ET - This 9.2%-Yielding Dividend Stock's Growth Pipeline Is About to Get Much Bigger
2023-11-09 07:45:00 ET
Energy Transfer (NYSE: ET) has grown into a behemoth in the energy midstream sector. The pipeline company is an active acquirer and developer of midstream assets. That expansion has enabled the master limited partnership (MLP) to pay a sizable distribution (currently yielding 9.2%) that it aims to increase over time.
The MLP currently has a decent expansion project backlog, with plans to invest a little less than $2 billion on growth capital projects this year. It has already secured a few projects for 2024 and beyond and has even more growth opportunities in the pipeline. That could give it the fuel to continue growing its cash flow and distribution in the coming years.
Growth was a key topic of conversation on Energy Transfer's third-quarter conference call . Co-CEO Tom Long discussed several of the projects the company has in the pipeline, noting, " We continue to evaluate a number of other potential growth projects that we hope to bring to FID [Final Investment Decision]. ... As we look forward to our potential backlog of high-returning growth projects, we continue to expect our long-term annual growth capital run rate to be approximately $2 billion to $3 billion."
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This 9.2%-Yielding Dividend Stock's Growth Pipeline Is About to Get Much Bigger