Shares of Energy Transfer (NYSE:ET) fell about 2% on Wednesday’s extended trade after the company’s fourth-quarter results missed estimates. Nevertheless, the company’s overall performance shows improvement when compared to the prior-year quarter.
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Energy Transfer is a provider of natural gas pipeline transportation and transmission services.
The company’s Q4 net income per unit of $0.34 compared favorably with $0.29 in the prior-year quarter. The reported figure, however, was below Wall Street’s earnings estimate of $0.39.
Further, revenue increased by about 10% to $20.5 billion but lagged analysts’ expectations of $23.2 billion. The upside can be attributed to higher volumes across all of the company’s segments and the positive impacts of the Enable Midstream acquisition (completed in December 2021).
Looking forward, Energy Transfer expects to report full-year 2023 adjusted EBITDA in the range of $12.9 billion and $13.3 billion, compared to $13.1 billion in 2022.
Is Energy Transfer a Good Stock?
The company’s ability to generate strong cash flows supports its potential shareholder return. Last month, Energy Transfer announced a fifth consecutive dividend hike. The stock has an impressive dividend yield of 6.72%, higher than the sector’s average of 1.64%.
Overall, the Street is bullish on the stock with a Strong Buy consensus rating. This is based on five unanimous Buy recommendations. The average ET stock price target of $16.60 implies upside potential of 26.3%. Shares have gained 15.8% so far in 2023.
