ET - Energy Transfer: Dead Capital Leverage Shorts And Take Under Considerations
In this quarterly writeup, I'll stray from simply recapping Energy Transfer's (ET) third-quarter results. As has been the case for the last several quarters, the numbers were quite solid. Distributable cash flow, operating cash flow, and EBITDA continue to rise. Leverage is trending down. Liquidity is strong.
For this edition, let's review several ancillary items:
- Does “dead capex,” or spent capital that isn't providing any meaningful cash returns, contributing to subpar return-on-invested-capital versus peers? Energy Transfer continues to record lower RoIC than peers.
- How's management doing on the leverage front? They made it