Energy Transfer (ET) AI Stock Analysis

• Market Cap: $59.87B
• Dividend Yield: 7.36%
• Average Volume (3M): 16.42M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.70
• Revenue Growth: 5.20%
• EPS Growth: 18.35%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.28
• Shares Outstanding: 3,431,214,800
• 10 Day Avg. Volume: 12,645,361
• 30 Day Avg. Volume: 16,423,386
• PEG Ratio: 0.74
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.77
• Price to Cash Flow (P/CF): 6.20
• P/FCF Ratio: 9.80
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.22
• Price Target Upside: 33.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Energy Transfer's strong financial performance and positive earnings call outlook are key strengths, contributing significantly to the overall score. While its valuation is attractive, technical indicators suggest caution due to bearish trends. The company’s strategic investments and high dividend yield further support a favorable long-term growth trajectory.

Positive Factors

Data Center Supply Agreements

ET is optimistic about signing more deals to supply data centers, following an agreement to supply CloudBurst's data center development in Central Texas.

Distribution Growth

Raising the price target to $22/unit primarily reflects a faster long-term distribution growth.

Growth Acceleration

ET's FY25 growth capex guidance of ~$5bn is considered a significant investment in growth acceleration, even before data center projects are added to the backlog.

Negative Factors

Capex Spending

The major point of contention is the $5bn growth capex, which is above previous growth capex spend of $2-$3bn per year.

EBITDA Performance

Q4 EBITDA of $3,884MM was slightly below Consensus of $3,978MM and our estimate of $4,002MM.

Free Cash Flow

ET projects to outspend free cash flow after distributions by $0.5B in 2025.

Energy Transfer Business Overview & Revenue Model

Company Description

Energy Transfer LP provides energy-related services. The company owns and operates approximately 11,600 miles of natural gas transportation pipeline, and three natural gas storage facilities in Texas and two natural gas storage facilities located in the state of Texas and Oklahoma; and 19,830 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. The company owns and operates natural gas gathering and natural gas liquid (NGL) pipeline, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, 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 transport and supplies water to natural gas producer in Pennsylvania. It owns approximately 5,215 miles of NGL pipeline; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminal with an aggregate storage capacity of approximately 17 MMBbls. The company provides crude oil transportation, terminalling, acquisition, and marketing activities; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum product. It offers natural gas compression service; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management service; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 1996 and is headquartered in Dallas, Texas.

How the Company Makes Money

Energy Transfer makes money primarily through fee-based agreements for the transportation and storage of energy commodities such as natural gas, crude oil, and NGLs. The company operates an extensive network of pipelines and terminals, generating revenue by charging customers for the volume of products transported or stored. Key revenue streams include interstate and intrastate natural gas transportation, crude oil pipelines, and NGL logistics. Additionally, Energy Transfer benefits from its retail and marketing operations, which involve selling refined products and providing fuel distribution services. The company also engages in strategic partnerships and joint ventures to expand its infrastructure and enhance its service offerings, further contributing to its earnings. Market demand, regulatory factors, and energy prices significantly impact Energy Transfer's revenue, making it important for the company to maintain operational efficiency and strategic growth to sustain its profit margins.

Energy Transfer Financial Statement Overview

Summary

Energy Transfer demonstrates strong financial health with impressive revenue growth and improved profitability. Although the increase in leverage is a concern, the company's effective cash management and growth position it well in the fossil fuels industry.

Income Statement

Energy Transfer has shown solid revenue growth with an increase from $78.59 billion in 2023 to $82.67 billion in 2024. Gross profit margin improved to 25.04% from 17.38% in the previous year, indicating enhanced operational efficiency. The net profit margin also strengthened to 5.82%, reflecting better cost management. However, EBITDA margin declined slightly to 8.94% from 15.99%, which warrants attention.

