(Bloomberg) -- Blackstone Group disclosed a 6.9% stake in Energy Transfer LP that would make it the second-biggest holder in the pipeline giant after billionaire founder and Chief Executive Officer Kelcy Warren.The New York-based investment firm said the interest includes units owned by Harvest Fund Advisors, which it bought in 2017. Harvest owned 4% of Energy Transfer’s unit as of the end of last year. Blackstone reported the stake in a regulatory filing after the market closed Wednesday, sending Energy Transfer units up as much as 9.7%.The disclosure comes just two weeks after the firm closed on its takeout of Tallgrass Energy, another pipeline operator.Warren has built Energy Transfer into one of the biggest pipeline operators in the U.S., taking on politically contentious projects that its rivals have steered clear of, while also showing an appetite for deals.Even before the pandemic-fueled collapse in oil prices, Energy Transfer units had lagged those of its pipeline peers. That led some analysts at the end of last year to speculate whether Warren would ever take the company private. The Dallas-based company’s stock is down 46% in the last year as of Wednesday’s close.Blackstone earlier this month closed on a tumultuous deal to take Tallgrass private, ending a year-long saga that started when the private equity behemoth bought a controlling stake in the company in March 2019. The firm has invested in one of Energy’s Transfer’s projects before, buying a 32% stake in the Rover natural gas pipeline for about $1.6 billion in 2017.Unlike most of its peers, Energy Transfer has stuck to the master limited partnership structure, once considered a tax-advantaged way to hold pipelines that has struggled to attract investors since a series of policy changes in 2018. The limited partner -- Energy Transfer LP -- is publicly traded, while the general partner is closely held, with Warren controlling a majority stake.“Sometimes you need to be defensive,” Warren said at an industry conference in early February. “To run an MLP correctly, you must have a mix of M&A and organic growth.”Warren’s also hinted that the company could be changing its structure. Enterprise Products Partners LP, Energy Transfer’s main competitor, said Wednesday that its own shift from the MLP model may be put on the backburner while it deals with an historic plunge in oil prices.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

ET earnings call for the period ending March 31, 2020.

Let's see if Energy Transfer LP (ET) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.

Energy Transfer (ET) misses first-quarter earnings and revenue estimates, and lowers its 2020 capital expenditure guidance, taking into account the economic crisis caused by COVID-19 impacts.

Units of Energy Transfer (NYSE: ET) have cratered roughly 35% this year. One of the things he noted was that Energy Transfer generated $1.42 billion of cash during the quarter. As a result, he pointed out that the "coverage ratio for the quarter was 1.72 times, which resulted in excess cash flow after distributions of $594 million."

The herd trade has seized oil as hedge funds pile into the market to try and gain from its upside momentum, even without a fresh driver for prices. A day after rallying 5% on positive crude stockpiles data that was offset by a surprise rise in gasoline inventories, U.S. crude’s West Texas Intermediate benchmark was up again, this time without a new catalyst. Brent, the London-traded global benchmark for oil, rose 16 cents, or 0.5%, at $35.91.

Energy Transfer LP (ET) closed the most recent trading day at $8.22, moving +1.61% from the previous trading session.

Contribution from organic projects and benefits from the SemGroup Corporation acquisition are likely to reflect on Energy Transfer's (ET) first-quarter results.

Baupost leader’s new buys include FAANG stocks Facebook and Google Continue reading...

In the latest trading session, Energy Transfer LP (ET) closed at $7.23, marking a +0.49% move from the previous day.

Guru releases 1st-quarter portfolio Continue reading...

Energy Transfer LP (NYSE:ET) ("ET" or the "Partnership") today reported financial results for the quarter ended March 31, 2020.

