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Monty Rakusen January this year, I issued a bullish article on Energy Transfer ( NYSE: ET ) arguing that its dividend, which at that time yielded ~9%, was in a much safer position than several years ago when ET was forced to cut it. In the article I also highlighted several dynamics, which, in my opinion, introduced quite favorable conditions for ET to deliver strong total returns. In other words, the investment case did not revolve just around the dividend, but also around ET's organic and M&A growth potential.

Since the publication of this bull case, ET has outperformed the index and other popular midstream names for which I have also assigned buy ratings. Ycharts This situation, just as back when I reassessed the case after Q4, 2023 earnings report, could raise the question of a potential overvaluation and whether there is still a decent upside left for ET. Namely, April this year, I analyzed the Q4 report to see whether the fundamentals still justify above-average multiple and the run-up in the share price.



The combination of ET's strengthened balance sheet, steadily growing business segments and first signs of a more ambitious M&A program motivated me to maintain a bullish view on ET. Since then (April 14, 2024), ET has continued to deliver alpha over the MLP index. Let's now contextualize the most recent data points from Q1, 2024 earnings report with the current bull thesis to determine the current attractiveness of ET.

Yet, before we dissect the Q1 dynamics, I would li.

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