Energy Transfer LP
ET: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $29.00 | Tmhd | Xnfm |
Energy Transfer Earnings: M&A Drives Guidance Increase in Solid Quarter
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Energy Transfer’s first-quarter earnings were generally solid, thanks to healthy volumes and an incremental $250 million marketing contribution from weather-related volatility. Overall EBITDA improved 13% year over year to $3.88 billion. The recent acquisitions of Crestwood and Lotus were the primary contributors. Even excluding their contributions, crude oil volumes were up 14% year over year, which we consider a strong performance. After updating our model, our $21 fair value estimate and no-moat rating remain unchanged.