NYSE:ET

Stock Analysis Report

Executive Summary

Energy Transfer LP provides energy-related services.

Rewards


Snowflake Analysis


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

Stable Share Price: ET's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

ET

5.9%

US Oil and Gas

7.2%

US Market


1 Year Return

-70.8%

ET

-56.4%

US Oil and Gas

-10.4%

US Market

Return vs Industry: ET underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: ET underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

ETIndustryMarket
7 Day-5.6%5.9%7.2%
30 Day-59.1%-35.6%-12.6%
90 Day-64.7%-51.6%-19.4%
1 Year-68.0%-70.8%-54.6%-56.4%-8.5%-10.4%
3 Year-70.4%-76.5%-51.8%-56.5%15.8%8.3%
5 Year-79.2%-85.7%-55.3%-62.2%35.8%21.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ET ($4.77) is trading below our estimate of fair value ($15)

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 (3.5x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: ET is good value based on its PE Ratio (3.5x) compared to the US market (13x).


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 overvalued based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.5x).

Future Growth

How is Energy Transfer forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-0.8%

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 (-0.8% per year).

Earnings vs Market: ET's earnings are forecast to decline over the next 3 years (-0.8% per year).

High Growth Earnings: ET's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ET's revenue (1.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ET's revenue (1.9% 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%).

Past Performance

How has Energy Transfer performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ET has high quality earnings.

Growing Profit Margin: ET's current net profit margins (6.6%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: ET's earnings have grown significantly by 28% per year over the past 5 years.

Accelerating Growth: ET's earnings growth over the past year (86.6%) exceeds its 5-year average (28% per year).

Earnings vs Industry: ET earnings growth over the past year (86.6%) exceeded the Oil and Gas industry -11.4%.


Return on Equity

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

Financial Health

How is Energy Transfer's financial position?


Financial Position Analysis

Short Term Liabilities: ET's short term assets ($7.9B) exceed its short term liabilities ($7.7B).

Long Term Liabilities: ET's short term assets ($7.9B) do not cover its long term liabilities ($56.6B).


Debt to Equity History and Analysis

Debt Level: ET's debt to equity ratio (147.5%) is considered high.

Reducing Debt: ET's debt to equity ratio has increased from 136.5% to 147.5% over the past 5 years.

Debt Coverage: ET's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: ET's interest payments on its debt are not well covered by EBIT (2.9x 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?

26.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ET's dividend (25.58%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: ET's dividend (25.58%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

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: At its current payout ratio (89.4%), ET's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ET's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).

Management

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

4.3yrs

Average management tenure


CEO

Kelcy Warren (63yo)

1.42s

Tenure

US$6,156

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 is the Chief Executive Officer and Direc ...


CEO Compensation Analysis

Compensation vs Market: Kelcy's total compensation ($USD6.16K) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kelcy Warren
Chairman & CEO of LE GP1.42yrsUS$6.16k9.63% $1.2b
Marshall McCrea
President10.25yrsUS$11.60m0.14% $17.0m
Thomas Long
Group CFO & Director of LE GP0.83yrUS$4.85m0.030% $3.7m
Matthew Ramsey
COO & Director of LE GP7.67yrsUS$4.72m0.030% $3.6m
Thomas Mason
Executive VP4.25yrsUS$4.19m0.036% $4.4m
A. Sturrock
Senior VPno datano data0.0063% $770.1k
Brent Ratliff
VP, Investor Relationsno datano datano data
Bradford Whitehurst
Executive VP & Head of Tax of LE GP5.58yrsUS$3.19mno data
Kevin Smith
Executive Vice Presidentno datano datano data
John McReynolds
Special Advisor & Director of LE GP14.58yrsUS$1.42m1.12% $137.0m

4.3yrs

Average Tenure

62yo

Average Age

Experienced Management: ET's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kelcy Warren
Chairman & CEO of LE GP1.42yrsUS$6.16k9.63% $1.2b
Marshall McCrea
President10.25yrsUS$11.60m0.14% $17.0m
Thomas Long
Group CFO & Director of LE GP0.83yrUS$4.85m0.030% $3.7m
Matthew Ramsey
COO & Director of LE GP7.67yrsUS$4.72m0.030% $3.6m
John McReynolds
Special Advisor & Director of LE GP14.58yrsUS$1.42m1.12% $137.0m
Ray Davis
Director of LE GP LLC2yrsUS$200.00k3.2% $389.8m
Richard Brannon
Independent Director of LE GP LLCno dataUS$222.50k0.015% $1.8m
Michael Grimm
Independent Director of LE GP1.42yrsUS$230.00k0.0048% $586.1k
Steven Anderson
Independent Director of LE GP1.67yrsUS$222.50k0.058% $7.0m
Ray Washburne
Independent Director of LE GP0.83yrUS$81.88kno data

2.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ET's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 84.6%.


Top Shareholders

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$12.185b
  • Shares outstanding: 2.69b
  • 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
ET *BMV (Bolsa Mexicana de Valores)YesCommon UnitsMXMXNFeb 2006

Biography

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 12,500 miles of interstate natural gas pipelines. It sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. The company also owns and operates natural gas gathering and natural gas liquid (NGL) pipelines, processing plants, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Kansas, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and a natural gas gathering system in Ohio, as well as transports and supplies water to natural gas producers in Pennsylvania. In addition, it owns approximately 4,515 miles of NGL pipelines; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminals with an aggregate storage capacity of approximately 13 MMBbls. Further, the company sells gasoline, middle distillates, and motor fuel at retail, as well as crude oil, NGLs, and refined products; operates convenience stores; and distributes motor fuels and other petroleum products. Additionally, it provides natural gas compression services; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management services; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalties, and generates electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. Energy Transfer LP was founded in 2002 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:03
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.