10 Best LNG and LNG Shipping Stocks to Buy According to Analysts

4. Energy Transfer LP (NYSE:ET)

Average Upside Potential: 16.93%

Number of Hedge Fund Holders: 37

Energy Transfer LP (NYSE:ET) is one of the top energy infrastructure players in the U.S. The company operates and owns an extensive network of assets including natural gas, natural gas liquid (NGL), crude oil and refined products. Energy Transfer operates over 32,000 miles of natural gas pipelines across intrastate and interstate networks, supplemented by storage facilities and export terminals.

For the year 2024, Energy Transfer LP (NYSE:ET) reported an adjusted EBITDA of $15.5 billion, which is a jump of 13% from 2023. The company’s distributable cash flow (DCF) was up by 10%, standing at $8.4 billion. This growth was supplemented by NGL exports, stable processing margins and higher transported volumes.

The company, in an effort to expand its LNG footprint, secured a 20-year LNG sale and purchase agreement from Chevron for its Charles LNG project. It is in the process of constructing its Hugh Brinson 400-mile-long pipeline, which would increase connectivity between the market and the Permian and move its CloudBurst project forward. This project targets the demand of natural gas from data centers.

However, Energy Transfer LP (NYSE:ET) does face challenges from the anticipated compression in the Waha basis spread. This points to the difference in natural gas prices at the Waha hub in West Texas when compared to other markets. While the margins can be affected by a narrower spread, the company’s extensive pipeline network and export capabilities add to its strong buffer capacity.

Moreover, the company is focused on LNG and midstream infrastructure with $5 billion planned CapEx in 2025. Thus, Energy Transfer LP (NYSE:ET) has a strong position in the global LNG market, which puts it among the Best LNG and LNG Shipping Stocks to Buy.