Energy Transfer: Why I Am Loving This 7%-Yielding Midstream Play

Summary:

• Energy Transfer is a well-run midstream company with consistent growth in EBITDA and distributions, offering stable and low-risk cash flows.
• The company has a significant pipeline footprint, focusing on natural gas, and benefits from growing energy demand in the U.S.
• Strategic acquisitions, like Crestwood Equity Partners and WTG Midstream, have bolstered Energy Transfer’s operational footprint and long-term distributable cash flow growth.
• Trading at an attractive valuation with a 7% yield, ET is poised for future growth, despite potential risks from green energy legislation.

Energy Transfer (NYSE:ET) is a well-run midstream company that has achieved consistent growth in key financial metrics, including revenue, EBITDA, distributable cash flow and distributions. Energy Transfer offers investors a very stable distribution coverage profile as well as organic and acquisition-driven growth potential, especially

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ET, EPD, KMI either through stock ownership, options, or other derivatives. 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.

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