Energy Transfer: Good Growth Prospects, But No Near-Term Catalyst

Power Hedge
Investing Group Leader

Summary

  • Energy Transfer LP is well positioned to benefit from rising U.S. natural gas demand, especially due to its Marcellus presence and ongoing infrastructure expansion.
  • Despite limited near-term catalysts from oil prices, ET's cash flows remain resilient and are not directly tied to commodity price swings.
  • The company offers a high, tax-advantaged yield (7.29%) with strong distribution coverage, making it attractive for income-focused investors.
  • While unit price growth may be muted short-term, ET stock remains a solid yield play with long-term growth potential as natural gas demand increases.
  • This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »

Natural gas pipeline.

abadonian

Energy Transfer LP (NYSE:ET) is one of the largest midstream master limited partnerships in the United States, boasting a network of natural gas (NG1:COM), natural gas liquids, crude oil, and refined product pipelines that stretch across

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This article was written by

Power Hedge
15.68K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MPLX 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.

This article was originally published to Energy Profits in the middle of the trading day on July 7, 2025. Subscribers to the service have had since that time to act on it.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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