Energy Transfer Is Too Cheap To Ignore

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(13min)Comment(1)SummaryEnergy Transfer remains a 'Strong Buy' due to its deep value, high yield, and robust asset base despite recent underperformance.ET trades at significant discounts to peers on cash flow and EBITDA multiples, with potential upside between 67% and 158% if re-rated.Current yield stands at 7.9% with low net leverage (3.72), supporting a strong risk/reward profile and ongoing distributions.Management is prioritizing financial discipline by reducing growth capex yet remains optimistic about long-term growth from data center and export demand.Peter Schaefer/iStock via Getty Images One of my absolute favorite companies to write about is midstream/pipeline operator Energy Transfer (ET). Lately, this company has been underperforming even though it is an industry-leading cash cow with a lot of safetyThis article was written byDaniel Jones36.03K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.