Energy Transfer: An Even Stronger Buy Now


  • This article upgrades my earlier buy rating on ET to a strong buy due to the acquisition of Crestwood Equity Partners.
  • I expect this acquisition to catalyze a higher growth rate than my earlier projection.
  • When adjusted by growth rate and yield, valuation metrics approaches absurd levels.
  • The P/E growth ratio is only 0.8x and PEGY (P/E to Growth and Dividend Yield) yield is only 0.5x, both far lower than the 1x ideal threshold.
Image depicting the bull market on the rise


I wrote a few articles in the past year on Energy Transfer (NYSE:ET) starting in a price range of around $13 to $14 (see the chart below). Its shares (or units to be more precise) have indeed delivered strong performance, advancing more than 26% in the past

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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