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Energy Transfer: First Shareholder Communication Shows Insider Buying And No Dividend Cut

Published Wed, 25 Mar 2020 13:26:52 -0400 on Seeking Alpha

Energy Transfer has released its investor presentation, its first shareholder communication since the oil crash.
This investor presentation shows strong insider buying and a willingness to cut capital before debt.
Energy Transfer is continuing to earn significant cash, and the company has continued their 2020 guidance in this presentation.
This past week, Energy Transfer (NYSE: ET) shared its most recent investor presentation. The first communication from management since the oil price collapse started in early-March, this communication is incredibly important for investors. As we'll see throughout this article, the latest data, supported by insider buying, indicates the company has strong potential and an affordable dividend.

Energy Transfer - BHGE
Energy Transfer Overview
Energy Transfer has an impressive portfolio of assets worth paying close attention to. The company's business has continued to execute well.

Energy Transfer Overview - Energy Transfer Investor Presentation
Energy Transfer has ~90 thousand miles of pipelines, moving ~30% of the U.S. natural gas and crude oil. The company is diversified geographically, however, it's worth noting that the vast majority of the company's operations are in the United States. However, what's worth distinguishing here is that the company has access to virtually every supply basin and export markets.
This is important because there are significant aspects of the U.S. domestic fossil fuel markets not affected by the recent oil crash. Basins that are heavy natural gas producers, or export infrastructure tied to power generation (whether that's power plants in the US or LNG exportation abroad) can survive independent of oil production. More importantly, electric power consumption continues even through COVID-19.
Financially, we'll discuss this in more detail, but Energy Transfer has a strong financial picture. While recent market price declines have pushed the company's market... Read more