ET - Some Thoughts About Energy Transfer's Performance In 2020 And 2021
- Energy Transfer beat EBITDA guidance for 2020, and ET's operations in 2020 fully funded ET's distributions and capex, making a little free cash flow in 2020.
- Energy Transfer is guiding to an even better EBITDA in 2021, ranging from $10.6 to $11 billion (my own prediction is $11.1 to $11.2 billion).
- ET's debt metrics have bottomed out and will improve sequentially in all quarters of 2021 leading to an improved credit rating by the end of 2021.
- Although the market disagrees with me, I believe the concern about DAPL shutting down is a nothingburger.
- With a 9% tax-advantaged yield that is covered more than 3X, I think ET is a very good value at $6.79, where it is trading now.
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Some Thoughts About Energy Transfer's Performance In 2020 And 2021