Entering text into the input field will update the search result below

Energy Transfer: All For One Kelsey Warren


  • The company has to decide if there is an avenue to overturn the $410 million judgement.
  • Far more important was how management tried to eliminate downside risk to key insiders.
  • Williams was concerned that new shareholders could take actions that would decrease the value of their holdings post-merger.
  • Management recently agreed to purchase common units at a price not available to the public.
  • There are plenty of other issues facing Energy Transfer and its subsidiaries.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Oil Or Gas Transportation With Blue Gas Or Pipe Line Valves On Soil And Sunrise Background

onurdongel/E+ via Getty Images

Energy Transfer (NYSE:ET) recently lost a court case. As a result, they have a more than $410 million debt to pay (the judgement plus attorneys' fees minus a sanction). Now management has to

I analyze oil and gas companies and related companies like Energy Transfer in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

Long Player profile picture

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

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.

Recommended For You

Comments (476)

Wishful thinking, but if KW steps-down and moves on to some other "unrelated ventures" (not on paper but in-practice), ET's stock can appreciate considerably.
Seems like current management is powerless, not able to think and operate independently, especially when they're under KW's shadow.
Sanmartinoclimber profile picture
@wallstlobo I only hope that ET is positioned as well as they’ve been advertised
Great, KW built this empire. He is given non-stop credit by "some" for doing so...but for shareholders to ignore that his presence is no longer welcomed and hurting the company due to his arrogance and rift with the public, shouldn't be taken lightly. Unfortunately, he cannot be thrown out but if he did some introspection, he'd know better!!!
RBC Capital Markets rates ET Outperform with price target $14. The pro’s have ET a consensus buy.
Long Player profile picture
@harvadler And if too many have it as outperform, then research has aptly demonstrated the opposite will happen. Hence all the contrarian investing books out there.
Some on this platform brag, ET is one of the best MLPs out there but won't admit, there's a good reason for this company to not get the respect.
A simpler answer can be: Dysfunctional management policies..
It is profit taking time. The good news is there plenty of buyers at current levels. At current levels 8% plus is a better return then the dividend. Those waiting for $8.00 may have to wait a very long time.
Desert Wolf profile picture
@ted lujan Your $8 reference was Not a Very Loooong Time ET is at $9.62 Today
@Desert Wolf $9.42 as I write. Sold some off, but still hold the rest @ 10.25% profit. Better than the Bank, I am not a greedy person.
Desert Wolf profile picture
@ted lujan 9.59 Friday Close. Energy Fundamentals are good and ET appears to have more Direction/Restraint than anytime in recent memory. $15 is next with restored Distribution. Xiden or his puppet masters may even start a war.
LP old wall st saying-- You don't own the company- You own the stock

You'll see $12 before $8
Long Player profile picture
We are not that far from $8
@Long Player But the stock is moving toward $12, not $8.
Long Player profile picture
@harvadler It happens to be January. Now let's see how the year unfolds as this management is not to be underestimated when it comes to the common units finding a way to decline.
@Long Player When will KW announce his next purchase??? He has stated he “wants to buy something” chemical tint. company or additional footprint
Long Player profile picture
@az d-back I would not be anxious for that one.
@az d-back You never know, he might be out there, looking into one. He's never afraid of spending your money...LOL!!!
Look at last years chart.. look somewhat similar…
I own 17000 shares for 18 years and hope it goes to 15.00 …my basis is ZERO….
MYbe the new team can do it ???? KW just rewarded himself while he Fu&%(ed it up..
@AZ BOY Getting to $15 might be a stretch. I sold "some" of mine at $11.00 last year, feel so much better.
Throwing Ketchup profile picture
@nationalanthem As did I, it was tooooo tempting not to. I bought half back in the mid $10, not minding if I was a bit early.
@SnowDog222 A smart move, I think. As this company's management makes it very hard to trust them.
Teseye profile picture
Get on board, this is the best MLP based on fundamentals... by far... block out the noise, in this market trust the fundamentals, they never lie... we have lived in this delusional world too long, money comes here, it has too much FCF it has an amazing low EV/EBITDA... and despite this article, management IS doing well over the last few months. This is the MLP to be in.
ET up over 15% since 01/01 and steadily climbing.
Long Player profile picture
@harvadler That makes it a trading opportunity
@harvadler Wait till the other shoe drops. Currently, they're on the hook for $410 million break-up fee + 5 years of interest, which could've been $1.5B, the entire amount. I'm sure, ET will appeal.
Hard to find a company, has so many unresolved issues. Looks like their management enjoys chaos!!
houtex profile picture
Can you explain why it “could have been” $1.5b?
@everlast00 Come on!! Please give ET's management a break, if they weren't so busy fighting one crisis after another, they'd have one of the Best Business Plans in the industry.....LOLOL!!
@Long Player Worth reading: "Warren Buffett speaks by Janet Lowe", if not already done so.
Buffett rates "Integrity of the Management" as his highest and most valuable asset, which could be "seriously" lacking in case of ET. Of course "many" on this platform idealize KW, goes to show their own values!!
I find ET as a low risk investment. P/E of 5.04. Dividend @ 6.54%. which is extremely well covered with a good chance of an increase in the near future. Target price of $12.00 to $15.00. Just a few reasons why ET is a buy at current prices. Selling ET at current price might turn out to be rather foolish.
Enjoyed the article as always, LP. I bought a pilot position a couple weeks ago - up 10%, smh.

