NYSE:ET

Stock Analysis Report

Executive Summary

Energy Transfer LP provides energy-related services in the United States and China.

Snowflake


Similar Companies

Share Price & News

How has Energy Transfer's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

ET

-1.7%

US Oil and Gas

0.5%

US Market


1 Year Return

-26.5%

ET

-21.6%

US Oil and Gas

6.8%

US Market

Return vs Industry: ET underperformed the US Oil and Gas industry which returned -21.6% over the past year.

Return vs Market: ET underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ETIndustryMarket
7 Day1.8%-1.7%0.5%
30 Day-6.6%-6.4%-0.8%
90 Day-16.2%-9.4%-0.9%
1 Year-20.3%-26.5%-18.7%-21.6%9.2%6.8%
3 Year-6.0%-24.4%-8.2%-16.4%45.6%36.2%
5 Year-39.4%-56.9%-24.8%-35.2%63.2%45.4%

Price Volatility Vs. Market

How volatile is Energy Transfer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Energy Transfer undervalued compared to its fair value and its price relative to the market?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ET ($12.55) is trading below our estimate of fair value ($12.84)

Significantly Below Fair Value: ET is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ET is poor value based on its PE Ratio (10.1x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: ET is good value based on its PE Ratio (10.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ET is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ET is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (0.9x).

Future Growth

How is Energy Transfer forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ET's forecast earnings growth (6.8% per year) is above the savings rate (2.7%).

Earnings vs Market: ET's earnings (6.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: ET's earnings are forecast to grow, but not significantly.

Revenue vs Market: ET's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ET's revenue (2.2% 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 high in 3 years time (20.1%)

Past Performance

How has Energy Transfer performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ET's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: ET's earnings growth over the past year (94.8%) exceeds its 5-year average (27.3% per year).

Earnings vs Industry: ET earnings growth over the past year (94.8%) exceeded the Oil and Gas industry 22.6%.


Return on Equity

High ROE: ET's Return on Equity (14.2%) is considered low.


Return on Assets

ROA vs Industry: ET's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: ET has significantly improved its Return on Capital Employed over the past 3 years.

Financial Health

How is Energy Transfer's financial position?


Financial Position Analysis

Short Term Liabilities: ET's short term assets ($7.2B) exceeds its short term liabilities ($6.4B)

Long Term Liabilities: ET's short term assets (7.2B) do not cover its long term liabilities (51.9B)


Debt to Equity History and Analysis

Debt Level: ET's debt to equity ratio (144.1%) is considered high

Reducing Debt: ET's debt to equity ratio has increased from 138.5% to 144.1% over the past 5 years.

Debt Coverage: ET's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: ET's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: ET has a high level of physical assets or inventory.

Debt Coverage by Assets: ET's debt is not covered by short term assets (assets are 0.2x debt).

Dividend

What is Energy Transfer's current dividend yield, its reliability and sustainability?

9.72%

Current Dividend Yield


Dividend Yield vs Market

company9.7%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years10.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ET's dividend (9.72%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ET's dividend (9.72%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: ET's dividends per share have been stable 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 high payout ratio (97.9%), ET's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ET's dividends in 3 years are forecast to be covered by earnings (83.8% payout ratio).

Management

What is the CEO of Energy Transfer's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Kelcy Warren (63yo)

1yrs

Tenure

US$6,138

Compensation

Mr. Kelcy L. Warren serves as Chief Executive Officer and Chairman of the Board of Directors at Energy Transfer Partners, L. P. (ETP) since October 2018. Mr. Warren Chief Executive Officer of Rover Pipelin ...


