Energy Transfer LP Rated Among Best Oil and Gas Stocks by Hedge Funds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Yahoo Finance
- Analyst Price Target Increase: Morgan Stanley raised Energy Transfer LP's (NYSE:ET) price target from $21 to $23, indicating over 20% upside potential, despite the company missing profit estimates in its Q1 report.
- Significant Revenue Growth: Energy Transfer LP's revenue surged over 32% year-over-year, exceeding market expectations, showcasing the company's strong performance in the energy sector.
- Improved EBITDA and Cash Flow: The company's adjusted EBITDA increased by 20% year-over-year, while DCF attributable to partners rose by 17%, indicating enhanced operational efficiency and profitability.
- Upward Guidance for Full Year: Energy Transfer LP raised its adjusted EBITDA guidance for 2026 to between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion, reflecting the company's confidence in future growth.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 19.540
Low
17.00
Averages
20.65
High
23.00
Current: 19.540
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.
Dutch Court to Hear Greenpeace Case Against Energy Transfer
- Court Jurisdiction Confirmed: A Dutch court has decided to hear Greenpeace's lawsuit against U.S. pipeline company Energy Transfer despite the company's objections, asserting jurisdiction due to Greenpeace's headquarters in the Netherlands, which could impact Energy Transfer's reputation and legal strategy in Europe.
- Lawsuit Background: Greenpeace alleges that Energy Transfer's lawsuits in the U.S. against groups protesting the Dakota Access pipeline are 'meritless', and a favorable ruling for Greenpeace could significantly affect the company's future legal actions and damage its public image.
- Compensation Claims: Greenpeace is seeking compensation for losses incurred in the U.S., particularly during the Dakota Access protests, and if the court supports its claims, Energy Transfer could face liabilities of up to $3.45 million, further straining its financial position.
- Strategic Implications: The progress of this lawsuit may compel Energy Transfer to reassess its legal strategies and public relations, especially in light of increasing activism from environmental organizations, potentially affecting future project approvals and investor confidence.
See More
Investment Recommendations for Zoetis and Energy Transfer
- Zoetis Investment Warning: Zoetis's performance has raised concerns, with analysts expressing a preference for Elanco for the first time, indicating potential challenges for Zoetis in the animal health sector that could impact market confidence and stock performance.
- Energy Transfer Investment Opportunity: Energy Transfer is viewed as a highly attractive investment option, with analysts noting its undervalued stock price and good dividend yield, likely appealing to investors seeking stable income.
- Market Sentiment Shift: The contrasting negative outlook for Zoetis and positive sentiment for Energy Transfer reflects differing expectations in the market, which may lead investors to reassess their portfolios.
- Long-term Investment Strategy: Jim Cramer recommends focusing on Energy Transfer's investment potential, emphasizing its undervalued status and stable dividend yield, which could provide investors with long-term wealth growth opportunities.
See More
Energy Transfer LP Rated Among Best Oil and Gas Stocks by Hedge Funds
- Analyst Price Target Increase: Morgan Stanley raised Energy Transfer LP's (NYSE:ET) price target from $21 to $23, indicating over 20% upside potential, despite the company missing profit estimates in its Q1 report.
- Significant Revenue Growth: Energy Transfer LP's revenue surged over 32% year-over-year, exceeding market expectations, showcasing the company's strong performance in the energy sector.
- Improved EBITDA and Cash Flow: The company's adjusted EBITDA increased by 20% year-over-year, while DCF attributable to partners rose by 17%, indicating enhanced operational efficiency and profitability.
- Upward Guidance for Full Year: Energy Transfer LP raised its adjusted EBITDA guidance for 2026 to between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion, reflecting the company's confidence in future growth.
See More
Stable Dividend Performance of High-Yield Stocks
- Ares Capital's Stable Dividends: Ares Capital has paid a stable or growing dividend for over 16 consecutive years, currently offering a quarterly dividend of $0.48 per share, with a high yield of 10.2% reflecting its strong financial health and earnings capacity, making it appealing to risk-tolerant investors despite its higher risk profile.
- Energy Transfer's Strong Cash Flow: Energy Transfer generated $2.7 billion of distributable cash flow in the first quarter, easily covering nearly $1.2 billion in distributions, and plans to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive its distribution growth by 3% to 5% annually.
