markets through our pipelines, our underground storage facilities and our export terminals. Now for an update on our alternative energy activities. We are continuing to focus on efforts on reducing emissions across our pipeline we have established an internal task force to coordinate these efforts in conjunction with third-party consultants. We recently entered into a letter of intent with Capture Point Solutions to pursue the joint development of a carbon capture and sequestration hub in Louisiana. This project would involve the installation of carbon capture equipment and several natural gas treating plants in the Haynesville area and the transport by pipeline of CO2 to a sequestration site that Capture Point is developing. Preliminary cost estimates as well as projections of cash flow and tax credits indicate that this project will generate an attractive financial return. We continue to pursue a number of projects related to carbon capture, including sequestration, enhanced oil recovery and utilization projects. We are in active discussions with several developers of CO2 sequestration sites in close proximity to our existing facilities in other regions as well our proposed Lake Charles LNG liquefaction facility. That would be good candidates for carbon capture and sequestration. Now I'll take a closer look at our second quarter results. Consolidated adjusted EBITDA was $3.23 billion compared to $2.62 billion for the second quarter 2021. DCF tripled to the partners, as adjusted, was $1.88 billion for the second quarter of 2022 compared to $1.39 billion for the second quarter of 2021. Results for the second quarter included higher transportation volumes across all of our segments as well as a full quarter contribution from the Enable assets that were acquired in December of 2021. On July 26, we announced a quarterly cash distribution of $0.23 per common unit or $0.92 on an annualized basis. This distribution will be paid on August 19 to unitholders of record as of the close business on August 8. This distribution represents a more than 50% increase over the second quarter of 2021. Turning to our results by segment, and starting with NGL and refined products. Adjusted EBITDA was $763 million compared to $736 million for the same period last year. This was primarily due to higher fractionation margin higher transportation margin as well higher terminal service margin related to increased throughput at our Nederland and Marcus Hook terminals in the second quarter of 2022. NGL transportation volumes on our wholly owned and joint venture pipelines increased to a record 1.9 million barrels per day compared to 1.7 million barrels per day for the same period last year. This increase was primarily due to a ramp-up in volumes through our propane and ethane export pipelines into our Nederland Terminal and higher volumes from the Permian and Eagle Ford regions as well as record volumes on our Mariner East pipeline. And our average fractionated volumes were also a record at 938,000 barrels per day compared to 833,000 barrels per day the second quarter of 2021. For our crude oil segment, adjusted EBITDA was $562 million compared to $484 million for the same period last year. This was primarily due to improved performance Bakken pipeline despite significant weather impacts during the quarter, increased throughput at our Gulf Coast terminals as well as the addition of the Enable assets in December of 2021. Crude oil transportation volumes increased to 4.3 million barrels per day compared to 4 million barrels per day for the same period last year, driven by higher crude oil prices and strong refinery demand. For midstream, adjusted EBITDA was $903 million compared to $477 million for the second quarter of 2021. This was primarily due to the acquisition of Enable assets in December and an increase related to favorable NGL and natural gas prices as well as significant increases throughout the majority of our operating regions. Gathered gas volumes were 18.3 million MMBtus per day compared to 13.1 million MMBtus per day for the same period last year due to the addition of the Enable assets, increased production in South Texas in the Northeast as well as additional gathering capacity from the Permian Bridge pipeline in West Texas. Permian Basin volumes continue to be strong, and Permian Basin inlet volumes remained at or near record highs. We are utilizing the Permian Bridge daily to optimize our available processing capacity as well as increasing our processing capacity in the area to accommodate incremental demand we are seeing. In our Interstate segment, adjusted EBITDA was $397 million compared to $331 million for the second quarter of 2021. During the quarter, we benefited from the addition of the Enable assets as well as increased rates and higher utilization on the Transwestern Tiger, Rover and Frontline systems due to more favorable market conditions volume growth. We continue to see heavy utilization on many of our interstate pipelines, including Tiger, FGT, Stash and Rover. And for the end of the second quarter, basis spreads on our interstate pipelines began to widen creating stronger demand for capacity across our interstate network, and we expect that to continue throughout the rest of