Energy Transfer LP provides energy-related services.
Energy Transfer Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$9.88|
|52 Week High||US$4.98|
|52 Week Low||US$11.55|
|1 Month Change||6.81%|
|3 Month Change||-1.20%|
|1 Year Change||56.83%|
|3 Year Change||-36.09%|
|5 Year Change||-34.53%|
|Change since IPO||74.48%|
Recent News & Updates
Energy Transfer: Are You Waiting For An Engraved Invitation?
Energy Transfer's share price remains beaten down, despite strength in commodity prices. It's expanding its presence in key regions, and is rapidly ramping up its global NGL exports. Management is making solid progress towards deleveraging, and ET pays a very well-covered distribution.
Energy Transfer: CenterPoint Energy Already Unwinding Its Units
CenterPoint Energy discloses a 50mm contingent agreement to divest a large portion of its Energy Transfer stake before year end. This comes before the Enable Midstream deal has even closed, but the broker involved likely is already hedging its exposure. With more sales coming in 2022 from CenterPoint Energy and OGE Energy, the big question is if Energy Transfer might buy back units from these two directly.
Why Energy Transfer Issuing Preferred Equity Is So Smart
ET issued a whopping $900 million in preferred equity to reduce outstanding debt during Q2. Given that ET's preferred equity costs ET around 7.5% annually in distributions, it doesn't seem to make sense to issue it to pay off debt that costs much less. However, when you look at the overall cost of capital and ET's future capital allocation opportunities, it makes much more sense.
Energy Transfer And The Dakota Access Pipeline: Like An Elephant With A Fly On Its Butt
The Dakota Access Pipeline is 1,172 miles long versus Energy Transfer's 90,000 miles total. DAPL's financial impact is also small compared to ET's total EBITDA and assets. With Enable in-house who needs DAPL? As the bureaucrats crawl thru the courts towards the DAPL finish line, ET's position continues to look good (maybe).
Energy Transfer Update: Debt Leverage And Unit Valuation
Energy Transfer management reduced the debt leverage ratio well below the 4.5x target. Is it sustainable? How may the rating agencies view it? The stock valuation remains mired at the bottom of the peer group pack. Is this condition permanent? Or might unit prices continue to rise on multiple expansion? YTD 2021, Energy Transfer common units have outperformed the broad market and MLP peers handily. Are investors finally playing a little catch-up?
|ET||US Oil and Gas||US Market|
Return vs Industry: ET underperformed the US Oil and Gas industry which returned 85.8% over the past year.
Return vs Market: ET exceeded the US Market which returned 31.1% over the past year.
Stable Share Price: ET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ET's weekly volatility (4%) has been stable over the past year.
About the Company
Energy Transfer LP provides energy-related services. The company owns and operates approximately 9,400 miles of natural gas transportation pipelines and three natural gas storage facilities in Texas; and 12,340 miles of interstate natural gas pipelines. It also sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies.
Energy Transfer Fundamentals Summary
|ET fundamental statistics|
Is ET overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ET income statement (TTM)|
|Cost of Revenue||US$38.65b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 03, 2021
|Earnings per share (EPS)||1.36|
|Net Profit Margin||7.06%|
How did ET perform over the long term?See historical performance and comparison
6.2%Current Dividend Yield
Is Energy Transfer undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ET ($9.88) is trading below our estimate of fair value ($25.76)
Significantly Below Fair Value: ET is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ET is good value based on its PE Ratio (7.3x) compared to the US Oil and Gas industry average (19.7x).
PE vs Market: ET is good value based on its PE Ratio (7.3x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: ET's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ET is good value based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (2x).
How is Energy Transfer forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ET's earnings are forecast to decline over the next 3 years (-14.5% per year).
Earnings vs Market: ET's earnings are forecast to decline over the next 3 years (-14.5% per year).
High Growth Earnings: ET's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ET's revenue (0.6% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: ET's revenue (0.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ET's Return on Equity is forecast to be low in 3 years time (15.5%).
How has Energy Transfer performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ET has a large one-off loss of $1.7B impacting its June 30 2021 financial results.
Growing Profit Margin: ET's current net profit margins (7.1%) are higher than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: ET's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: ET's earnings growth over the past year (177%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: ET earnings growth over the past year (177%) exceeded the Oil and Gas industry -18.6%.
Return on Equity
High ROE: ET's Return on Equity (13.8%) is considered low.
How is Energy Transfer's financial position?
Financial Position Analysis
Short Term Liabilities: ET's short term assets ($8.2B) do not cover its short term liabilities ($8.5B).
Long Term Liabilities: ET's short term assets ($8.2B) do not cover its long term liabilities ($51.6B).
Debt to Equity History and Analysis
Debt Level: ET's debt to equity ratio (128.4%) is considered high.
Reducing Debt: ET's debt to equity ratio has reduced from 172% to 128.4% over the past 5 years.
Debt Coverage: ET's debt is well covered by operating cash flow (24.5%).
Interest Coverage: ET's interest payments on its debt are well covered by EBIT (4.2x coverage).
What is Energy Transfer current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ET's dividend (6.17%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: ET's dividend (6.17%) is in the top 25% of dividend payers in the US market (3.49%)
Stability and Growth of Payments
Stable Dividend: ET's dividend payments have been volatile in the past 10 years.
Growing Dividend: ET's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.8%), ET's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ET's dividends in 3 years are forecast to be covered by earnings (52.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mackie McCrea (62 yo)
Mr. Marshall S. McCrea, III, also known as Mackie, has been Co-Chief Executive Officer of LE GP, LLC at Energy Transfer LP since January 01, 2021. He serves as Co-Chief Executive Officer of Panhandle Easte...
CEO Compensation Analysis
Compensation vs Market: Mackie's total compensation ($USD7.57M) is below average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Mackie's compensation has been consistent with company performance over the past year.
Experienced Management: ET's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Experienced Board: ET's board of directors are considered experienced (3.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ET insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Energy Transfer LP's employee growth, exchange listings and data sources
- Name: Energy Transfer LP
- Ticker: ET
- Exchange: NYSE
- Founded: 1996
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: US$26.724b
- Shares outstanding: 2.70b
- Website: https://energytransfer.com
Number of Employees
- Energy Transfer LP
- 8111 Westchester Drive
- Suite 600
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/22 23:04|
|End of Day Share Price||2021/10/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.