Energy Transfer LP (NYSE:ET) has reported a significant share purchase by its Co-CEO, Thomas E. Long, according to the latest SEC filings. On August 12, 2024, Long acquired 20,000 common units of the company at a price of $15.68 per share, amounting to a total investment of $313,600.
This transaction indicates a vote of confidence from the Co-CEO in the company's future prospects. Long's purchase comes as a notable addition to his holdings, which following this acquisition, total 4,308,859 common units of Energy Transfer.
Investors often look to insider transactions such as these to gain insights into the company's financial health and the leadership's outlook on the company's value. While the reasons behind Long's purchase are not disclosed, such acquisitions can sometimes signal an insider's bullish view on the company's stock.
Energy Transfer, a Dallas-based company specializing in natural gas transmission, has been a player in the energy sector with a focus on pipeline transportation, storage, and other related energy services.
The details of the transaction were made public through an SEC Form 4 filing, with Peggy J. Harrison signing on behalf of Mr. Long as his attorney-in-fact. Energy Transfer's stock, listed on the New York Stock Exchange under the ticker ET, may see investor sentiment influenced by such insider activity.
Investors and analysts alike will be watching to see how this insider transaction might align with the company's performance in the coming quarters.
In other recent news, Energy Transfer LP has made several significant developments. The company has announced a secondary public offering of 38,755,996 common units, priced at $15.78 per unit. The units are being sold by WTG Midstream LLC and an affiliate of Stonepeak, with Energy Transfer not receiving any proceeds from the sale. Barclays is acting as the underwriter for this offering.
Furthermore, Energy Transfer reported strong financial results for the second quarter of 2024, with adjusted EBITDA rising to $3.76 billion from $3.1 billion in the same quarter of the previous year. The distributable cash flow also saw an increase, reaching $2 billion compared to $1.6 billion in Q2 2023.
In addition, Energy Transfer has recently completed the acquisition of WTG Midstream Holdings LLC for approximately $3.25 billion, aiming to enhance its operations and access to natural gas and natural gas liquids in the Permian Basin. The company also formed a joint venture with Sunoco LP, merging their crude oil and produced water gathering operations in the Permian Basin. These are recent developments that continue to position Energy Transfer as a key player in the U.S. energy sector.
InvestingPro Insights
Following the significant share purchase by Energy Transfer's Co-CEO, Thomas E. Long, the company's financial metrics and market performance offer additional insights. With a robust market capitalization of $53.15 billion, Energy Transfer stands as a substantial entity in the energy sector. The company's P/E ratio stands at 12.97, reflecting investor perceptions of its earnings potential relative to its current share price.
Energy Transfer's commitment to shareholder returns is evident, with a noteworthy dividend yield of 8.23%. This aligns with an InvestingPro Tip that highlights the company's history of significant dividend payments to shareholders, having maintained these payments for 19 consecutive years. Moreover, the company's stock is trading near its 52-week high, at 94.36% of the peak value, which could suggest market optimism about its performance.
While the company has demonstrated a solid revenue growth rate of 3.56% over the last twelve months as of Q2 2024, an InvestingPro Tip points to weak gross profit margins, which stand at 18.05%. Despite this, analysts expect the company to remain profitable this year, which is supported by the positive EBITDA growth of 15.66% in the same period.
For investors seeking a deeper analysis of Energy Transfer's financial health and future prospects, additional InvestingPro Tips are available. Currently, there are 6 more tips listed on InvestingPro that could further inform investment decisions regarding the company.
These insights and tips can be accessed directly through the InvestingPro platform at https://www.investing.com/pro/ET, offering a comprehensive tool for investors to evaluate the company's stock performance and potential investment opportunities.
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