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Due to the recent drop in natural gas prices in the last few weeks, Energy Transfer LP (NYSE:ET) stock price dropped from $12 to $10 per share. However, natural gas price is still about 50% more than their levels a
Energy Transfer: Recent Developments Are Ignored
Summary
- 24% of ET’s adjusted EBITDA in 1Q 2022 belongs to the natural gas segment.
- The company’s natural gas revenues depend on its operations in Permian, Eagle Ford, Anadarko, and Marcellus/Utica Basins.
- In July 2022, gas production in Eagle Ford and Permian is expected to increase by 132 and 165 million cubic feet per day, respectively.
- Besides, due to the summer cooling demand, I expect ET's natural gas operations to increase in the following months.
- ET’s financial ratios versus its competitors indicate that the company is attractive as a potential investment. The stock is worth $16 per share.
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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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