Energy Transfer (ET) enters multiple agreements through affiliates

What happened: Energy Transfer (ET) has seen a series of bullish developments, starting with Matador Resources announcing multiple agreements with ET affiliates on June 4, including a new gas supply agreement. On June 19, ET expanded its Nederland NGL Export Terminal, increasing ethane and LPG export capacity. ET reported a 78.4% increase in revenue and a significant rise in profits for Q2. The company plans to spend $5.5-$5.9 billion on growth capex this year, having raised distributions for 18 consecutive quarters.

Market impact: These developments have positively impacted ET's stock, with analysts labeling it one of the best energy dividend stocks, value stocks, and low volatility stocks to buy. The agreements with Matador Resources and the Nederland NGL Export Terminal expansion have improved ET's pricing netbacks and increased its export capacity, driving growth and profitability. ET's stable business model and attractive forward yield have also drawn investor attention.

What to watch next: Investors should monitor ET's Q3 earnings, expected in late October, to gauge the sustainability of its growth and profitability. Additionally, the completion of the Nederland NGL Export Terminal expansion in late 2023 will be a key catalyst, as it will further boost ET's export capacity and cash flows. Lastly, any updates on ET's growth capex spending and its impact on distributions will be crucial for investors.