Energy Transfer: A 15.2% Distribution Increase Going Into Q3 Earnings Is Absolutely Bullish

Summary

• Energy Transfer just delivered another 15.2% distribution increase, placing its annual increase at 73.77%.
• Energy Transfer could be 1 more distribution increase away from restoring its distribution to its 2020 level of $1.22 annualized per share.
• The Oil Majors are increasing production, and I believe this is bullish for Energy Transfer going into earnings as it could lead to additional revenue and DCF.
• Energy Transfer still looks undervalued after reviewing its valuation metrics, and I believe $20 per unit is its fair value.

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For some time, Big Tech was the market's crown jewel, and energy companies couldn't catch a bid. While big tech still represents the largest segment of the S&P 500, on a YTD basis, not even Apple (AAPL), which

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