Energy Transfer: High Yield Case That Gets Even Better Each Quarter

Summary:

  • Energy Transfer reported yet another strong quarter.
  • While the underlying financials have improved a lot, the share price has remained relatively flat.
  • This in combination with very bullish signals from Q2 data points has, in my opinion, rendered the FWD EV/EBITDA of 8.25x multiple even more attractive.
  • I elaborate on the key takeaways from Q2 and explain why I remain bullish on ET.

Drilling platform in Baku, Azerbaijan.

AlizadaStudios

In my previous piece on Energy Transfer LP (NYSE:ET), I articulated a continued buy thesis after digesting the Q1, 2024 earnings report. The case was based on an attractive dividend yield of close to 8% that was underpinned


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.


Leave a Reply

Your email address will not be published. Required fields are marked *