If you are looking for high yields, you have probably heard of Energy Transfer and Enterprise Products Partners. Energy Transfer has a track record of letting income-focused unitholders down and putting management's interests first.
Energy Transfer has a strong pipeline of growth projects in front of it. With the stock and sector trading below historical levels, the stock could see its valuation multiples expand.
In the past, ET was viewed as a more aggressive way to invest in midstream infrastructure. However, ET has transformed itself over the past several years. We detail why it has now become a retiree's dream investment.
Energy Transfer is getting an acquisition-fueled boost this year. The MLP has several organic expansion projects in its backlog, and more under development, to fuel future growth.
Energy Transfer is growing its EBITDA at a healthy clip, both organically and from prudent inorganic additions. As ET gradually expands its footprint, it is well-poised to benefit from increased electricity demand, particularly from data centers. ET stock's valuations are at a slight premium to a rather well-defined long-term trading range. But arguably, this premium is deserved due to the growth catalysts ahead.
ET is a no-brainer choice for investors seeking a reliable, high-yielding stock amid the anticipated rotation from growth to value in the stock market. I am highly confident in ET's dividend reliability due to its fortress-like positioning in the mature midstream industry, where the risk of new competition is extremely low. Apart from the stellar dividend yield, my intrinsic value calculations also indicate substantial potential upside.
Tepper bought more shares of UPS for his Appaloosa hedge fund in Q2. However, he trimmed Appaloosa's stake in Energy Transfer.
Energy Transfer LP (ET) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Electric vehicles, data centers, and LLMs require large amounts of electricity, increasing demand for energy. Energy Transfer has a unique footprint with extensive energy infrastructure across the country. ET is undervalued, positioned to benefit from increased energy demand, and offers an 8.23% yield, making it an attractive investment.
Energy Transfer reported lower revenue and earnings per share than expected but increased guidance for the year due to recent acquisitions. Despite falling short of analysts' expectations, the company saw strong profitability metrics across most operating segments. Management expects EBITDA to continue to improve, and the shares offer an upside of up to 89.9% based on valuation comparisons with similar companies.
Energy Transfer LP is a large midstream company with a market cap of over $50 billion and a dividend yield of over 8%. The company has seen record earnings, with net income over $1.3 billion for the quarter, and expects adjusted EBITDA in 2024 of $15.4 billion. Energy Transfer is focused on strong growth investments, with $3 billion expected in growth capital for 2024, and is committed to generating strong shareholder returns.
Energy Transfer saw strong growth in Q2 and increased its full-year guidance. The company sees a big opportunity in front of it from increased natural gas demand.