Energy Transfer Stock: Buy, Sell, or Hold?
Energy Transfer's (NYSE: ET) stock has been on a solid run the past year, with its stock price up about 30% as of this writing. Meanwhile, the midstream energy company is set to ramp up its growth spending this year.Let's look at the buy and sell cases for the stock to see if it is still worth buying after a solid run.Energy Transfer has arguably one of the best integrated midstream systems in North America, where it transports, stores, and upgrades various hydrocarbons. The company's large integrated system and strong presence in the Permian Basin give it a lot of arbitrage opportunities. This can be done through transporting natural gas away from a low-cost region, such as the Waha hub in Western Texas, to an area with more favorable pricing, or storing natural gas to realize better seasonal pricing in the winter. The company is also able to upgrade various natural gas liquids (NGLs) to higher-value products when the margins are favorable.Continue reading
Energy Transfer's (NYSE: ET) stock has been on a solid run the past year, with its stock price up about 30% as of this writing. Meanwhile, the midstream energy company is set to ramp up its growth spending this year.
Let's look at the buy and sell cases for the stock to see if it is still worth buying after a solid run.
Energy Transfer has arguably one of the best integrated midstream systems in North America, where it transports, stores, and upgrades various hydrocarbons. The company's large integrated system and strong presence in the Permian Basin give it a lot of arbitrage opportunities. This can be done through transporting natural gas away from a low-cost region, such as the Waha hub in Western Texas, to an area with more favorable pricing, or storing natural gas to realize better seasonal pricing in the winter. The company is also able to upgrade various natural gas liquids (NGLs) to higher-value products when the margins are favorable.