- Starwood Property's Consistent Dividends: Starwood Property Trust, a real estate investment trust, has maintained its quarterly dividend rate of $0.48 for over a decade, and although its distributable earnings were $0.39 per share in the first quarter, it has $3.87 per share in unrealized distributable earnings to support its dividend, showcasing its sustainability.
- Attracting Risk Investors: Ares Capital, Energy Transfer, and Starwood Property currently offer dividend yields up to 11.2%, and despite the overall low dividend yields in the market, these companies attract income-seeking investors through their stable dividend strategies, demonstrating their competitiveness in the current market environment.
See More
Three High-Yield Stocks to Boost Dividend Income
- Ares Capital's High Yield: Ares Capital (ARCC) currently offers a dividend yield of 10.2%, necessitated by its requirement to distribute 90% of taxable net income, ensuring sustainability and demonstrating competitive strength in high-risk dividend stocks with over 16 years of stable growth.
- Energy Transfer's Cash Flow: Energy Transfer (ET) generated $2.7 billion of distributable cash flow in Q1, easily covering nearly $1.2 billion in distributions, while planning to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive annual dividend growth of 3% to 5%.
- Starwood Property Trust's Stability: Starwood Property Trust (STWD) boasts an 11.2% dividend yield, maintaining a quarterly dividend of $0.48 for over a decade; despite Q1 distributable earnings falling short of dividends, it holds $3.87 per share in unrealized distributable earnings, ensuring dividend security.
- Investment Opportunities for Risk Tolerance: Ares Capital, Energy Transfer, and Starwood Property all present high-yield dividends, making them attractive for risk-tolerant investors to bolster dividend income in June, highlighting the necessity of seeking appealing investments in a low-yield environment.
See More
Analysis of Dividend Growth Potential in Energy Stocks
- Chevron's Dividend Advantage: Chevron has increased its dividend for 39 consecutive years and expects earnings per share and free cash flow to grow by at least 10% annually, making its 3.9% forward dividend yield sustainable and attractive to income investors.
- Energy Transfer's High Yield Distribution: Energy Transfer offers a distribution yield of 6.9%, which was reduced during the pandemic but has since recovered and surpassed pre-pandemic levels, demonstrating the company's strong distribution capacity amid rising natural gas demand.
- Enterprise Products Partners' Solid Finances: Enterprise Products Partners has increased its distribution for 27 consecutive years, with a distribution yield exceeding 5.7%, and its robust balance sheet with $3.3 billion in liquidity ensures continued dividend sustainability, appealing to income investors.
- Natural Gas Demand Drivers: With the increasing demand for natural gas from AI data centers, Chevron, Energy Transfer, and Enterprise Products Partners are all well-positioned to benefit and drive future dividend growth.
See More
Dutch Court to Hear Greenpeace Case Against Energy Transfer
- Court Jurisdiction Confirmed: A Dutch court has decided to hear Greenpeace's lawsuit against U.S. pipeline company Energy Transfer despite the company's objections, asserting jurisdiction due to Greenpeace's headquarters in the Netherlands, which could impact Energy Transfer's reputation and legal strategy in Europe.
- Lawsuit Background: Greenpeace alleges that Energy Transfer's lawsuits in the U.S. against groups protesting the Dakota Access pipeline are 'meritless', and a favorable ruling for Greenpeace could significantly affect the company's future legal actions and damage its public image.
- Compensation Claims: Greenpeace is seeking compensation for losses incurred in the U.S., particularly during the Dakota Access protests, and if the court supports its claims, Energy Transfer could face liabilities of up to $3.45 million, further straining its financial position.
- Strategic Implications: The progress of this lawsuit may compel Energy Transfer to reassess its legal strategies and public relations, especially in light of increasing activism from environmental organizations, potentially affecting future project approvals and investor confidence.
See More
Investment Recommendations for Zoetis and Energy Transfer
- Zoetis Investment Warning: Zoetis's performance has raised concerns, with analysts expressing a preference for Elanco for the first time, indicating potential challenges for Zoetis in the animal health sector that could impact market confidence and stock performance.
- Energy Transfer Investment Opportunity: Energy Transfer is viewed as a highly attractive investment option, with analysts noting its undervalued stock price and good dividend yield, likely appealing to investors seeking stable income.
- Market Sentiment Shift: The contrasting negative outlook for Zoetis and positive sentiment for Energy Transfer reflects differing expectations in the market, which may lead investors to reassess their portfolios.
- Long-term Investment Strategy: Jim Cramer recommends focusing on Energy Transfer's investment potential, emphasizing its undervalued status and stable dividend yield, which could provide investors with long-term wealth growth opportunities.
