Energy Transfer To Boost Unitholder Returns Very Soon

Summary

• After many years of waiting, the first inflection point has been reached. Energy Transfer is finally generating substantial positive free cash flow.
• Generating substantial positive free cash flow is here to stay since it is a key element of Energy Transfer's new era strategy.
• Last year, Energy Transfer used most of its free cash flow to pay down debt. In other words, management made good on their promise to deleverage.
• Now we are close to the next inflection point. The target leverage has been met, under certain assumptions, and management has committed to return additional capital to unitholders in the form of distribution increases and/or unit repurchases.
• In the last earnings call, both co-CEOs mentioned that returning capital will be communicated "beginning next year". The next earnings release is on 16 February, a nice moment to make the big announcement.

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Energy Transfer (NYSE:ET) is set to outperform the broader market by a wide margin. The partnership has finally reached the much anticipated inflection point of generating meaningful positive free cash flow. So far this year, all major indices

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET 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.