Zacks.com users have recently been watching Energy Transfer LP (ET) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Given its asset base, Energy Transfer is well-positioned to benefit from increased natural gas demand coming from AI. Kinder Morgan has been one of the most vocal midstream companies on how AI power consumption could help its business.
In the most recent trading session, Energy Transfer LP (ET) closed at $15.30, indicating a -1.16% shift from the previous trading day.
Energy Transfer is a major player in the pipeline industry, with the largest pipeline capacity of any company. ET has shown strong growth this year and has potential for future growth through acquisitions. The recent acquisition of West Texas Gathering (WTG) assets is seen as a positive move for ET, supporting the monetization of the gassier Permian Basin.
Energy Transfer shows strong financial health compared to its peers, with a fair unit price estimated at $19. Energy Transfer's main focus in terms of capital spending has been on Midstream, NGL, and Refined Product Segments, which will lead to higher volumes and more cash inflow. My prediction for the period from 2020 to 1Q2024 has been close to the actual unit price to a great extent.
Energy Transfer LP offers a good entry point for income investors after the recent pullback. First quarter financial results show revenue and net income growth. Cash flow is strong and sufficient to support distributions to unitholders.
Energy Transfer common units remain a sound long-term investment due to consistently outstanding free cash flow, significant value creation by management, and relatively low valuation. Key metrics to evaluate Energy Transfer's performance include free cash flow yield, return-on-invested capital, and enterprise value-to-EBITDA valuation. In this article, I offer investors a 1Q2024 update on key financial and valuation metrics. These may provide you with a solid springboard for future common unit evaluation and monitoring.
Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Energy Transfer has been one of my top picks in the midstream space. Since my issuance of my bull thesis, ET outperformed its closest peers by a notable margin. This could raise the question of a potential overvaluation.
Energy Transfer LP reported strong Q1 2024 earnings, with double-digit growth in net income and adjusted EBITDA. The company is acquiring WTG Midstream for over $3 billion, expanding its natural gas pipeline and processing network. Energy Transfer aims to generate strong shareholder returns through unit buybacks and continued growth in dividend yield.
Energy Transfer is buying WTG Midstream in a highly accretive deal. The acquisition will enhance its position in the Permian Basin.
Shares of Energy Transfer L.P. edged higher Tuesday, after the natural gas transport and transmission company announced an agreement to buy WTG Midstream Holdings LLC in a cash-and-stock deal valued at about $3.25 billion from affiliates of Stonepeak, the Davis Estate and Diamondback Energy Inc.