(Bloomberg) -- Some drillers in the biggest North American oil field are reopening wells shut in response to the pandemic-driven price collapse, according to pipeline giant Energy Transfer LP.In the Permian Basin’s Midland region, about 8% of oil volumes that feed Energy Transfer’s pipe network had been shut at the start of the month, Mackie McCrea, the company’s chief commercial officer, said during a conference call on Monday.“As of today, we’ve seen about 25% of that turned back on,” McCrea said.The reopening of wells shut in recent weeks may undermine U.S. President Donald Trump’s pledge to assist a coalition of OPEC and allied oil producers like Russia in taming a global gut. Trump, for his part, indicated U.S. output could be trimmed by 2 million barrels a day, albeit by market attrition rather than government-imposed quotas.Benchmark U.S. oil futures have more than doubled in the past two weeks after dipping into negative territory on April 20 for the first time in history. The price was above $25 a barrel on Tuesday and rising toward the $30 range that some drillers have said they need to revive idle wells.McCrea didn’t say how many barrels of Permian production has been restored. His comments came as drillers including Continental Resources Inc. and Callon Petroleum Co. announced additional oil curtailments. American drillers have disclosed plans to halt more than 600,000 barrels of daily output through the end of next month, Rystad Energy said last week.But Energy Transfer said the industry probably has made it through the worst of the price crash triggered by Covid-19 lockdowns that zapped demand. “We see that things have bottomed out in our opinion and that things are improving,” McCrea said.Oil producers have generally been vague about when they’ll ramp output back up, though some have hinted that oil prices in the high-$20s or low-$30s could be sufficient. While several drillers have said they’ve “voluntarily” curtailed production, others have had their hand forced by rapidly filling storage capacity.Energy Transfer has already said it’s seeking to free up space on a couple of its Texas pipelines so it can offer more storage space. And on Monday, the company said it had reserved about 6.2 million barrels of crude storage capacity in the U.S. government’s Strategic Petroleum Reserve.(Updates with recent surge in oil prices in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

While the company expects this trend to continue over the coming quarters, causing it to reduce its full-year guidance, it still plans to maintain its high-yielding distribution. Overall, Energy Transfer's earnings slipped by about 4% during the first quarter, while its cash flow fell by a low double-digit rate.

Few things have been more miserable than being long crude oil in 2020 (though being long midstream energy companies isn't too far behind). Consider the case of Energy Transfer (NYSE:ET) stock, my pick in InvestorPlace's Best Stocks for 2020 contest.Source: Shutterstock Between coronavirus market volatility and the plunge in energy prices, Energy Transfer got its head bashed in. At its lows, it was down 76% from its 52-week highs. The shares have nearly doubled off those crisis lows but remain nearly 40% below early March prices.And the shares weren't exactly expensive going into the crisis. I recommended Energy Transfer back in December because the shares looked ridiculously cheap even then … before the energy industry blew up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Click to EnlargeLet's give Energy Transfer a closer look.The stock market as a whole isn't particularly cheap right now. We entered the coronavirus crisis with stock valuations at nosebleed levels, and major market averages never quite reached the valuation lows you'd expect to see at a bottom. But there are bargains out there, and Energy Transfer looks like one of them. Relative Low Exposure to Crude OilIt's understandable why investors are mostly choosing to steer clear of the energy sector. The coronavirus crisis and related lockdowns obviously make things infinitely worse, but the industry was in structural oversupply even before the crisis hit. * 9 Quirky Stocks to Buy for the 'New Normal' Though interestingly, Energy Transfer's share price has been trending higher throughout April and was essentially unaffected by the negative-crude-price fiasco.Most of this is due to Energy Transfer's relatively low exposure to crude oil prices. Only about 5% to 7% of EBITDA is tied to commodity prices, with 85% to 90% fee based. (The remaining 5% to 7% is tied to various spread margins.)Furthermore, Energy Transfer is actively looking to profit from the crude glut by effectively transforming some of its pipelines into crude storage facilities. According to Bloomberg, ET has identified two pipelines it can use to store about 2 million barrels of oil.Energy Transfer does have counterparty risk, of course. The fee agreements are only as good as the balance sheets of the companies obliged to pay them. But it's worth noting that 81% of its counterparties are rated as investment grade and only 12% are rated below BB.There is a very real risk of some of ET stock's fee arrangements being renegotiated in bankruptcy court. But even that would seem manageable given the relatively low exposure to high-risk counterparties. Energy Transfer Is Dirt CheapEnergy Transfer's distribution yield (the equivalent of a dividend yield for an MLP) recently hit all-time highs over 25%. Even after the recent run-up in the stock price, the shares recently yielded more than 14%.Yield isn't the best measure of a stock's valuation because distributions have a way of getting cut when times get tough. Though it's worth mentioning that Energy Transfer recently reaffirmed its distribution and that is distribution coverage ratio was a healthy 1.96x as of year end.Let's forget about the yield for a minute and look deeper. Traditional metrics like the price/earnings ratio tend not to work particularly well for MLPs, as high non-cash expenses tend to distort earnings. But we can use alternative metrics, such as enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA).By this metric, Energy Transfer has never been cheaper. The company is trading at a EV/EBITDA ratio of 6.7, less than half the valuation seen for most of 2018.Cheap stocks can always get cheaper, of course. But there could be some catalysts later this year that will finally shake Energy Transfer out of its funk. Conversion to C-Corp in the Works?No one likes MLPs. The structure is confusing and cumbersome, they issue K1 forms that make taxes a beatdown, and limited partners generally don't have the the same rights as proper corporate shareholders. Many institutional investors are forbidden from investing in them. And the only reason a lot of investors were willing to put up with all of this was the favorable taxation. Limited partnerships avoided corporate taxation, but even this is less favorable now that corporate taxes have been slashed from 35% to 21%.All of this partly explains why true MLPs like Energy Transfer have performed worse than substantially similar C-corp pipeline operators like Kinder Morgan (NYSE:KMI).Well, there may be changes afoot. During the February 19 investor call, Chairman Kelcy Warren said that the company would be offering a "C-corp alternative" later this year.We'll see. Warren has teased us with this possibility before, and we're still waiting on it. But should it happen, it should mean a nice pop to the share price. As a point of reference, Kinder Morgan trades at a EV/EBITDA ratio of 10.7, while Energy Transfer's stands at 6.7.In the meantime, Energy Transfer offers a yield of nearly 20% that seems safe for the time being. Even if the price continues to lag for a while, the yield alone would make the shares wildly attractive.Charles Lewis Sizemore, CFA is the principal of Sizemore Capital, an investment advisory firm based in Dallas, Texas. As of this writing he was long ET and KMI. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Amidst the Crude Oil Rout, Energy Transfer Is a Buy appeared first on InvestorPlace.

Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended March 31, 2020.

Energy Transfer LP (ET) has reported weaker-than-expected results for the first quarter, with Q1 GAAP EPS of -$0.32 missing Street expectations by $0.66. Meanwhile revenue of $11.63B (-11.4% year-over-year) fell short by $2.77B.ET reported an earnings net loss for the three months ended March 31, 2020 of $855 million. This included non-cash goodwill impairments of $1.3 billion as a result of decreases in commodity prices and market demand.Based on the outlook for the current market, ET is now reducing its 2020 growth capital outlook by at least $400 million, to $3.6 billion, with another $300 million to $400 million of capital under evaluation for potential further reductions during the year.In the first quarter, ET spent approximately $1 billion on growth capital projects. And for the full year, ET expects that approximately 70% of the growth capital will be spent on projects that are already 60% or more complete and will be in-service in 2020 or early 2021.Looking ahead, ET lowered its 2020 EBITDA guidance to $10.6-10.8BN, which is relatively in line with consensus (would have been higher excluding the inventory revaluation). ET also believes volumes may now have bottomed and noted that in its Midstream segment in the Midland Basin producers have turned back on 25% of volumes that they shut in at the beginning of May.Reiterating her buy rating on Energy Transfer, RBC Capital’s Elvira Scotto commented: “ET still expects to turn free cash flow positive in 2021 (after growth capex and distributions), as it expects growth capex of less than $2BN.”She has an $11 price target on the stock (43% upside potential) and notes that while M&A is part of its strategy, the company has stated that any acquisition it undertakes must be de-leveraging.“We expect ET units to perform in line with the AMZ tomorrow on the guidance and given ET’s underperformance the past week (ET down 5% vs. AMZ down 2%)” says Scotto.Overall, the stock shows a cautiously optimistic Moderate Buy consensus from the Street. After losing 40% year-to-date, the average analyst price target indicates 54% upside potential from current levels. (See ET stock analysis on TipRanks).Related News: Tesla: Moving Fremont a Risky Move, Says Analyst Microsoft to Splash $1.5 Billion on Italy’s Cloud Business Transformation Barrick Gold (GOLD) Stock Is a Winner, But How Much Higher Can It Go? More recent articles from Smarter Analyst: * Zoom Suspends Free China Service As Trade Tensions Intensify * Unclear If President Trump Will Wear Mask At Ford’s Repurposed Factory Tour * Facebook Rolls Out Online Shopping Platform For Businesses * Microsoft Buys Softomotive To Boost Its Robotic Automation Offerings

