Energy Transfer: Natural Gas Boom Meets 8% Yield
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Dair Sansyzbayev9.76K FollowersFollow5ShareSavePlay(9min)CommentsSummaryEnergy Transfer LP (ET) offers the best-in-class forward distribution yield, appealing for income-focused investors. Aggressive natural gas infrastructure expansion positions the company to capture structural tailwinds from LNG exports and AI revolution. ET appears deeply undervalued with 23% upside potential while offering an attractive 8% distribution yield. Both common units and Series I Preferred Units remain Strong Buy opportunities for income-focused investors. Thank you for your assistant/iStock via Getty Images The best part of investing in America's largest midstream players like Energy Transfer LP (ET) is that you are getting an extremely attractive forward dividend [or distribution in ET's case] yield andThis article was written byDair Sansyzbayev9.76K FollowersFollowI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity research and analysis of public companies. This interest has led me to render equity research services for a Dubai-based family office with over $20 million in assets under management (AUM). My expertise in finance allows me to provide valuable insights and recommendations to clients seeking to make informed investment decisions.I pride myself on my ability to analyze financial statements, evaluate market trends, and identify key drivers of growth in different industries. I am passionate about staying up-to-date on the latest developments and trends in the equity research industry, and I am always seeking to enhance my skills and knowledge through continuing education and professional development.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.Quick InsightsHow does ET's forward distribution yield compare to peers?ET provides an almost 8% forward distribution yield, notably higher than other midstream players of comparable size.What recent developments support ET's current valuation?Stable Q3 results with margin expansion, $9.6 billion growth investment plan funded without balance sheet deterioration, and strong positioning for natural gas demand growth from LNG exports and AI infrastructure.What are the key risks highlighted for ET investors?Main risks include economic slowdown reducing natural gas demand, tightening environmental regulations, and continued weak price momentum despite strong fundamentals.Recommended For You