After reading the investor presentation and latest 10-Q, my question is simple: wth is mgmt doing here? There are literally no goals, no KPIs, whatever, that I can see.

What the heck is their plan??? Reading between the lines, ET still needs to delever by a full turn just to get to 4.0x. That’s 2-3 years out by my math, assuming distribution increases in the interim are stepped back to $1.20.

Am I interested in $1.20 distribution in 2024 and a $20 stock price - for sure! But where the heck is mgmt? Show me the path.
Long Player profile picture
@everlast00 I think the major problem is all these other issues. It is not just the fines. It is everything that goes with it, additional training, work stoppages and of course environmental cleanup. The thing that has never been discussed is all these other costs. They are on the income statement or maybe even capitalized if appropriate. But on a summarized statement like unit holders receive, it is easy for those costs to get lost in the summary. So you really need a management discussion.
My suspicion is that turning the situation around is the first priority and at least publicly, management is confident enough to promise higher distributions. It is hard to tell to what extent the private view matches the public stance.
@Long Player You said something caught my attention; "costs are lost in the summary". Buffett said, when a management does such things, they really don't want you to know the facts!! Stay away from them!!
@Long Player Mgmt needs to drop the hammer and get their stuff together. The shares would double (over time) if they had competence and a plan. But, as with any other MLP, investors have to have confidence in mgmt and the plan in order to give the darned thing appropriate value.
Over the past year, the new CEO’s who are managing the company and were approved by KW, have made decisions good for the company and good for the shareholders. Their stated objectives are reduced leverage, reduced capex, increased free cash flow, buybacks and/or increased dividends. Yes, There are still knits to pick held over from KW’s reign, and KW himself hovers, but has not interfered with the new CEO’s decisions. As a result, brokerages have a consensus BUY on ET and price targets in the $12 - $15 range. A significant majority of SA articles are pro ET. The author may feel the current as he swims upstream.
Sanmartinoclimber profile picture
@harvadler what are the knits left to pick. The 410 blindsided me. As for 12 it needs to be closer to the 15 or more from my standpoint. 12 is very low. 3% growth in a super cycle after undervalued lows... I could make more somewhere else. So are there more hides or not? Lay it all out now rather than later
Is why I’m here
@Sanmartinoclimber Seems like there's never ending saga with this company!! As they say: fool me once, shame on you, fool me twice, shame on me!!
iel76 profile picture
@harvadler The author makes money on clicks... He knows the where to find the best feeding ground...Articles critical of ET are lucrative.
Desert Wolf profile picture
When YOU Buy ET You Know You are getting Kelcy and his Empire. You Buy ET When It is On SALE. As it currently is and has been. If you believe $100 Oil is Realistic ET is a Buy with Upside Potential. ETs Assets are IRREPLACEABLE
Teseye profile picture
@Desert Wolf Precisely... and the author and others are going to say "just buy a similar company not ET because of its management"... it is ridiculous. ET, with "bad management" has more upside than competitors, it's fundamentals jump off the sheet at a time when they stand to substantially profit; short term, the next 2-3 months, nobody f-ing cares about Kelsey whoever and how bad he runs ET, because it's poised to go up 50% or more, and the algos and big institutions who pivot and rotate on a dime, are and will continue to pour in. Is it a long term investment? I don't care. But near term, yes, it is, perhaps one of the best at the moment.
Long Player profile picture
@Desert Wolf Somehow in this country we replace the irreplaceable on a fairly regular basis.
Long Player profile picture
@Haweye1975 Bad management is often the most significant liability not on the balance sheet as this management constantly demonstrates.
@r09traveler IMO, backbone of any company is the credibility of its management, which could be "seriously lacking" here! I can understand "some" may not want to know the ugliness of facts, as it effects their investment decisions and perhaps makes 'em look stupid. I'd like to thank @Long Player for a well balanced approach and presentation of facts, instead. Truly appreciate it!!
ET: Lie down with dogs, wake up with fleas
Long Player profile picture
@r09traveler You would be lucky if that is all that happened
Management paid close to $7.65/share goes to show their opinion of stock's worth. There're too many issues to clear before they consider dividend increases, such as; huge debt and break-up fee etc. etc.... IMO, at this point, ET looks uninvestable.
Teseye profile picture
@nationalanthem ok shill… then Stop Posting, move on. Unless you have an agenda???
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About ET

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ET

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.