Analyst Note
| Stephen Ellis |Energy Transfer’s third-quarter results were good, and it reiterated its full-year EBITDA guidance with a midpoint of $13.1 billion compared with our estimate of $13.15 billion. Management said it may come in at the lower end of the range, about $12.9 billion, but we expect there to be ample marketing opportunities in this environment, particularly on the gas and natural gas liquids side that Energy Transfer should be able to capture. With its recent expansion at the Nederlands terminal, the partnership has ramped its natural gas liquids exports to a leading position, and export volumes are expected to ramp up more over the next year. We will maintain our fair value estimate and no-moat rating while we incorporate these results into our model.