See More
Energy Transfer LP Rated Among Best Oil and Gas Stocks by Hedge Funds
- Analyst Price Target Increase: Morgan Stanley raised Energy Transfer LP's (NYSE:ET) price target from $21 to $23, indicating over 20% upside potential, despite the company missing profit estimates in its Q1 report.
- Significant Revenue Growth: Energy Transfer LP's revenue surged over 32% year-over-year, exceeding market expectations, showcasing the company's strong performance in the energy sector.
- Improved EBITDA and Cash Flow: The company's adjusted EBITDA increased by 20% year-over-year, while DCF attributable to partners rose by 17%, indicating enhanced operational efficiency and profitability.
- Upward Guidance for Full Year: Energy Transfer LP raised its adjusted EBITDA guidance for 2026 to between $18.2 billion and $18.6 billion, up from the previous range of $17.45 billion to $17.85 billion, reflecting the company's confidence in future growth.
See More
Stable Dividend Performance of High-Yield Stocks
- Ares Capital's Stable Dividends: Ares Capital has paid a stable or growing dividend for over 16 consecutive years, currently offering a quarterly dividend of $0.48 per share, with a high yield of 10.2% reflecting its strong financial health and earnings capacity, making it appealing to risk-tolerant investors despite its higher risk profile.
- Energy Transfer's Strong Cash Flow: Energy Transfer generated $2.7 billion of distributable cash flow in the first quarter, easily covering nearly $1.2 billion in distributions, and plans to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive its distribution growth by 3% to 5% annually.
- Starwood Property's Consistent Dividends: Starwood Property Trust, a real estate investment trust, has maintained its quarterly dividend rate of $0.48 for over a decade, and although its distributable earnings were $0.39 per share in the first quarter, it has $3.87 per share in unrealized distributable earnings to support its dividend, showcasing its sustainability.
- Attracting Risk Investors: Ares Capital, Energy Transfer, and Starwood Property currently offer dividend yields up to 11.2%, and despite the overall low dividend yields in the market, these companies attract income-seeking investors through their stable dividend strategies, demonstrating their competitiveness in the current market environment.
See More
Three High-Yield Stocks to Boost Dividend Income
- Ares Capital's High Yield: Ares Capital (ARCC) currently offers a dividend yield of 10.2%, necessitated by its requirement to distribute 90% of taxable net income, ensuring sustainability and demonstrating competitive strength in high-risk dividend stocks with over 16 years of stable growth.
- Energy Transfer's Cash Flow: Energy Transfer (ET) generated $2.7 billion of distributable cash flow in Q1, easily covering nearly $1.2 billion in distributions, while planning to invest between $5.5 billion and $5.9 billion in organic expansion projects in 2023, which is expected to drive annual dividend growth of 3% to 5%.
- Starwood Property Trust's Stability: Starwood Property Trust (STWD) boasts an 11.2% dividend yield, maintaining a quarterly dividend of $0.48 for over a decade; despite Q1 distributable earnings falling short of dividends, it holds $3.87 per share in unrealized distributable earnings, ensuring dividend security.
- Investment Opportunities for Risk Tolerance: Ares Capital, Energy Transfer, and Starwood Property all present high-yield dividends, making them attractive for risk-tolerant investors to bolster dividend income in June, highlighting the necessity of seeking appealing investments in a low-yield environment.
See More
Analysis of Dividend Growth Potential in Energy Stocks
- Chevron's Dividend Advantage: Chevron has increased its dividend for 39 consecutive years and expects earnings per share and free cash flow to grow by at least 10% annually, making its 3.9% forward dividend yield sustainable and attractive to income investors.
- Energy Transfer's High Yield Distribution: Energy Transfer offers a distribution yield of 6.9%, which was reduced during the pandemic but has since recovered and surpassed pre-pandemic levels, demonstrating the company's strong distribution capacity amid rising natural gas demand.
- Enterprise Products Partners' Solid Finances: Enterprise Products Partners has increased its distribution for 27 consecutive years, with a distribution yield exceeding 5.7%, and its robust balance sheet with $3.3 billion in liquidity ensures continued dividend sustainability, appealing to income investors.
- Natural Gas Demand Drivers: With the increasing demand for natural gas from AI data centers, Chevron, Energy Transfer, and Enterprise Products Partners are all well-positioned to benefit and drive future dividend growth.
See More
