Energy Transfer Earnings: Growth, Growth, and More Growth With Crestwood

Energy Transfer's third-quarter results were good, and with the Crestwood deal expected to close Nov. 3, the year 2024 is already expected to have healthy growth. EBITDA in 2023, factoring in about $200 million of Crestwood contributions, is now expected to be about $13.6 billion. The guidance implies about $13.4 billion in contributions from Energy Transfer, roughly $100 million more than a quarter ago, so Energy Transfer is outperforming as well. EBITDA in 2024 will likely be around $15 billion, after about $870 million in Crestwood contributions. We expect to tweak our forecasts, but our fair value estimate of $17.50 and no-moat rating will be unchanged.