Energy Transfer: A Stable And Less Volatile Way To Play The Energy Market Chaos

JR ResearchInvesting Group LeaderFollow5ShareSavePlay(8min)Comments(6)SummaryEnergy Transfer LP offers relative fee-based stability amid highly volatile energy markets, underpinned by 90% long-term contractual cash flows and disciplined capital spending.ET’s recent underperformance versus energy peers reflects its lower pro-cyclical exposure, but its AI infrastructure-linked growth and natural gas tailwinds support a resilient earnings outlook.Insider selling in the broader energy sector signals caution on chasing the more overexposed energy plays. ET offers investors a more stable way to play the natural gas upside.I maintain a Buy rating on ET, with a forward distribution yield of 7.3% and relative EBITDA undervaluation at 8.6x versus the industry median of 11.3x.Investors wanting to partake in the outperforming energy sector should consider infrastructure plays like ET as one of their core exposure.Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More » Alvaro Victor/iStock via Getty Images Energy Transfer: Offers Relative Fee-Based Stability Amid The Market Chaos Two weeks past the start of the ongoing Iranian War, energy stocks are leading the market by a mile. With the energy sector up by almostThis article was written byJR Research47.14K FollowersFollowJR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. My picks have consistently demonstrated market outperformance over time. My approach combines timely and sharp price action analysis with fundamentals as my foundation. I also tend to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. I run the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. My main ideas revolve around stocks with strong growth potential, and also well-beaten contrarian plays. I designed the group for investors seeking to capitalize on growth stocks with solid fundamentals, robust buying momentum, and appealing turnaround plays to generate alpha consistently. Learn moreAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.