Energy Transfer: The Move Forward Is Largely Offset By Stock Dilution

(9min)

Summary

  • Energy Transfer reported no improvement in earnings per share when the gain on sale is removed.
  • Legal issues persist, potentially diverting future funds from shareholders to legal settlements, increasing investment risk.
  • Without growth in per share income, there is a limit to cash flow, distributable cash flow, and EBITDA growth in per share terms.
  • Adjusted EBITDA gains are offset by increased depreciation, interest, and tax expenses, and diluted by additional share issuances.
  • The website calculates the long-term return of this business as one of the lowest compared to other competitors.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Oil Refinery And Pipeline

imaginima

Energy Transfer LP (NYSE:ET) reported that the latest quarter improved compared to the previous quarter in the previous fiscal year. That should be expected simply by the sheer number of acquisitions made. However, earnings per share, which is a key measure as

I analyze oil and gas companies and related companies like Energy Transfer in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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