ET - Energy Transfer: Strong Q1 2024 Shows The Company's Growth Story Continues

2024-05-09 18:47:27 ET

Summary

• Energy Transfer LP reported mixed earnings results for Q1 2024, beating revenue expectations but missing on earnings.
• Despite the earnings miss, the market remained unfazed, and the stock continued to steadily move upward.
• Energy Transfer's growth trajectory has been driven by substantial merger and acquisition activity, and the company plans to continue growing through strategic acquisitions.
• The company's debt and interest expense continues to increase, but its growing cash flow appears sufficient to continue to cover it.
• The company should not have any trouble maintaining its current 7.82% yield.

On Wednesday, May 8, 2024, giant midstream master limited partnership Energy Transfer LP ( ET ) announced its first quarter 2024 earnings results. At first glance, these earnings results were mixed, as Energy Transfer managed to beat the expectations of its analysts in terms of top-line revenues but still missed on earnings:

The market generally appeared to be rather unfazed by the earnings miss, which is a surprise considering that most companies that announced earnings misses during the past few weeks have been punished severely. The trend has been so prevalent that Zero Hedge even did an article about it a week or so ago. In the case of Energy Transfer, however, the market seems to be taking this in stride, as the Thursday trading session following the announcement of the company’s earnings shows nothing out of the ordinary:

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