Energy Transfer Has Become An Energy Empire To Buy Hand Over Fist

Summary

• Energy Transfer's diversified midstream empire and strategic growth projects position it for continued expansion and strong returns, even after significant unit appreciation.
• The company’s robust free cash flow, disciplined capital allocation, and rising distributions underscore its financial strength and resilience in volatile energy markets.
• Current valuation metrics are above sector averages, but ET’s fee-based revenue, EBITDA growth, and high yield make it an attractive entry point after recent price drops.
• Risks include commodity exposure and aging assets, but I remain confident in ET’s future, rating it a strong buy for income and growth investors.

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Introduction

Energy Transfer (NYSE:ET) is a major midstream company that operates one of the largest and most diversified portfolios of energy assets, primarily focused on the transportation and processing of natural gas and crude oil.

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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.