Energy Transfer Remains A Strong Buy After A Solid Q1 Performance

Energy Transfer remains a Strong Buy after a jaw-dropping Q1, with distributable cash flow surging to $2.7B and guidance raised by $750M. ET's growth is shifting from risky greenfield projects to high-ROIC brownfield expansions, leveraging irreplaceable existing assets and short-cycle projects, especially in Texas. Many investors are concerned with ET's debt, but a sub-4.0x leverage ratio is practically here.