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ET

Energy TransferNYSE:ET Stock Report

Market Cap

US$26.7b

7D

-1.1%

1Y

56.8%

Updated

22 Oct, 2021

Data

Company Financials +
ET fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

ET Overview

Energy Transfer LP provides energy-related services.

Energy Transfer Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Energy Transfer
Historical stock prices
Current Share PriceUS$9.88
52 Week HighUS$4.98
52 Week LowUS$11.55
Beta2.37
1 Month Change6.81%
3 Month Change-1.20%
1 Year Change56.83%
3 Year Change-36.09%
5 Year Change-34.53%
Change since IPO74.48%

Recent News & Updates

Oct 08

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.

Sep 27

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.

Sep 21

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.

Sep 13

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).

Sep 01

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?

Shareholder Returns

ETUS Oil and GasUS Market
7D-1.1%0.6%2.6%
1Y56.8%85.8%31.1%

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.

Price Volatility

Is ET's price volatile compared to industry and market?
ET volatility
ET Beta2.37
Industry Beta1.74
Market Beta1

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

FoundedEmployeesCEOWebsite
199611,421Mackie McCreahttps://energytransfer.com

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

How do Energy Transfer's earnings and revenue compare to its market cap?
ET fundamental statistics
Market CapUS$26.72b
Earnings (TTM)US$3.68b
Revenue (TTM)US$52.09b

7.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ET income statement (TTM)
RevenueUS$52.09b
Cost of RevenueUS$38.65b
Gross ProfitUS$13.43b
ExpensesUS$9.76b
EarningsUS$3.68b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)1.36
Gross Margin25.79%
Net Profit Margin7.06%
Debt/Equity Ratio128.4%

How did ET perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

>50%

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).


Future Growth

How is Energy Transfer forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-14.5%

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%).


Past Performance

How has Energy Transfer performed over the past 5 years?

10.5%

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.


Financial Health

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).


Balance Sheet


Dividend

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

6.17%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Mackie McCrea (62 yo)

0.75

Tenure

US$7,572,984

Compensation

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.


Leadership Team

Experienced Management: ET's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ET's board of directors are considered experienced (3.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • 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


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 23:04
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.