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Energy Transfer LP Unit (NYSE:ET) stock price soared by 45% in the last 6 months as the natural gas price increased by 138% to $8.8 per MMBtu on 6 June 2022 from $3.7 per MMBtu on 31 December
Energy Transfer: The Stock Is Worth More Than $20
Summary
- Due to its recent developments, Energy Transfer is well-positioned to benefit from the high natural gas prices.
- Demand for Energy Transfer’s midstream services will be strong as natural gas production in the Permian Basin will increase.
- The company’s estimation of its adjusted EBITDA of $12.2 billion - $12.6 billion for 2022 is reliable.
- In light of their up-to-now performance and increased guidance for 2022, we can expect strong cash and capital structure outlook for the rest of 2022.
- Energy Transfer is worth between $20-21 per share.
SM Investor focuses on medium to long-term investments, analyzing companies' financial metrics such as cash flow, growth, and valuation. As financial analysts with real market education and experience, we cover diversified portfolios including growth and value equities, and dividend stocks (including REITs and RICs). Our approach involves using diversified value investing strategies to identify profitable companies with strong financials and low risks at bargain prices.SM Investor collaborates with Morteza Moradi, who holds a Master's degree in Economics and has more than 10 years of experience writing data-driven analytical and investing content.
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.
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