$ET - Energy Transfer: Flowing Toward Profit or a Pipeline to Nowhere?

This trade has been hitting my scanner the past week and after looking into it, I think this is the next natural gas play to take off.

Overview of Energy Transfer LP ($ET)

Company Background: Energy Transfer LP is a leading midstream energy company operating one of the largest and most diversified portfolios of energy assets in the United States, focusing on the transportation, storage, and processing of natural gas, crude oil, refined products, and natural gas liquids (NGLs). Its network of pipelines and facilities spans 41 states, making it a critical player in the U.S. energy infrastructure.

Key Points

Natural Gas Pipelines: Energy Transfer owns and operates an extensive natural gas pipeline network, connecting producers in key basins (like the Permian and Marcellus) to markets and export terminals.

Diversified Product Infrastructure: The company also has a robust presence in NGL and crude oil transportation and storage, providing essential links between production sites and end markets.

Export Terminals: Energy Transfer operates facilities like the LNG export terminal at Lake Charles; Allowing them to supply LNG to international clients.

Consistent Cash Flow Generation: They earn money by transporting a commodity. If people are going to want more natural gas, then ET earnings more money transporting the increased NG flows.

Strong Distribution Payouts: Solid Dividend Yield

Chart

On the monthly timeframe, ET 0.00%↑ is breaking out of this pesky 4.5 year channel

Options Flows

There is substantial OI across dated calls from 18-22 with near constant adds the past week.

If you’re playing options, time is your friend and I would target End of year 2025.