Energy transfer stock3/2/2023 ![]() ![]() While Energy Transfer's underlying business and its high yield look appealing, there are other midstream companies with better balance sheets and similar valuations right now. On average, Wall Street analysts predict that Energy Transfers share price could reach 15.00 by Aug 18, 2023. Unless we see significant improvement in its leverage metrics, then it would not be surprising if we see another distribution cut when that LNG export terminal gets the green light. Considering management's track record, though, it's a bet against history. Perhaps this current slate of capital spending and acquisitions will generate higher returns than its previous slate of projects. InvestorPlace 4 days ago The 7 Best Stocks Under 15 to Buy Now If you’re. Also, management made a $485 million acquisition in August. In the latest trading session, Energy Transfer LP (ET) closed at 11.71, marking a +1.83 move from the previous day. If it does, though, it will likely cost tens of billions of dollars that will need to find funding somewhere. Stock analysis for Energy Transfer LP (ET:New York) including stock price, stock chart, company news, key statistics, fundamentals and company profile. Management has yet to give the green light to build that prospective LNG export terminal mentioned above. The company went through several restructurings and consolidations of subsidiary partnerships over the past decade that resulted in lower payouts for Energy Transfer shareholders.ĭespite the recent payout cut and the smaller capital spending plan for 2022, investors may not be out of the woods yet. This isn't the first time its payout has been cut, either. Needing cash to fund its capital spending plans, it slashed its payout to reduce its reliance on debt and equity to fund growth. The company was at risk of losing its investment-grade credit rating. That debt burden was so onerous that the company was forced to slash its payout to investors by 50% back in 2020. Management estimates that 85% to 90% of its annual revenue comes from fixed-price fee contracts for the use of its assets. As a midstream operator of pipelines, processing facilities, storage terminals, and a liquefied natural gas (LNG) export terminal in the planning phase, it is in one part of the oil and gas industry where commodity prices don't matter as much. ![]() If you read through the company's investor presentations, valuation, and current distribution yield, you can see why many people would see the opportunity here. Is this juicy payout too good to be true? Let's see if Energy Transfer's operations can support this kind of high-yield payout and whether you can trust it enough to be a buy. The midstream oil and gas company currently sports a distribution yield of 8.1%. ![]() One company that stands out as looking incredibly cheap is Energy Transfer ( ET -0.97%). Even though the oil and gas sector has been running laps around the broader market in 2022, there are still loads of companies in the space selling for dirt-cheap valuations and sky-high yields. ![]()
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