Energy Transfer (ET) AI Stock Analysis

• Market Cap: $54.25B
• Dividend Yield: 8.13%
• Average Volume (3M): 17.70M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.67
• Revenue Growth: 1.04%
• EPS Growth: 22.31%
• Country: US
• Employees: 16,248
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.36
• Shares Outstanding: 3,431,214,800
• 10 Day Avg. Volume: 14,136,696
• 30 Day Avg. Volume: 17,697,633
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.64
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.00
• Price Target Upside: 45.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Energy Transfer's overall stock score of 76 reflects its robust financial performance, strategic growth initiatives, and attractive valuation. Significant strengths include strong revenue growth, profitability, and cash management. While technical indicators suggest caution due to bearish trends, the company's high dividend yield and strategic investments enhance its long-term growth potential. Recent corporate events, like the increased cash distribution, further bolster investor confidence.

Positive Factors

Growth Opportunities

Management expects to make a significant data center and power generation announcement soon, indicating potential growth opportunities.

Market Position

Energy Transfer Equity is the first midstream company to announce a potential behind-the-meter supply agreement directly with a data center company.

Strategic Investments

ET significantly raised 2025 capex on a growing organic backlog.

Negative Factors

Capex Concerns

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

Financial Outlook

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

Volume Growth

The analyst is lowering volume growth forecasts due to slower expected growth in the midstream and crude oil segments.

Energy Transfer Business Overview & Revenue Model

Company Description

Energy Transfer (ET) is a leading energy company operating in the oil and gas industry, primarily focused on the transportation, storage, and retail of natural gas, crude oil, natural gas liquids (NGLs), and refined products. The company boasts an extensive network of pipelines and terminals across North America, facilitating the efficient movement and distribution of energy resources. Energy Transfer's core services include pipeline transportation, logistics, and storage, supporting various sectors such as residential, commercial, industrial, and energy production, thus playing a crucial role in the energy supply chain.

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 shows strong financial health with robust revenue growth and improved profitability margins. The balance sheet reflects a solid equity base, though increased leverage poses potential risk. Cash flow metrics are very strong, highlighting effective cash management and growth potential.

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: 15.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 15.81 is below the 20-day moving average (MA) of 16.78, below the 50-day MA of 17.68, and below the 200-day MA of 17.38, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 is Neutral, 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	81 Outperform	$53.04B	12.32	32.54%	7.26%	5.53%	11.29%
ET	76 Outperform	$54.25B	12.61	13.53%	8.13%	1.04%	22.31%
OKE	74 Outperform	$49.53B	15.65	16.04%	5.04%	40.55%	19.24%
KMI	73 Outperform	$60.46B	23.23	8.43%	4.24%	2.02%	5.40%
WMB	71 Outperform	$71.67B	32.28	18.32%	3.28%	8.63%	-20.98%
EPD	70 Outperform	$64.86B	11.27	20.78%	7.08%	9.03%	―
Sector *	56 Neutral	$6.93B	3.23	-4.86%	5.94%	0.12%	-48.32%

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.