Despite two of the three cutting their payouts, investors still jumped back in to the oil and gas sector.

WTI crude falls more than 20% Continue reading...

The coronavirus epidemic, and the economic and society lockdowns put in place to combat it, have body-slammed the financial world; the S&P 500 is still down 13% even after a 5 week rally, while oil prices are stuck in a doldrums, with Brent trading at just $30 and WTI at $25. Corporate earnings season has been grim, and some 120 S&P companies have rescinded their 2020 guidance while others have canceled dividend payments or stock buybacks.So, investors are confused; they aren’t seeing the usual signals that indicate what the market may do, and opinions are deeply divided on whether we’ll see a true rally or a long-term bear cycle. Writing from Wells Fargo, head of equity strategy Chris Harvey has come down on the bearish side, but with a caveat. “A near-term equity market pullback should not be unexpected – but we believe selloffs will be much shallower than those in the recent past,” he says, and goes on to add, “There still is substantial uncertainty, and the path forward is not set in stone. Market participants are deciphering shades of gray and for now we are accepting of data that is merely less bad.”Looking at possible ways forward, Harvey expects that the ‘shallower’ selloff will find support from dividend stocks. He’s predicting that the equity market’s current upward trend has pushed the dividend future contract up towards $50. He does not expect dividend stocks to falter in CY20; they are the logical defensive move for investors seeking to remain in the market while protecting their income stream.Harvey’s colleagues at Well Fargo are extrapolating from his general stance, and applying it to individual stocks. In a series of reports, the firm’s stock analysts outlined some low-cost, high-return dividend stocks that investors need to consider – and also one that may be too risky to try. We’ve pulled the details from the TipRanks database, so let’s find out what makes these stock moves so compelling.Energy Transfer LP (ET)We’ll start in the energy sector, where strong dividends are common. The collapse of oil prices – America’s WTI benchmark dipped into negative territory for the first time ever on April 20 – hurt the industry, but there is still some resilience there. Energy is a non-negotiable requirement in modern society, and there is always current demand for hydrocarbon products. Energy Transfer, a midstream company, is well positioned to take advantage of hydrocarbon demand; it controls pipelines, terminals, and storage tanks for both crude oil and natural gas in 38 states. The company operates mainly in the Texas-Oklahoma-Louisiana and Midwest-Appalachian regions.ET finished 2019 with a solid earnings report, beating both the EPS and revenue expectations while growing both metric year-over-year. Heading into Q1, the company had also increased its distributable cash flow by 2%, to $1.55 billion, an excellent signal for dividend investors. The company will report Q1 this evening, and the outlook is for 32 cents EPS, down 15.7% sequentially. At the same time, the revenue forecast is looking at a 6.8% yoy increase to $14.02 billion.The cash flow is likely to be the more important figure, as far as investors are concerned. ET has been keeping up reliable payments for the last eleven years, and the current quarterly dividend, of 30.5 cents, is set for payment on May 19. The current payout ratio is high but still affordable – and even if earnings drop to the expected 32 cents, the company will still be able to cover the dividend payment. And at 16%, the dividend yield is simply stellar – far higher than the 2% average among S&P listed companies.Analyst Michael Blum reviewed this stock for Wells Fargo, and took a clearly bullish position. Blum rates ET shares a Buy, with a $12 price target that suggests an impressive 59% upside potential for the coming year. (To watch Blum’s track record, click here)Supporting his stance on ET, Blum looks to the long-term and writes, “[H]ydrocarbon use will [not] dramatically decrease within the next ten years (and beyond) and thus, [we are] not concerned with obsolescence risk for its pipeline assets. The company would consider renewable investments if they met ET’s return thresholds. However, to date, returns for renewable projects are below that of midstream.”Overall, the analyst