ET - Energy Transfer: Measure What Matters
2024-06-05 02:23:29 ET
Summary
- Energy Transfer common units remain a sound long-term investment due to consistently outstanding free cash flow, significant value creation by management, and relatively low valuation.
- Key metrics to evaluate Energy Transfer's performance include free cash flow yield, return-on-invested capital, and enterprise value-to-EBITDA valuation.
- In this article, I offer investors a 1Q2024 update on key financial and valuation metrics. These may provide you with a solid springboard for future common unit evaluation and monitoring.
For over a dozen years, I've written you about Energy Transfer ( ET ) units. My primary objective has to provide objective, actionable investment information about the company.
Investment Thesis
At the current juncture, Energy Transfer common units remain a sound, long-term investment. Here are three bullet points supporting the view:
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The business generates consistently outstanding free cash flow
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Management is creating significant unitholder value
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The common units remain relatively inexpensive