Energy Transfer: Distribution Increases And Fair Value Based On Peer Valuations

Summary

• Over the years Energy Transfer has been a dog as unitholders have experienced a 50% distribution cut alongside declining unit prices.
• I conducted a full analysis against EPD, ENB, KMI, and MPLX and ET is drastically undervalued as it generates the most revenue, Adjusted EBITDA, and DCF while having the best valuations.
• The recent decision out of FERC may have just increased the value of ET's assets overnight as it will be even harder to build pipelines in America.
• I believe shares of ET should trade for at least $24.66. If that happens is a different story, but I will be adding to my position at these levels.

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It's been a painful journey for unitholders of Energy Transfer (NYSE:ET). Investors have watched in disbelief as units of ET declined by 47.27% over the previous five years. No matter what ET did, the units wouldn't respond, and many investors became agitated with

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

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.