consensus on ET is a Moderate Buy, based on 13 recent reviews. The breakdown among those reviews skews positive, with 8 Buys versus 5 Holds. Shares are selling for $7.64, and the average price target of $11.85 implies an upside of 55%. (See ET stock analysis on TipRanks)MPLX LP (MPLX)Staying in the energy industry, we’ll look at MPLX. This company was spun off of Marathon Petroleum in 2012, to handle the oil giant’s midstream operations. Marathon still holds a controlling interest in MPLX, which in turn owns and operates assets in pipelines, terminals, inland river shipping, and refineries. MPLX operates in both the petroleum and natural gas midstream segments.MPLX has a seven-year history of growing its dividend, and the current payment of 68.75 cents per quarter is due out on May 15. Annualized, the dividend comes to $2.75 and gives a yield of 16%. Compared to current interest rates, which have been slashed to the bone in an attempt to counter the economic hit from the coronavirus shutdowns, this yield is a clear attraction for investors.The dividend is supported by a cash-rich business model. MPLX generated $4.1 billion in net cash during calendar year 2019, and returned $2.8 billion to shareholders through dividends and buybacks. The company has reduced its capital spending for 2020 to compensate for reduced income during the 1H20 economic downturn. The company a heavy net loss for Q1, of $2.7 billion, but still was able to generate $1 billion net cash.Michael Blum, quoted above, also cast his gaze on MPLX. He wrote, “We entered 2020 with a defensive mindset... We continue to expect near-term volatility as crude storage fills and WTI oil prices likely head lower… the sector is technically oversold, which should create long-term buying opportunities for investors that have the wherewithal to step in... for investors with a bit more risk appetite, [MPLX] appears attractive on a multi-year time horizon…”In line with this stance, Blum gives MPLX a Buy rating. His $24 price target implies a strong upside potential here of 38%.For the most part, Wall Street appears to agree with Blum on MPLX. The stock has received 11 recent reviews, of which 8 are Buys and 3 are Holds, making the analyst consensus rating a Moderate Buy. Shares are currently trading for $17.72, while the average price target of $21.80 suggests a one-year upside potential of 23%. (See MPLX stock analysis on TipRanks)Bain Capital Specialty Finance (BCSF)The world of business development companies (BDCs) has long sparked the interest of investors. These companies invest capital into the business world, earning their own profits on the returns. Bain has $105 billion in assets under management, in real estate, venture capital, and both private and public equity. Current economic conditions have hit Bain hard, as many of the company’s portfolio assets are underperforming due to the coronavirus shutdowns.Despite volatile earnings, Bain is maintaining its dividend. The 41-cent dividend is sustainable at current earnings levels, and has been held steady for the past six quarter – but the payout ratio of 93% indicates that there is not much slack here. The yield, however, is 15.6%, so for investors willing to shoulder the risk, the reward may be substantial.Well Fargo analyst Finian O’Shea sees too much risk here to justify the possible reward. The analyst points out that BCSF has started process to open up a rights offering, putting common stock at a discount. This is a move to raise new capital fast, and shows softness in the stock’s position. O’Shea writes, “…this is the first of what the market speculates as a wave of below-NAV issuance in the BDC industry. We don’t see a big wave noting BCSF was more leveraged, at 1.72x net including revolvers as of 12/31 – so there was not a lot of mark to market leeway.”To this end, O’Shea rates the stock a Sell, predicting it will underperform in the coming year. In line with this, O’Shea cut the price target by nearly half, to $9.50, suggesting an 11% downside from current levels. (To watch O’Shea’s track record, click here)The Wall Street analyst corps, generally, are cautious on this stock. The consensus rating, a Hold, is based on a single Buy along with 2 Holds and 1 Sell. The upside is also modest; the average price target of $10.67 indicates room for just 0.66% growth from the $10.60 share price. (See Bain Capital stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.