Balance Sheet

The company's debt-to-equity ratio decreased to 1.75 from 1.45, which indicates higher leverage and potential risk. The equity ratio improved significantly to 72.73%, reflecting stronger equity financing. ROE also increased to 10.46%, showing improved profitability from shareholder investments.

Cash Flow

Energy Transfer's free cash flow grew impressively by 79.12%, driven by robust operating cash flow. The operating cash flow to net income ratio is strong at 2.39, highlighting good cash generation relative to net income. The free cash flow to net income ratio also improved to 2.39, indicating efficient cash utilization.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
82.67B	78.59B	89.88B	67.42B	38.95B
	Gross Profit
15.53B	13.66B	13.48B	13.21B	9.79B
	EBIT
9.14B	8.29B	4.31B	5.32B	2.31B
	EBITDA
15.40B	12.56B	12.29B	12.63B	9.54B
	Net Income Common Stockholders
4.81B	3.94B	4.76B	5.47B	140.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
312.00M	161.00M	257.00M	336.00M	367.00M
	Total Assets
125.38B	113.70B	105.64B	105.96B	95.14B
	Total Debt
60.56B	53.22B	49.11B	50.57B	52.33B
	Net Debt
60.25B	53.06B	48.85B	50.23B	51.96B
	Total Liabilities
78.95B	68.98B	64.49B	65.83B	62.99B
	Stockholders Equity
35.12B	36.68B	33.03B	31.30B	18.54B
Cash Flow		Free Cash Flow
7.34B	6.42B	5.67B	8.34B	2.23B
	Operating Cash Flow
11.51B	9.55B	9.05B	11.16B	7.36B
	Investing Cash Flow
-5.90B	-4.33B	-4.02B	-2.77B	-4.90B
	Financing Cash Flow
-5.45B	-5.33B	-5.11B	-8.42B	-2.39B

Energy Transfer Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ET, the sentiment is Neutral. The current price of 17.45 is above the 20-day moving average (MA) of 17.15, below the 50-day MA of 18.17, and above the 200-day MA of 17.34, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 84.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ET.

Energy Transfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	84 Outperform	$53.74B	12.49	31.78%	6.87%	4.30%	10.45%
ET	79 Outperform	$59.87B	13.59	13.40%	7.36%	5.20%	18.35%
WMB	72 Outperform	$72.06B	32.49	17.92%	3.26%	8.06%	-30.11%
KMI	70 Outperform	$59.66B	23.21	8.43%	4.28%	2.02%	5.40%
EPD	67 Neutral	$67.61B	11.72	20.78%	6.73%	12.71%	6.74%
OKE	63 Neutral	$53.91B	16.68	18.11%	4.63%	24.16%	-6.58%
Sector *	55 Neutral	$7.10B	3.56	-6.61%	5.99%	-0.03%	-51.61%

Energy Transfer Corporate Events

Energy Transfer Increases Quarterly Cash Distribution

On April 23, 2025, Energy Transfer LP announced an increase in its quarterly cash distribution to $0.3275 per common unit for the quarter ended March 31, 2025, marking a more than 3% increase compared to the previous year. This distribution will be paid on May 20, 2025, to unitholders of record as of May 9, 2025. The announcement reflects positively on the company’s financial performance and may enhance its attractiveness to investors, reinforcing its strong position in the energy sector.

Spark’s Take on ET Stock

According to Spark, TipRanks’ AI Analyst, ET is a Outperform.

Energy Transfer’s strong financial performance and positive earnings call outlook are key strengths, contributing significantly to the overall score. While its valuation is attractive, technical indicators suggest caution due to bearish trends. The company’s strategic investments and high dividend yield further support a favorable long-term growth trajectory.

To see Spark’s full report on ET stock, click here.

Energy Transfer to Host Investor Sessions in Houston

Energy Transfer LP announced that its management will hold informational sessions with investors and analysts at two conferences in Houston on March 4-5, 2025. These sessions will provide an overview of the company’s business segments and growth projects, potentially impacting its operations and market positioning.