Energy Transfer Secures Natural Gas Deals with Oracle, Projecting Over $25 Billion in Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- High-Yield Stock: Energy Transfer offers a 7.5% dividend yield, attracting investor interest, particularly against a backdrop of strong natural gas demand, which is expected to secure stable cash flow and earnings growth in the future.
- Strategic Partnerships: The company has secured multiple agreements with Oracle to supply approximately 900,000 Mcf of natural gas daily to three data centers in Texas, directly benefiting from the build-out of AI data centers and enhancing its competitive position in the market.
- Long-Term Contracts: A 20-year binding agreement with Entergy Louisiana will provide 250,000 MMBtu of firm transportation service starting December 2028, supporting Meta's new data center in North Louisiana, further solidifying the company's market position.
- Pipeline Capacity Expansion: In the past year, the company has contracted over 6 Bcf of new pipeline capacity with demand-pull customers, projected to generate over $25 billion in future revenue, ensuring long-term profitability and cash flow stability.
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: 18.110
Low
17.00
Averages
20.65
High
23.00
Current: 18.110
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.
