1. Energy Transfer LP (NYSE:ET)
Upside Potential According to Analysts: 23.73%
Energy Transfer LP (NYSE:ET) is a comprehensive energy infrastructure provider across the US. The company operates across three diverse segments, including gas and oil transportation, storage, and processing. It owns extensive natural gas pipelines, both intrastate and interstate, and provides gas sales to various customers. The company also operates a vast NGL pipeline network, fractionation, and storage facilities. They offer crude oil transportation, terminalling, and marketing, owning thousands of miles of crude oil pipelines.
Furthermore, they distribute motor fuels under the Sunoco and EcoMaxx brands, provide natural gas compression, and engage in wholesale power trading. Their diverse operations include carbon dioxide and hydrogen sulfide removal, coal and natural resource management, timber sales, and royalty collection. It is worth noting that the company’s extensive infrastructure and services span the entire energy value chain.
Energy Transfer LP (NYSE:ET) stated a top line of $19.54 billion during the Q4 Earnings call report. EBITDA was $3.9 billion, while the cumulative EBITDA for the year of 2024 was $15.5 billion, and an EPS of $0.29.
Energy Transfer LP (NYSE:ET) has pursued a strategy of substantial capital expenditure, as shown by the $4 billion invested in growth and maintenance capex for FY2024, a 69.4% YoY increase, and the projected $5 billion for FY2025. This aggressive investment has enabled the company to significantly expand its operational capacity across its pipeline networks, processing facilities, export capabilities, and gas-fired electric generation plants. Simultaneously, management solidified its initial data center agreement with Cloudburst Data Centres by February 2025.
Co-CEO Mackie McCrea spoke on the company’s capex investments during the Q4 earnings call, stating:
“You know the $5 billion, those were projects we’ve sanctioned, they’re moving forward, great rate of returns. We’re very, very, very excited about that. And when you look at what’s driving a lot of that is midstream. I mean midstream is kind of the, call it the heart. It’s what starts everything. It’s where we gather and process and treat, compress and then put it into our system.”
Energy Transfer LP (NYSE:ET) has a market capitalization of $63.13 billion, with an average twelve month trading price of $22.73, an upside of 23.73%.
Overall, Energy Transfer LP (NYSE:ET) ranks first on our list of the best pipeline and MLP stocks. While we acknowledge the potential for ET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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