Energy Transfer: A Top Income Opportunity

Summary

• Energy Transfer has generated a return of ~40% over the past year, while other major indices have declined. Outperformance is expected to continue.
• Currently offers an attractive distribution yield of nearly 9% with strong distribution coverage and strong fundamentals.
• Has set records in various areas of its operations, including transportation and export volumes, and has made progress on strategic initiatives such as acquisitions and debt repayment.
• Earnings are largely derived from fee-based contracts, not affected by commodity prices.
• Insiders, including the executive chairman, have made significant unit purchases totaling $265 million since January 2021.

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Energy Transfer (NYSE:ET) has been a long-standing investment for me. In the face of significant market turmoil, including material drops in the S&P, Dow Jones, and Nasdaq indices, ET has proved to be a reliable source of stability. Over the past year or so, ET has

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.