Energy Transfer, a midstream company, has a diversified fee-based business model and a strong backlog of growth projects, positioning it to continue growing its distribution over the next several years. With its distribution well covered by cash flow and a largely fee-based business model, the company looks poised for growth. Despite trading at a discount to its peers due to past issues, Energy Transfer's improved balance sheet, growth prospects, and distribution restoration should help win back investor trust over time.
Energy Transfer LP (NYSE:ET) reported a Q4 2023 EPS of $0.37, beating expectations of $0.29, and announced a quarterly cash distribution increase of 3.3%. The company generated adjusted EBITDA of $13.7 billion for the full year 2023, up 5% from 2022, and expects 2024 adjusted EBITDA to be between $14.5 billion and $14.8 billion. Energy Transfer also provided updates on various growth projects, including expansions to NGL export capacity, new pipeline acquisitions, and the Lake Charles LNG project, while addressing ongoing legal matters related to pipeline crossings in Louisiana.
Energy Transfer reported its Q4 2023 earnings, revealing a 5% increase in adjusted EBITDA to $13.7 billion for the full year 2023, a partnership record, and $3.6 billion in excess cash flow after distributions. The company also discussed its financial position, including credit rating upgrades and available liquidity, as well as its growth projects and 2024 guidance, expecting adjusted EBITDA between $14.5 billion and $14.8 billion. Additionally, Energy Transfer addressed its capital allocation priorities, emphasizing a disciplined approach to growth projects, distribution growth, and potential unit buybacks.
