Energy Transfer Continues To Mint Money in Strong Gas Market in Q3

Energy Transfer’s third-quarter results were strong as expected, and the partnership boosted 2022 EBITDA guidance to a midpoint of $12.9 billion, matching our own estimate. Similar to prior quarters, Energy Transfer’s marketing and optimization business continues to capture wide spreads, boosting results. Higher volumes across gas transportation, gathering, and natural gas liquids exports also contributed, helped by the recently completed Enable deal. Energy Transfer continues to acquire assets, with the Woodford Express midcontinent gas gathering system for $485 million added in August. After updating our model for the latest results, we will maintain our $17.50 fair value estimate and no-moat rating.