7 Cheap Energy Stocks To Buy Under $20

03. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 32

Forward P/E Ratio as of September 29: 13.60

Energy Transfer LP (NYSE:ET) is a prominent energy company involved in the transportation, storage, and sale of natural gas, crude oil, and related products across the United States. With a robust infrastructure, including 20,090 miles of interstate natural gas pipelines, and operations in key energy-producing states such as Texas and Oklahoma, Energy Transfer LP (NYSE:ET) is well-positioned in the industry. The stock is a compelling addition to the list of cheap energy stocks, as it trades at a forward P/E Ratio of 13.60, making it attractively valued compared to peers. As of Q2 2024, the company had 32 hedge fund holders, consistent with the previous quarter, reflecting steady institutional interest.

In the second quarter of 2024, Energy Transfer LP (NYSE:ET) outperformed earnings expectations, reporting an EPS of $0.35 against the consensus estimate of $0.3481. This solid financial performance is underpinned by record volumes in its crude oil and natural gas liquids (NGL) pipelines and exports. The company posted an adjusted EBITDA of $3.76 billion for the quarter, a notable increase from $3.1 billion in Q2 2023. The growth was primarily driven by strong performance in the NGL and refined products segments, which generated an adjusted EBITDA of $1.07 billion, compared to $837 million in the previous year.

The midstream segment also saw growth, with an adjusted EBITDA of $693 million, up from $579 million in Q2 2023, supported by higher volumes in the Permian Basin and the addition of Crestwood assets. Energy Transfer LP (NYSE:ET) acquisition strategy continues to enhance its financial performance and asset base. The company completed the acquisition of WTG in July 2024, which significantly strengthens its natural gas and NGL operations in the Permian Basin.

Moreover, Energy Transfer LP (NYSE:ET) commitment to expanding its infrastructure is evident in its ongoing projects, such as the $1 billion spent on organic growth capital in 2024. With its comprehensive pipeline network, strong cash flow generation, and strategic growth initiatives, Energy Transfer LP (NYSE:ET) remains an attractive option for investors seeking exposure to the energy sector under $20 per share.