Energy Transfer Is Cashing In on a Powerful New Growth Opportunity
Energy Transfer (NYSE: ET) is known for the income it generates for investors. The master limited partnership (MLP) currently pays a 6.7%-yielding cash distribution. However, investors shouldn't discount its growth prospects. It delivered double-digit earnings and cash-flow growth last year, fueled by a combination of acquisitions, organic expansion projects, and strong market conditions. The MLP sees a lot more growth coming down the pipeline, driven partly by an expected surge in power demand over the coming years. It has already started to cash in on this opportunity, which should continue.Co-CEO Tom Long discussed the powerful growth Energy Transfer sees ahead for U.S. electricity demand on the company's fourth-quarter conference call. He noted: "The broader consensus, combined with the number of inbounds we're receiving, suggests that natural gas fuel power demand will increase significantly in the future. We believe the growth needed to accommodate this demand will be significant, and we are in a unique position to capitalize on this opportunity set." Continue reading
Energy Transfer (NYSE: ET) is known for the income it generates for investors. The master limited partnership (MLP) currently pays a 6.7%-yielding cash distribution.
However, investors shouldn't discount its growth prospects. It delivered double-digit earnings and cash-flow growth last year, fueled by a combination of acquisitions, organic expansion projects, and strong market conditions. The MLP sees a lot more growth coming down the pipeline, driven partly by an expected surge in power demand over the coming years. It has already started to cash in on this opportunity, which should continue.
Co-CEO Tom Long discussed the powerful growth Energy Transfer sees ahead for U.S. electricity demand on the company's fourth-quarter conference call. He noted: "The broader consensus, combined with the number of inbounds we're receiving, suggests that natural gas fuel power demand will increase significantly in the future. We believe the growth needed to accommodate this demand will be significant, and we are in a unique position to capitalize on this opportunity set."
