ET Stock Recent News

Energy Transfer's expanding gas storage network boosts reliability, fee-based revenues and long-term growth potential.

Key Points in This Article: The U.S.

ET's recent underperformance may be attributed to the mixed market sentiments surrounding the energy sector, as the OPEC+ cuts/ ramping-up US outputs trigger lower spot prices. This is worsened by the management's narrowed FY2025 adj EBITDA guidance and the hefty debt reliance arising from the aggressive growth capex. Even so, we believe that ET's correction from 2025 heights and the subsequent sideways trading has been a boon, attributed to the still rich distribution yields.

Units of Energy Transfer (ET 0.03%) have stumbled this year, declining by more than 10%. The energy midstream giant has woefully underperformed the S&P 500 (^GSPC -0.59%), which has rallied nearly 10% so far this year.

The stock market has continued to climb higher, with the S&P 500 (^GSPC -0.01%) rallying over 15% in the past year. This has increased its P/E ratio from 24.2 times to 25.3x and reduced its dividend yield from 1.3% to 1.2%.

Dividends are one of the oldest and most reliable forms of returning capital to shareholders, dating back centuries. Income investing focuses on cash flows, providing a reliable foundation even when market prices fluctuate. Every time we collect a dividend payment, we win!

I hunt investments that combine safety, income, and growth, avoiding hype and focusing on long-term, high-quality opportunities. Some areas are unloved and undervalued, offering income, potential growth, and protection against inflation, perfect for patient investors. I seek places with professional management, liquidity, and dual potential, giving me both steady income and the chance for capital gains.

The AI boom is driving a massive increase in electricity demand, particularly from data centers, which is expected to significantly increase natural gas consumption in the United States in the coming years.

Midstream infrastructure offers high yields, strong cash flow, defensive contracts, and inflation protection, making it my top investment sector currently. I recently chose to buy Energy Transfer over Genesis Energy, despite GEL's strong distribution growth outlook. I detail why in this article.

Pipeline operators with strong cash flow, steady growth projects, and well-covered payouts can be the backbone of an income portfolio. Let's look at three master limited partnerships (MLPs) that offer ultra-high yields, dependable operations, and steady growth.