Energy Transfer LP (ET)
ValueMarkers Composite Index
70% below intrinsic value ($64)
Energy Transfer LP (ET) — VMCI valuation read
Composite valuation read on ET: VMCI 53/100 against a Energy sector median of 50. The 3-point above-median print is the headline number for Energy Transfer LP, and at the mid-cap tier it reflects how the five pillars combine into a single decision-grade score.
Trailing 30-day insider activity for ET: nothing material on SEC EDGAR. With the Form 4 channel quiet, the price-vs-DCF gap and the trailing margin trend carry more weight in the active read.
**Investor frame.** Value, quality, risk in three lines on ET: ET trades at 25.0x earnings, 39% above the Energy median of 18.0x; ROIC of 13.0% sits 3.0pp above the Energy median (10.0%); net debt to EBITDA of 3.4x is the binding constraint on the bear case. EV/EBITDA at 14.0x versus 12.0x for Energy closes the value frame.
ET rose 1.0% over the trailing 7 days, with a -12.9% read on a 30-day basis.
Energy Transfer LP provides energy-related services. The company owns and operates approximately 11,600 miles of natural gas transportation pipeline, and three natural gas storage facilities in Texas and two natural gas storage facilities located in the state of Texas and Oklahoma; and 19,830 miles of interstate natural gas pipeline. It also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users. The company owns and operates natural gas gathering and natural gas liquid (NGL) pipeline, processing plant, and treating and conditioning facilities in Texas, New Mexico, West Virginia, Pennsylvania, Ohio, Oklahoma, Arkansas, Kansas, and Louisiana; natural gas gathering, oil pipeline, and oil stabilization facilities in South Texas; and a natural gas gathering system in Ohio, as well as transport and supplies water to natural gas producer in Pennsylvania. It owns approximately 5,215 miles of NGL pipeline; NGL and propane fractionation facilities; NGL storage facilities with working storage capacity of approximately 50 million barrels (MMBbls); and other NGL storage assets and terminal with an aggregate storage capacity of approximately 17 MMBbls. The company provides crude oil transportation, terminalling, acquisition, and marketing activities; and sells and distributes gasoline, middle distillate, and motor fuels and other petroleum product. It offers natural gas compression service; carbon dioxide and hydrogen sulfide removal, natural gas cooling, dehydration, and British thermal unit management service; and manages coal and natural resources properties, as well as sells standing timber, leases coal-related infrastructure facilities, collects oil and gas royalty, and generate electrical power. The company was formerly known as Energy Transfer Equity, L.P. and changed its name to Energy Transfer LP in October 2018. The company was founded in 1996 and is headquartered in Dallas, Texas.
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