Jim Cramer on Energy Transfer: "I Think It's a Pretty Well-Run Company"

Energy Transfer LP (NYSE:ET) is one of the 21 stocks on Jim Cramer’s radar. A caller asked for Cramer’s take on the company and his outlook on natural gas. Here’s what he had to say in response:

“Natural gas is very hard to tell. I think that 3 to 4 is probably where it belongs. ET had a problem. They’ve got some ethane issues. The government’s holding up the ethane from China because we’re trying to say, listen, you won’t give us rare earth materials, we won’t give you ethane.

Now I think that’s a little misjudgment on… [the] part of our government because ethane is actually kind of a broad commodity that anybody can get anywhere. That has hurt ET. It will make it so the numbers may not be as good, but the fact is, it’s got a great yield, and I think it’s a pretty well-run company. I like Enterprise Products Partners, too, but they, too, have the same ethanol problem.”

Energy Transfer LP (NYSE:ET) provides energy services, including transportation, storage, processing, and marketing of natural gas, crude oil, and natural gas liquids. Moreover, the company engages in fuel distribution, power trading, and resource management.

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Disclosure: None.