this year. And for our Interstate segment, adjusted EBITDA was $218 million compared to $224 million in the second quarter of last year. Absent benefits from Winter Storm Uri in both quarters, this segment would have been up approximately $30 million due to an increase in retained fuels related to higher natural gas prices. This was partially offset by lower storage optimization opportunities. Utilization of our HPL system remained strong due to increased demand from gas takeaway and our rig pipeline system continues to flow at or near capacity due to increased activity in the Haynesville. Now turning to our 2022 adjusted EBITDA guidance. Given our strong performance in the second quarter as well as continued demand for our products, as we move through the rest of the year, we now expect adjusted EBITDA to be between $12.6 billion to $12.8 billion. This is up compared to our previous guidance of $12.2 billion to $12.6 billion. And moving to a growth capital update. For the six months ended June 30, 2022, Energy Transfer spent approximately $825 million on organic growth projects, primarily in the midstream, Interstate and NGL and Refined Products segment, excluding Sun and USA Compression CapEx. For full year 2022, we continue to expect growth capital expenditures to be between $1.8 billion to $2.1 billion, and we will likely be near the high end of that range as we have added new projects related to incremental demand that we are now seeing. These projects include the addition of capital related to frac A accelerated spend on new processing facilities in the Permian and a new connection for Gulf Run, which are all offset by deferral of some spend to 2023 based upon project timing. Now looking briefly at our liquidity position. As of June 30, 2022, total available liquidity under our revolving credit facility was approximately $2.44 billion. We continue to expect to generate a significant amount of cash flow this year, which will be strategically allocated in a manner that best positions us to continue to improve our leverage, invest in high-returning growth projects, return value to our unitholders. And we expect to continue to pay down debt throughout this year and beyond with excess cash flow from operations. We also expect to reach our leverage target range by the end of this year and going forward, expect our strong coverage and balance sheet strength to allow us to further prioritize growth within our capital allocation strategy. Our strong second quarter and performance was driven by significant volume growth across all of our segments as a result of improved production and increased demand, which we expect to continue throughout 2022. In addition, the Enable assets acquired at the end of 2021 continued to outperform our internal budget during the second quarter. We expect production improvements, market conditions and strong domestic and international demand for our products to positively impact all of our segments for the remainder of this year. We are pleased with the progress we have made toward reaching our leverage target range we remain focused on improving our financial flexibility and paying down debt in order to further strengthen our balance sheet. In addition, we will continue to evaluate returning additional capital to our equity unitholders through distribution growth on a quarterly basis. We remain bullish about the future of our industry and the growing worldwide demand for natural gas and natural gas liquids. As we look for additional ways to address the existing and new demand for our products, we will continue to evaluate and pursue strategic growth projects that enhance our existing asset base and generate attractive returns as part of the capital allocation strategy. Operator, please open the line up for our first question. Operator: [Operator Instructions] Our first question comes from Jeremy Tonet from JPMorgan. Go ahead, Jeremy. Operator: Our next question comes from Chase Mulvehill from Bank of America. Go ahead, Chase. Operator: And our next question comes from Colton Bean from Tudor, Pickering, Holt and Company. Go ahead, Colton. Operator: And our next question comes from Brian Reynolds from UBS. Go ahead Brian. Operator: And our next question comes from Michael Blum from Wells Fargo. Go ahead Michael. Operator: Our next question comes from Keith Stanley from Wolfe Research. Go ahead Keith. Operator: And our next question comes from Jean Ann Salisbury from Bernstein. Operator: And our next question comes from Michael Cusimano from Pickering Energy Partners. Go ahead, Michael. Operator: And our final question comes from Michael Lapides from Goldman Sachs. Go ahead, Michael. Operator: And we have no further questions at this time. I'd like to turn the call back to Tom Long for closing comments. Mr. Long, you may proceed. Tom Long: Once again, thank all of you for joining us today. We really are excited to have the opportunity to talk to you about another great quarter and clearly a great year that we're seeing. Thank you for your support, we look forward to talking you in the near future. Operator: Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for participating. You may now disconnect.
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.
