FANG - Energy Transfer: Another Acquisition To Fuel Growth

2024-07-12 08:02:01 ET

Summary

• Energy Transfer LP has been producing strong growth over the past few years due to a substantial number of growth projects.
• These acquisitions have contributed to cash flow growth, which has been one reason why the company has outperformed the S&P 500 Index over the past five years.
• The announced acquisition of WTG Midstream Holdings is expected to boost distributable cash flow and provide growth opportunities in the Permian Basin.
• Energy Transfer currently trades at a discount to its peers and to the market as a whole.
• The company continues to look like a good way to earn an attractive yield from the energy sector.

Energy Transfer LP ( ET ) is a giant midstream master limited partnership that has managed to earn itself a very good reputation over the past few years. This is probably at least partially due to the strong growth that the company has managed to deliver via a series of acquisitions in the energy sector. According to Mergr.com , a website that tracks mergers & acquisitions activities in the United States, Energy Transfer has acquired twelve companies throughout its history. It has ramped up its acquisition activities ever since the pandemic, though, as the company has acquired six companies in the past five years alone. The largest of these was the Enable Midstream acquisition in 2021, which greatly expanded Energy Transfer's operations in Oklahoma, Arkansas, and Louisiana....

For further details see: