Energy Transfer: A Top MLP Investment Pick

Summary

• Energy Transfer offers stable, fee-based cash flows with 90% of EBITDA from long term contracts, making it resilient to energy market volatility.
• The pipeline operator and LNG investor boasts a high 7.5% distribution yield, a strong coverage profile, and an attractive valuation relative to industry peers, supporting ongoing income growth.
• Recent acquisitions and organic investments, particularly in the LNG realm, are set to drive EBITDA and distribution growth, reinforcing the bullish investment case.
• With a low valuation based off of EBITDA, steady DCF growth, and well-supported distributions, ET remains a top pick for investors seeking stable returns in uncertain energy markets.

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Energy Transfer (NYSE:ET) generated mid single-digit EBITDA growth in the first-quarter, on a year-over-year basis, and the midstream platform is set for strong growth this year as well. Energy Transfer generates a high degree of EBITDA and cash flow from fee-based

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET, EPD, ENB, MPLX, KMI 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.