Energy Transfer: Trump Administration Tailwinds May Not Be Fully Priced In (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• A Trump administration is good for Energy Transfer's business. But the market's consensus forward EBITDA estimates look too low considering historical volumes and reserves growth in natural gas.
• ET is well-positioned to replenish a higher than usual dip in natural gas storage levels. Seasonality data shows January to have the highest win rate for ET stock.
• ET is trading at a small premium vs its historical valuation multiples and a lower-than usual discount vs peers. However, I think this is acceptable given the tailwinds.
• ET vs SPX500 is showing an ideal bullish technical setup; a retest after a breakout from an accumulating wedge.
• Legal battles with WMB is a risk that can have material financial impact for ET's EBITDA. WMB has a good track record of winning litigations against ET.

Read the full article here.