ET, $17.69, +0.05 (+0.28%), as of Jun-24-2025 4:10:00 PM ET 🔥

Part of our series: "Gold, Bitcoin, Commodities, MLPs, Agriculture, Real Estate: Diversification Is Key... But How Much and Where?"

Welcome to the commodity carnival: gold, bitcoin, farmland, real estate, MLPs, and now... pipes. In our eternal quest for diversification, today’s spotlight lands on a slow but steady performer—Energy Transfer LP (ET). And insiders? They’re buying like someone told them oil runs out tomorrow.

🌐 Setting the Scene: Dallas, Pipes, and Big Moves

Energy Transfer, based in Dallas, Texas, owns and operates one of the most expansive portfolios of energy infrastructure assets in the U.S. We’re talking:

• 12,200 miles of intrastate natural gas pipelines

• 20,090 miles of interstate pipelines

• 17,950 miles of crude oil lines

• 5,700 miles of NGL lines

• Processing plants, fractionation facilities, fuel terminals, and much more

They even collect royalties on standing timber. What don’t they do?

They don’t sell candy.

🕵️ Trigger Watch: Insiders Are on a Buying Spree

Recent insider purchases suggest someone at ET really, really believes in the business. Highlights:

• Kelcy Warren (Executive COB) bought a staggering 3 million shares at $15.68 in August 2024

• Thomas Long (Co-CEO) and Gregory McIlwain (EVP Ops) bought 20,000 shares each in the same week

• Bradford Whitehurst, Marshall McCrea, Thomas Mason, and others have been consistently purchasing shares over the last year

• Most recently, James Richard Perry (Dir) added 25,892 shares on June 17, 2025 at $13.52

These aren’t token gestures. Many of these are multi-million-dollar buys.

Yet, institutional ownership sits at just 36.13% of float. If funds wake up and rerate ET, we could see a pipeline-fueled rally.

🔍 For full Institutional Ownership breakdown, see here. 

📈 Financial Pulse: Steady Flow, Few Surprises

Q1 2025 Numbers:

• Net Income: $1.32B, up from $1.24B YoY

• Adjusted EBITDA: $4.10B vs. $3.88B YoY

• Distributable Cash Flow: $2.31B, slightly down from $2.36B

Operational Wins:

• Record-setting natural gas transport volumes (+3%)

• Crude oil transport volumes up 10%

• NGL exports up 5%

• Commenced Hugh Brinson Pipeline Phase I

• Commissioned first of eight 10MW natural gas-fired plants 

👉 Want the full picture? Dive into Energy Transfer’s financials here.

Dividend Update:

• Declared quarterly dividend of $0.3275,

• That’s $1.31 annualized — a 7.4% yield at current prices. 

👉 Want even more data & statistics on ET? Consult here.

🏋️ Valuation Check: Is It Cheap or Just Reasonably Priced?

• P/E: 13.76

• Forward P/E: 11.20

• Price/Sales: 0.74

• Price/Book: 1.72

Bottom line? This isn’t a distressed bargain. But it’s also not a bloated tech darling flying on vibes and valuation delusion. It’s fair value with a hefty dividend cherry.

⚡ The 2025 Outlook: Solid but Not Spectacular

• Adjusted EBITDA forecast: $16.1B – $16.5B

• Growth Capex: ~$5.0B

• Maintenance Capex: ~$1.1B

Don’t expect parabolic growth. Energy Transfer is in the business of predictable returns and sturdy pipes. If your dream stock is a rollercoaster, this one’s more of a highway rest stop.

⚠ Risks Worth Noting

• Economic slowdowns could crimp volume growth

• Export restrictions or tariffs could shake things up

• Low institutional ownership means volatility from retail-driven narratives

However, 90% of ET’s contracts are long-term and fee-based, shielding it from wild commodity swings. No single business segment contributes more than a third to EBITDA. That’s a bit of a moat.

💡 Curious about a possible value play?
Check our takes on UnitedHealth Group or Oscar Health.

🔋 Should You Plug In?

If you're chasing fast money, ET is not your flame. But if you like solid cash flows, high dividend yield, insider conviction, and a business that could benefit from rising global energy demand (AI server farms don’t power themselves!), then...

Yes, plug in.

📅 Final Thought:

Energy Transfer isn’t sexy. But it might be serious. And in a world of meme stocks and speculative bubbles, serious is the new sexy. 

🚨 Disclaimer:

Please transfer energy elsewhere if you think we can commit more than jokes to our Energy Transfer stock investment analysis.

🧭 Want More Like This?

👉 Browse our Insider Purchases Center
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