Energy Transfer: stable growth, high dividends and long-term potential

Energy Transfer $ET is one of the largest U.S. energy infrastructure operators with a market capitalization of $64 billion. ET stock is up 22.5% over the past year, and when you add in a dividend yield of over 6.8%, the total return to investors is over 30%.

Energy Transfer's key growth drivers:

Strong position in the Permian Basin

Strategic acquisitions (Lotus Midstream, WTG Midstream, Crestwood Equity Partners)

Expansion of processing capacity (Arrowhead II, III, Mustang Draw, Red Lake III, IV)

New Hugh Brinson Pipeline to increase transportation capacity

Reason for significance: The Permian Basin is the largest producing region in the U.S. and Energy Transfer is strengthening its position as a key player in natural gas gathering, transportation and processing here.

Growing demand for natural gas:

105,000 miles of pipeline and 236 billion cubic feet of storage capacity

Gas supplies for 185 power plants in the U.S.

New projects: 60 power plants in 13 states, 70 data centers in 12 states

Reason for significance: the rise of data centers (AI, cloud computing), onshoring of generation, and electric mobility is increasing demand for natural gas - Energy Transfer is well positioned for this.

Expansion into natural gas liquids (NGL) exports:

Investment in export infrastructure (Mont Belvieu Frac IX, Sabina 2, Gateway NGL)

Modernisation of the Nederland Flexport and Marcus Hook export terminals

Exploiting global demand for US NGLs (ethane, propane, butane)

Reason for significance: With the growing global interest in US energy products, Energy Transfer is diversifying its revenues and reducing its dependence on the domestic market.

Risks of investing in Energy Transfer:

Oil and gas cyclicality - although $ET benefits from demand growth, commodity price volatility can affect its margins.

Regulatory risk - new regulations restricting fossil fuels may slow the company's expansion.

Debt burden - expansion is financed by debt, which can be risky if interest rates rise.

Investment perspective: Why Energy Transfer makes sense for long-term investors

Attractive dividend yield (6.8%) - stable passive income for investors.

Strong infrastructure and growth strategy - focused on the Permian Basin, growing domestic demand and export markets.

Income diversification - combination of domestic and international opportunities.

Energy sector support - natural gas plays a key role in the transition to cleaner energy.

Energy Transfer $ET Offers an excellent mix of stable dividend yield and growth potential. With strong infrastructure, growing exports, and increasing demand for natural gas, it could be a great long-term portfolio fit through 2030 and beyond.