Energy Transfer: A Stock With Many Problems And Misconceptions
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Bruno Montoya Amador19 FollowersFollow5ShareSavePlay(11min)Comments(2)SummaryEnergy Transfer LP is rated Sell due to excessive complexity, overreliance on crude oil prices, and persistent underperformance.ET’s natural gas exposure is only 7% of revenue, making it a poor play on rising electricity and data center demand.Political catalysts and deregulation are too unpredictable, while major projects like Lake Charles LNG face years-long delays and uncertain economics.My DCF suggests ET appears undervalued, but low oil prices and weak catalysts undermine the margin of safety and long-term outlook.Cristian Martin/iStock Editorial via Getty Images Introduction For the past year or so, there has been a lot of praise among analysts about this stock. There are many arguments that justify a Buy or even a Strong Buy, and at some point, I alsoThis article was written byBruno Montoya Amador19 FollowersFollowI am a full-time equity analyst and the co-founder of Mina Vista Capital Management, a hedge fund that my business partner, William Hazen, and I started. I look for long-term investment opportunities with a focus on fundamentals. I’ve done extensive research on industries such as energy, technology, and homebuilding, and I’m continuing to expand my knowledge. I find discussions with other analysts, especially when we hold opposing views, very constructive to both of our theses. If you have a different view on any of the companies I cover, send me a message on X and I’ll be happy to discuss.Analyst’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.