Energy Transfer LP (ET)

Energy Transfer Operating, L.P. owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. Energy Transfer Operating, L.P. also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP , and the general partner interest and 39.7 million common units of USA Compression Partners, LP. Social media mentions are up 71% in the past 24h.

Stockchase Research Editor: Michael O'Reilly We again reiterate ET, an energy services company operating a network of natural gas pipelines and storage facilities in the US, as a TOP PICK. The company plans to spend about $2 billion in organic growth projects, including converting its Lake Charles, LA facility into a LNG export facility. Distributions increased 70% over the year, yet the company still manages a payout ratio under 75% of cash flow. Cash reserves continue to grow, while the company aggressively retires debt and buys back shares. It presently trades at 1.2x book value and at only 10x earnings. Its dividend yield is high, backed by payout ratio under 75% of cash flow. We recommend keeping the trailing stop set at $9.50, looking to achieve $16.00 -- upside potential over 23%. Yield 7.3% (Analysts’ price target is $15.88)

Energy Transfer Operating, L.P. owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. Energy Transfer Operating, L.P. also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and 28.5 million common units of Sunoco LP , and the general partner interest and 39.7 million common units of USA Compression Partners, LP. Social media mentions are up 1500% in the past 24h.

Stockchase Research Editor: Michael O'Reilly We reiterate this energy services company, which operates a network of natural gas pipelines and storage facilities in the US, as a TOP PICK. They will benefit from rising US energy production levels. The company plans to spend about $2 billion on new growth projects this year alone. It presently trades at 1.2x book value and at only 10x earnings - compared to peers at 35x. Its dividend yield is high, backed by payout ratio of 55% of cash flow. Cash reserves are growing and the company is aggressively retiring debt. We recommend trailing up the stop loss (from $7.50) to $9.50, looking to achieve $16.00 -- upside potential over 30%. Yield 7.7% (Analysts’ price target is $15.73)

Stockchase Research Editor: Michael O'Reilly This energy services company operates a network of natural gas pipelines and storage facilities in the US. They are less impacted by downward moves in energy prices and benefit from rising production levels. It presently trades at book value and at only 10x earnings. Its dividend yield is high, backed by payout ratio under 80% of cash flow. Cash reserves are growing and the company continues to buy back shares. We recommend setting a stop loss at $7.50, looking to achieve $15.50 -- upside potential over 45%. Yield 7.67% (Analysts’ price target is $15.47)

(A Top Pick Aug 17/21, Down 14.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ET has triggered its stop at $8.00. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.

Stockchase Research Editor: Michael O'Reilly ET is an operator of over 20,000 miles of natural gas pipelines in the US and is also involved in the processing and storage of natural gas. As such, it is less exposed to the volatility of underlying natural gas prices as it derives its value from the margin it collects from customers. It trades at 7x earnings compared to peers at 21x and is trading right near book value -- good value here. It pays a great dividend, backed by a payout ratio near 50% of cash flow. We would buy this with a stop loss at $8.00, looking to achieve $13.00 -- upside potential over 36%. Yield 6.41% (Analysts’ price target is $13.06)