Robert LauzonEnergy Transfer LPETCOMMENTApr 10, 2023

Stockchase Research Editor: Michael O'Reilly

We again reiterate this energy infrastructure LP, where the company holds a strong market position.  It trades at 13x earnings, 1.4x book and supports a 12% ROE.  Cash reserves are growing, while debt is aggressively retired and it maintains a brilliant dividend.  We continue to recommend a stop at $13, looking to achieve $17 -- upside potential of 21%.  Yield 8.9%    

(Analysts’ price target is $17.75)

(A Top Pick Apr 13/23, Up 12.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ET is progressing well. To remain disciplined, we recommend trailing up the stop (from $11.50) to $13.00 at this time.  

Stockchase Research Editor: Michael O'Reilly

We reiterate ET as a TOP PICK.   The company has been aggressively retiring debt bringing it back into their target range of under 4.5x debt-to-EBITDA.  It pays a great dividend, backed by a payout ratio under 65% of cash flow.  It trades 9x earnings and 1.2x book value.  We recommend maintaining the stop at $11.50, looking to achieve $16 -- upside potential of 23%.  Yield 7.9%

(Analysts’ price target is $16.75)

Stockchase Research Editor: Michael O'Reilly

We again reiterate ET, one of the largest midstream energy companies in the world and who exports 20% of global natural gas liquids, as a TOP PICK.  Earnings tomorrow should confirm recent acquisition assets and existing investment in their coastal terminals are buzzing with activity.  It trades at 1.2x book value and 10x earnings.  We like how they have aggressively been retiring debt.  The dividend yield is excellent and supported by a payout ratio under 60% of cash flow. We recommend trailing up the stop-loss (from $10.75) to $11.50, looking to achieve $16.50 -- upside potential over 24%. Yield 6.7%

(Analysts’ price target is $16.50)

Stockchase Research Editor: Michael O'Reilly We again reiterate ET as a TOP PICK. Energy security and infrastructure will surely be a top priority of Biden Administration in the aftermath of Russia's invasion of Ukraine. ET is one of the largest midstream energy companies in the world and exports 20% of global natural gas liquids. Management has a good track record of success. The dividend yield is strong and supported by a payout ratio under 80% of cash flow. We recommend trailing up the stop-loss (from $9.50) to $10.75, looking to achieve $15.50 -- upside potential over 30%. Yield 8.9% (Analysts’ price target is $15.67)

Energy Transfer Operating, L.P. owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. Energy Transfer Operating, L.P. also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP , and the general partner interest and 39.7 million common units of USA Compression Partners, LP. Social media mentions are up 71% in the past 24h.

Stockchase Research Editor: Michael O'Reilly We again reiterate ET, an energy services company operating a network of natural gas pipelines and storage facilities in the US, as a TOP PICK. The company plans to spend about $2 billion in organic growth projects, including converting its Lake Charles, LA facility into a LNG export facility. Distributions increased 70% over the year, yet the company still manages a payout ratio under 75% of cash flow. Cash reserves continue to grow, while the company aggressively retires debt and buys back shares. It presently trades at 1.2x book value and at only 10x earnings. Its dividend yield is high, backed by payout ratio under 75% of cash flow. We recommend keeping the trailing stop set at $9.50, looking to achieve $16.00 -- upside potential over 23%. Yield 7.3% (Analysts’ price target is $15.88)