Energy Transfer LP (NYSEAMERICAN:ET) Announces Dividend Increase - $0.34 Per Share

Key Points

• Energy Transfer increased its quarterly dividend by 0.7% to $0.3425 per share, payable November 19 to shareholders of record on November 6. The annualized dividend is $1.37, representing a 6.8% yield.
• The dividend remains supported by earnings, with a current payout ratio of 87.2% and an expected future payout ratio of about 80.5% based on analysts’ forecasts.
• Energy Transfer reported quarterly EPS of $0.59, exceeding the $0.38 consensus estimate, while revenue rose 78.4% year over year to $34.33 billion. Insiders purchased more than 1 million shares worth approximately $21.5 million during the latest quarter.

Energy Transfer LP (NYSEAMERICAN:ET - