Energy Transfer: $19 Fair Value Is Warranted

Steven Fiorillo
36.83K Followers

Summary

  • Based on the metrics I look at, Energy Transfer seems to be significantly undervalued and compared to its peer group should trade for at least $19.02 per unit.
  • ET delivered another distribution increase and raised the 2022 adjusted EBITDA guidance level in the Q3 earnings report.
  • ET continues to make its more on the exporting sector as it exports 20% of the NGLs in the worldwide market while signing additional LNG export contracts.

Aerial View of Oil Refinery and Fuel Storage Tanks

CHUNYIP WONG

No matter what Energy Transfer (NYSE:ET) does, Mr. Market continues to discount them compared to its peer group. ET is delivering on its plan of deleveraging its balance sheet, as billions have been erased from its long-term debt, Enable Midstream was acquired, and

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This article was written by

36.83K Followers
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD, KMI, 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. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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