Energy Transfer $ET stock is testing a downtrend channel breakout pattern as of January 8, 2023. The stock is in a technical uptrend. We are seeing a theme of energy related stocks with bullish patterns as of January 8, 2023.
Energy Transfer Announces Gulf Run Transmission Is In Service
Energy Transfer announced on December 15, 2022, that it had received FERC approval to put the Gulf Run pipeline into service, bringing domestic natural gas from important US producing regions to meet the rapidly expanding demand along the Gulf Coast and on global markets. The newly built 135-mile, 42-inch natural gas pipeline in Louisiana has a 1.65 Bcf/day capacity and room for expansion.
The vast intrastate and interstate pipeline network of Energy Transfer transports natural gas to Gulf Run, including production straight from the Haynesville Shale. The pipeline can handle volumes coming from all of the major US natural gas basins, including the Permian Basin, the Barnett Shale, the Marcellus and Utica shale, East Texas, the Arkoma, and the Anadarko basins. The pipeline is divided into two zones. Zone 1 links the Perryville markets to the Carthage Hub, while Zone 2 stretches south and connects to the Golden Pass Pipeline and the Energy Transfer Trunkline network. The Zone 1 segment can deliver sizable volumes to Perryville, the Golden Pass, and the Trunkline systems thanks to its ability to flow in both directions.
Energy Transfer transports natural gas, crude oil, natural gas liquids, and refined products along approximately 120,000 miles of pipeline and associated infrastructure spread across 41 states. In Louisiana, Energy Transfer is in charge of more than 8,800 miles of pipeline.
Energy Transfer has a strategic presence across all of the main US production basins and manages one of the largest and most diversified portfolios of energy assets in the country. The main business activities of Energy Transfer are complementary natural gas midstream, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids, and refined product transportation and terminaling assets.
Due to the potential expansion of the Lake Charles LNG project, Energy Transfer is about to enter the international natural gas export market. In the coming years, the natural gas market is anticipated to be competitive, presenting opportunities for Energy Transfer in the midstream and international export sectors. The company has every opportunity to continue generating new shareholder value for years to come thanks to the favorable environment.
Energy Transfer LP initiated with a Buy at Citi
Spiro Dounis, a Citi analyst, began covering Energy Transfer LP on December 8, 2022, with a Buy rating and a $16 price target. Despite acknowledging the need to be selective in this environment, the analyst launched coverage of 23 midstream stocks with a positive cash flow outlook. In a research note, Dounis informs investors that the sector offers a compelling mix of growth and yield. Enterprise Products Partners, Targa Resources, and Cheniere Energy are his top picks. According to the analyst, the midstream sector has arguably never been better prepared for macro headwinds because leverage and capital spending have decreased significantly.