Energy Transfer LP (ET) Positioned for LNG Export Growth Despite Short-Term NGL Headwinds, RBC Capital Maintains Outperform

Energy Transfer LP (NYSE:ET) ranks among the best stocks under $25 to buy now. On December 15, RBC Capital reaffirmed coverage of Energy Transfer LP (NYSE:ET) with an Outperform rating and a $22 price target. The firm adjusted its model in response to the company’s recent earnings reports, the completion of SUN’s acquisition of Parkland, and USAC’s planned acquisition of J-W Power.

The company’s adjusted EBITDA reached $3.84 billion, compared to $3.96 billion in the previous year. Distributable cash flow was also recorded at $1.90 billion, a decrease from $1.99 billion the same period a year earlier. Energy Transfer LP (NYSE:ET) stated that the decreases were due to a number of one-time events, including an additional $43 million to settle a prior tax obligation.

RBC Capital feels that Energy Transfer LP (NYSE:ET) is well-positioned to benefit from rising natural gas demand, notably from data centers and LNG exports. However, the firm anticipates certain short-term headwinds in Energy Transfer’s NGL operations as key NGL pipeline contracts expire and must be renewed, possibly on additional conditions.

Energy Transfer LP (NYSE:ET) is a leading U.S. midstream energy company headquartered in Dallas, Texas. It operates over 140,000 miles of pipelines across 44 states, transporting and storing natural gas, crude oil, and natural gas liquids (NGLs).

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Disclosure: None. This article is originally published at Insider Monkey.