Energy Transfer LP (ET, Financial) has announced a rise in its quarterly cash distribution to 32.75 cents per common unit for the first quarter ending March 31, 2025. This marks an increase of over 3% from the first quarter of the previous year, 2024.
The distribution will be paid to unitholders on May 20, 2025. Those holding units as of the close of business on May 9, 2025, will be eligible to receive the payment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Energy Transfer LP (ET, Financial) is $23.23 with a high estimate of $26.00 and a low estimate of $20.00. The average target implies an upside of 35.84% from the current price of $17.10. More detailed estimate data can be found on the Energy Transfer LP (ET) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Energy Transfer LP's (ET, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Energy Transfer LP (ET, Financial) in one year is $13.25, suggesting a downside of 22.51% from the current price of $17.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Energy Transfer LP (ET) Summary page.
Key Business Developments
Release Date: February 11, 2025
- Adjusted EBITDA (Full Year 2024): $15.5 billion, up 13% over 2023.
- Distributable Cash Flow (DCF) (Full Year 2024): $8.4 billion, up 10% over 2023.
- Adjusted EBITDA (Q4 2024): $3.9 billion, compared to $3.6 billion in Q4 2023.
- DCF (Q4 2024): $2 billion, consistent with Q4 2023.
- Organic Growth Capital Expenditure (Full Year 2024): Approximately $3 billion.
- NGL & Refined Products Adjusted EBITDA (Q4 2024): $1.1 billion, compared to $1.04 billion in Q4 2023.
- Midstream Adjusted EBITDA (Q4 2024): $705 million, compared to $674 million in Q4 2023.
- 2025 Adjusted EBITDA Guidance: Between $16.1 billion and $16.5 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Energy Transfer LP (ET, Financial) reported a record adjusted EBITDA of $15.5 billion for 2024, marking a 13% increase over 2023.
- The company achieved record volumes across its Interstate, Midstream, NGL, and Crude segments, as well as record NGL exports from its terminals.
- Energy Transfer LP (ET) is investing in significant growth projects, including the Hugh Brinson pipeline and the Flexport expansion, which are expected to enhance capacity and service offerings.
- The company has entered into a 20-year LNG sale and purchase agreement with Chevron, indicating strong commercial progress for its Lake Charles LNG project.
- Energy Transfer LP (ET) is well-positioned to capitalize on the anticipated rise in natural gas demand, particularly with its extensive infrastructure and new partnerships with data centers like CloudBurst.
Negative Points
- Despite strong financial performance, the company faces potential challenges from increased competition in the NGL pipeline and export space, which could impact returns.
- The Waha basis spread is expected to compress in 2025, which could pose a headwind to financial performance.
- Energy Transfer LP (ET) is undertaking significant capital expenditures, with $5 billion planned for 2025, which may limit flexibility for other capital return strategies like buybacks.
- The company is renegotiating older SPAs for its Lake Charles LNG project due to rising costs, which could impact project economics.
- There is uncertainty around the timing and full realization of synergies from recent acquisitions, which may affect near-term financial outcomes.
