This year has been a very good one for Energy Transfer (ET -0.89%). Units of the master limited partnership (MLP) have rocketed nearly 40%.
With 2024 coming to a close, investors are now turning their attention to 2025 and looking toward what stocks may help lead the way in the new year. Within the energy and midstream space, my favorite stock for 2025 is none other than Energy Transfer Partners (ET -0.89%).
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.
Energy Transfer (ET 1.00%) already pays a lucrative distribution. The master limited partnership's (MLP) payout is 6.7%, putting it several times higher than the S&P 500 's dividend yield of 1.2%.
Energy Transfer (ET 0.47%) is having a monster year. Units of the master limited partnership (MLP) have rallied over 35% in 2024.
Williams is threatening to hold Energy Transfer accountable for what Williams believes is frivolous and possibly intimidating court actions. Energy Transfer's deviation from industry practices has led to multiple legal disputes. There is already one costly loss to Williams and more recently that has yet to cost. The ongoing Dakota Access Pipeline litigation and other regulatory issues could likewise result in substantial financial consequences for Energy Transfer.
In recent weeks, Energy Transfer unitholders have enjoyed a big price runup. Over the past month, units are up ~17 percent. Post-3Q fundamentals remain very strong. However, units are approaching my fair value estimate. YTD balance sheet debt jumped to $59 billion from $52 billion. Has management gone on a spending spree?
ET's rising earnings estimates, well-balanced asset spread across the United States and accretive acquisitions will drive the stock from the current levels.
Energy Transfer is a core holding in my portfolio. The company has major growth projects set to be placed into service soon, which should be tangible growth catalysts. Energy Transfer is a financially stable business with a secure 6.7% distribution yield.
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.
ET's recent P/E expansion has factored in some – but not all the – growth potential ahead. Market projects a 11.7% CAGR for its EPS growth through 2028 for good reasons. Potential catalysts include Trump's energy policies, ET's strategic investments in the Permian Basin, and higher energy demand from digital technologies.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?