Energy Transfer LP: A Safe High-Dividend Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Stable Business Foundation: Energy Transfer LP operates over 140,000 miles of pipeline, with approximately 90% of adjusted EBITDA derived from fees, ensuring distribution stability and reducing reliance on commodity price fluctuations.
- Natural Gas Growth Potential: About 40% of adjusted EBITDA comes from natural gas operations, particularly driven by the booming data center market, which significantly increases demand for natural gas and showcases future growth opportunities for the company.
- Capital Expenditure Plans: Energy Transfer plans to increase capital expenditures on natural gas capabilities in 2026, including doubling the capacity of its Bethel gas storage facility in Texas, further solidifying its market position.
- Distribution Growth Expectations: Management anticipates a long-term distribution growth of 3% to 5%, combined with a current high yield of 7.4%, making it highly attractive to income investors and reflecting the company's strong financial position.
Analyst Views on ET
Wall Street analysts forecast ET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ET is 20.65 USD with a low forecast of 17.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 17.960
Low
17.00
Averages
20.65
High
23.00
Current: 17.960
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
