Energy Transfer LP: Strong Performance and Strategic Initiatives Drive Growth#
Energy Transfer LP (ET) is strategically navigating a dynamic market, showcasing strong financial performance and key initiatives that are poised to drive future growth. As of March 3, 2025, ET exhibits a price of $19.40, reflecting a +0.57% intraday change, according to Monexa AI. This report provides a comprehensive, intraday snapshot of the latest developments and corporate events affecting the company, offering insights into its business strategies, industry impact, and market context.
Latest Developments#
Key Business Initiatives#
Energy Transfer LP (ET) has been actively pursuing several key business initiatives to bolster growth and enhance shareholder value. Recent announcements highlight the company's strategic focus on expanding its operational footprint and financial strength.
On January 27, 2025, ET announced a +3.2% increase in its quarterly cash distribution, setting it at $0.3250 per unit, or $1.30 on an annualized basis, according to the company's press release. This increase underscores ET’s commitment to delivering value to its unitholders and reflects the company's robust financial health. The distribution will be paid on February 19, 2025, to unitholders of record as of February 7, 2025.
Further strengthening its financial position, on February 18, 2025, ET announced the pricing of $3.0 billion in senior notes, according to the company's press release. This offering includes $650 million of 5.200% senior notes due 2030, $1.250 billion of 5.700% senior notes due 2035, and $1.100 billion of 6.200% senior notes due 2055. The proceeds from this offering are earmarked for refinancing existing debt, a strategic move that could lead to reduced interest expenses and enhanced financial flexibility.
Expanding its operational reach, on February 10, 2025, ET announced a long-term agreement with CloudBurst Data Centers to supply natural gas to CloudBurst's AI-focused data center development in Central Texas. The agreement stipulates that ET's Oasis Pipeline, LP will provide up to 450,000 MMBTU per day of firm natural gas supply to CloudBurst's next-gen data center campus outside of San Marcos, Texas. This partnership highlights ET’s strategic foray into supporting the energy-intensive data center industry.
Financial Performance Overview#
ET's financial results for the fourth quarter and full year 2024, reported on February 11, 2025, showcase a robust operational performance. Key highlights include:
- Crude oil transportation volumes increased by +15%.
- NGL transportation volumes increased by +5%.
- NGL exports increased by over +2%.
- Midstream gathered volumes increased by +2%.
- Interstate natural gas transportation increased by +2%.
- Net income attributable to partners for the quarter reached $1.08 billion.
- Adjusted EBITDA for the quarter totaled $3.88 billion, compared to $3.60 billion for the same period in 2023.
These figures underscore ET’s operational efficiency and its ability to capitalize on increasing demand across various segments. According to Monexa AI, ET has a dividend yield of +6.62%, making it an attractive option for income-focused investors. The company’s strong financial performance and strategic initiatives are reinforcing its position in the midstream energy sector. The company’s CEO, Mr. Marshall S. McCrea III, continues to steer the company towards sustainable growth.
Analyst Sentiment#
As of late February 2025, analyst sentiment towards ET is generally positive, with a consensus rating of