CEO Compensation Analysis

Compensation vs. Market: Kelcy's total compensation ($USD6.14K) is too low to compare against companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Kelcy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Management: ET's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ET's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,047,75018 Jun 19
Thomas Mason
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares75,000
Max PriceUS$13.97
BuyUS$54,97618 Jun 19
Michael Grimm
EntityIndividual
Role
Member of the Board of Directors
Director of LE GP
Shares3,888
Max PriceUS$14.14
BuyUS$295,16627 Dec 18
Thomas Long
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director of LE GP
Shares24,500
Max PriceUS$12.05
BuyUS$14,930,00020 Nov 18
Kelcy Warren
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO of LE GP
Shares1,000,000
Max PriceUS$14.93
BuyUS$4,992,80014 Nov 18
Ray Davis
EntityIndividual
Role
Member of the Board of Directors
Director of LE GP LLC
Shares316,000
Max PriceUS$15.80
BuyUS$31,090,00014 Nov 18
Kelcy Warren
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO of LE GP
Shares2,000,000
Max PriceUS$15.64

Ownership Breakdown


Management Team

  • Kelcy Warren (63yo)

    Chairman & CEO of LE GP

    • Tenure: 1yrs
    • Compensation: US$6.14k
  • John McReynolds (68yo)

    Special Advisor & Director of LE GP

    • Tenure: 14.2yrs
    • Compensation: US$1.42m
  • Mackie McCrea (60yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$10.78m
  • Tom Long (62yo)

    Group CFO & Director of LE GP

    • Tenure: 0.5yrs
    • Compensation: US$6.61m
  • Tom Mason (62yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$3.95m
  • A. Sturrock (48yo)

    Senior VP

    • Tenure: 0yrs
  • Matt Ramsey (64yo)

    COO & Director of LE GP

    • Tenure: 7.3yrs
    • Compensation: US$4.40m
  • Kevin Smith

    Executive Vice President

    • Tenure: 0yrs
  • Brad Whitehurst (44yo)

    Executive VP & Head of Tax of LE GP

    • Tenure: 5.2yrs
    • Compensation: US$3.19m
  • Brent Ratliff

    VP, Investor Relations

    • Tenure: 0yrs

Board Members

  • Ray Davis (77yo)

    Director of LE GP LLC

    • Tenure: 1.7yrs
    • Compensation: US$67.70k
  • Kelcy Warren (63yo)

    Chairman & CEO of LE GP

    • Tenure: 1yrs
    • Compensation: US$6.14k
  • Dick Brannon (60yo)

    Director of LE GP LLC

    • Tenure: 0yrs
    • Compensation: US$294.23k
  • John McReynolds (68yo)

    Special Advisor & Director of LE GP

    • Tenure: 14.2yrs
    • Compensation: US$1.42m
  • Mackie McCrea (60yo)

    President

    • Tenure: 9.8yrs
    • Compensation: US$10.78m
  • Michael Grimm (64yo)

    Director of LE GP

    • Tenure: 1yrs
  • Tom Long (62yo)

    Group CFO & Director of LE GP

    • Tenure: 0.5yrs
    • Compensation: US$6.61m
  • Matt Ramsey (64yo)

    COO & Director of LE GP

    • Tenure: 7.3yrs
    • Compensation: US$4.40m
  • Steven Anderson (69yo)

    Director of LE GP

    • Tenure: 1.3yrs
    • Compensation: US$135.96k
  • David Skidmore (63yo)

    Director

    • Tenure: 0yrs

Company Information

Energy Transfer LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Energy Transfer LP
  • Ticker: ET
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$32.968b
  • Shares outstanding: 2.63b
  • Website: https://www.energytransfer.com

Number of Employees


Location

  • Energy Transfer LP
  • 8111 Westchester Drive
  • Suite 600
  • Dallas
  • Texas
  • 75225
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETNYSE (New York Stock Exchange)YesCommon UnitsUSUSDFeb 2006
48EDB (Deutsche Boerse AG)YesCommon UnitsDEEURFeb 2006
0S1ZLSE (London Stock Exchange)YesCommon UnitsGBUSDFeb 2006

Biography

Energy Transfer LP provides energy-related services in the United States and China. The company owns and operates approximately 9,400 miles of natural gas transportation pipelines and three natural gas sto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:53
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.