Energy Transfer is a "Buy" due to its strong position in meeting rising energy demands, especially from data centers, offering solid long-term returns and distribution yield despite recent correction. ET's diversified midstream operations, including natural gas, NGL, and crude oil transportation, demonstrate stable EBITDA generation, with strategic shifts towards data center energy supplies. The U.S. natural gas market is experiencing significant growth, driven by increasing electricity demand and AI usage, positioning ET to benefit from favorable pricing and high ROIC projects.
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Energy Transfer's dual strategy of organic growth and M&A, combined with bold leadership, positions the company well. Major pipeline projects, storage expansions, and data center energy contracts will drive growth. The Lake Charles LNG project offers real promise. Risks are manageable given experienced leadership, industry scale, great optionality and projects underway. Data center opportunities are being realized in initial contracts for supplying hyperscaler needs.
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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.
Energy Transfer is trading above its 50-day SMA, backed by strong pipeline assets, rising demand and steady fee-based earnings growth.
Midstream MLPs are attractive due to industry consolidation, strong free cash flow, and a focus on unitholder returns, despite energy transition concerns. Energy Transfer (ET) offers sector-low valuation, disciplined growth, and a 7.5% yield, making it my top pick for long-term infrastructure exposure. MPLX benefits from its Marathon link, high utilization, and strong natural gas growth, with a 7.7% yield and best-in-class profitability metrics.
Energy Transfer's expanding gas storage network boosts reliability, fee-based revenues and long-term growth potential.
ET's recent underperformance may be attributed to the mixed market sentiments surrounding the energy sector, as the OPEC+ cuts/ ramping-up US outputs trigger lower spot prices. This is worsened by the management's narrowed FY2025 adj EBITDA guidance and the hefty debt reliance arising from the aggressive growth capex. Even so, we believe that ET's correction from 2025 heights and the subsequent sideways trading has been a boon, attributed to the still rich distribution yields.
Energy Transfer's resilience stands out amid energy sector weakness, supported by a diversified business and robust distribution yield despite sector headwinds. 2025 EBITDA guidance was trimmed, but it shouldn't affect the bullish narrative over the next two years. There is a burgeoning and growing backlog that should benefit ET's earnings and distribution growth, benefiting income investors.
Recently, Zacks.com users have been paying close attention to Energy Transfer LP (ET). This makes it worthwhile to examine what the stock has in store.
Energy Transfer continues to outperform the S&P 500, driven by robust dividend yield and strong volume growth across its midstream and export operations. The company is capitalizing on surging U.S. energy demand and export opportunities, with multi-billion dollar growth projects and expanding integration into datacenter and power plant networks. Shareholder returns remain a priority, with a 7.5% dividend yield comfortably covered by cash flow and ongoing investments supporting future EBITDA growth.