ET's fourth-quarter earnings and revenues decline year over year. Total costs and expenses also decrease during the period.
Energy Transfer LP delivered a robust performance since my November 2024 call, returning nearly 20% to investors. ET's 6.5% distribution yield is rock-solid, supported by impressive financial performance, including record adjusted EBITDA levels and strong cash flow generating capacity. The company's ambitious $5 billion growth projects and favorable macroeconomic trends position it well for future expansion, particularly in the midstream industry.
Energy Transfer's units are down 3% despite strong FY24 performance, mainly due to concerns over a $5 billion growth CapEx guide. The company's recent M&A, while strategically sound, was a mixed bag as it was primarily funded through issuing new ET units, which, I felt, were undervalued themselves. The FY25 EBITDA guidance increase of $600 million-$1 billion is very strong, as most of the increase is organic and shows ET's strategy is working.
Energy Transfer LP Common Units (NYSE:ET ) Q4 2024 Earnings Conference Call February 11, 2025 4:30 PM ET Company Participants Tom Long - Co-Chief Executive Officer Mackie McCrea - Co-Chief Executive Officer Dylan Bramhall - Group Chief Financial Officer Conference Call Participants Theresa Chen - Barclays Keith Stanley - Wolfe Research Jeremy Tonet - JPMorgan Manav Gupta - Credit Suisse Spiro Dounis - Citi Jean Ann Salisbury - Bank of America Michael Blum - Wells Fargo Gabe Moreen - Mizuho Jackie Koletas - Goldman Sachs Operator Good day, and welcome to the Energy Transfer Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
Artificial intelligence (AI) requires a tremendous amount of electricity to power the specialized chips needed to run this technology. Because of that, many forecasters expect that natural gas demand will accelerate in the coming years as companies build more power plants to support AI data centers.
U.S. pipeline operator Energy Transfer on Monday entered into a long-term natural gas supply agreement with private, Denver-based company CloudBurst Data Centers for its development in Central Texas.
Bill Gross knows a thing or two about yield-focused investments. He co-founded PIMCO, where he became a legendary bond investor.
ET's fourth-quarter earnings are likely to have benefited from its fee-based contracts and contributions from its assets spread across major production basins.
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Energy Transfer LP (ET) closed at $20.77 in the latest trading session, marking a +0.05% move from the prior day.
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