ET - With Its $7.1 Billion Acquisition Complete Energy Transfer Is Now My Top Income Stock
2023-11-19 05:31:00 ET
Energy Transfer (NYSE: ET) recently closed its $7.1 billion all-equity merger with fellow master limited partnership (MLP) Crestwood Equity Partners. The deal created an even larger-scale player in the energy midstream sector, with ownership interests in more than 125,000 miles of pipelines and related assets across 41 states. It will also enhance Energy Transfer's cash flow, giving it more money to pay distributions.
I owned both MLPs before their merger. With the all-equity deal now closed, I have a much larger position in Energy Transfer, which has become my top source of investment income. Here's why I'm excited to bolster my position in the income-producing MLP.
I built up a sizable position in Crestwood Equity Partners over the years. The midstream company focused on operating gathering and processing (G&P) assets in three core oil and gas producing regions (The Williston, Powder River, and Delaware basins). It also had strategically located storage and logistics assets around the country. These businesses generated relatively stable cash flow backed by long-term contracts with oil and gas producers, which paid fixed fees as volumes flowed through Crestwood's network.
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With Its $7.1 Billion Acquisition Complete, Energy Transfer Is Now My Top Income Stock