Energy Transfer (ET -0.89%) is known more as an income investment. With a distribution yield currently hovering around 6.5%, that makes sense.
Energy Transfer L.P. (NYSE: ET) is rewarding its shareholders once again with a quarterly dividend of $0.325, payable on Wednesday, Feb.
Energy Transfer is undervalued compared to peers, with significant growth potential due to its extensive energy infrastructure and increasing demand from data centers. ET has shown substantial financial growth, with a 41.14% increase in gross profit and 89.26% growth in EBITDA over the past 5 years. Despite risks like debt and market fluctuations, ET's strategic acquisitions and favorable political climate position it for continued appreciation in 2025.
Energy Transfer (ET 1.55%) has never been shy about pursuing growth when opportunities come along, and that's what it's expecting in 2025. When the pipeline company reported fourth-quarter earnings this past week, the big news was that it's looking for supercharged growth given the number of strong opportunities it is seeing, including the growing energy needs stemming from artificial intelligence (AI).
Energy Transfer LP reported strong Q4 2024 earnings with EBITDA up 8% YOY and issued robust 2025 guidance, reflecting aggressive acquisition strategies. New growth initiatives include a low-capex deal with CloudBurst Data Centers and long-term contracts with Chevron, signaling confidence in future stability. ET delivered over 50% total return in 2024, with a reasonable valuation and tax-efficient yield, making it a compelling long-term holding.
Energy Transfer (ET 0.86%) is coming off a record-breaking year. The master limited partnership (MLP) set volume records across several product categories last year.
Energy Transfer missed expectations on Q4 FY24 EBITDA. But volumes are growing well and are likely to continue doing so as expansion capex spending ramps up at attractive returns. I estimate that ET's deal with CloudBurst Data Centers can boost TTM EBITDA by up to 4.24%. And the company is in talks with dozens of similar opportunities. ET stock trades at a 16.1% discount to peers, with rising EBITDA expectations and bullish technicals, suggesting continued outperformance against the S&P 500.
Energy Transfer is a qualitative MLP with a well-covered distribution yield approaching 7%. The midstream operator is capitalizing on a constructive regulatory environment, with $5 billion in growth capex planned for 2025. Energy Transfer enjoys BBB (and equivalent) credit ratings across the board from S&P, Fitch, and Moody's.
The energy sector is often out of favor among many investors, but suddenly comes into focus at certain moments. Left for dead during the pandemic, energy prices spiked in 2022 following the pandemic reopening and Russia's invasion of Ukraine, before subsiding.
Energy Transfer LP reported solid quarterly earnings, continues to grow, benefits from AI tailwinds, and offers an attractive distribution yield, despite not trading at an expensive valuation. I remain bullish on Energy Transfer LP, which has returned 48% including distributions over the past year, outperforming the broad market's 21% return. Despite missing consensus EPS estimates, Energy Transfer's strong EBITDA and cash flow generation are more critical, with depreciation charges impacting net profits but not cash flows.
Energy Transfer (ET -0.81%) recently closed the books on 2024 by reporting its fourth-quarter and full-year results. The master limited partnership (MLP) set several records.
The digital world is rapidly expanding, driving advancements in cloud computing and artificial intelligence (AI). The rapid growth of data centers has resulted in a surging demand for energy, a crucial resource for their operations.