Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

6. Energy Transfer L.P. (NYSE:ET)

Number of Hedge Fund Investors: 32

Jim Cramer said he is now a buyer of Energy Transfer L.P. (NYSE:ET), despite historically not liking the company’s balance sheet. He acknowledged that Energy Transfer L.P. (NYSE:ET) is performing well, and its past financial issues are no longer a concern for him. Cramer emphasized that Energy Transfer L.P. (NYSE:ET)’s current performance outweighs previous reservations he had about it.

“I am a buyer of Energy Transfer L.P. (NYSE:ET)! I can’t believe I’m saying that because historically, I haven’t cared for their balance sheet. But it doesn’t matter—it’s doing really well.”

Energy Transfer L.P. (NYSE:ET) is a strong investment option due to its strong financial performance, strategic growth efforts, and attractive dividend yield. In Q2 2024, Energy Transfer L.P. (NYSE:ET) reported adjusted EBITDA of $3.76 billion, up from $3.1 billion a year ago, thanks to record volumes in crude oil, NGL pipelines, and exports. This growth highlights Energy Transfer L.P. (NYSE:ET)’s expanding scale and effectiveness in its operations.

Recent acquisitions, like WTG and Crestwood, have bolstered its presence in key regions such as the Permian Basin, enhancing its midstream operations and setting the stage for continued growth. These new assets have already increased volumes, and future projects like the Red Lake 3 processing plant are expected to boost performance even further. Additionally, Energy Transfer L.P. (NYSE:ET) offers a dividend yield of over 9%, making it very appealing to income-focused investors.

Energy Transfer L.P. (NYSE:ET)’s investments in both organic growth and strategic acquisitions position it well to meet rising energy infrastructure demands. With strong financials, a solid asset base, and favorable shareholder policies, Energy Transfer L.P. (NYSE:ET) is a compelling long-term investment in the energy sector.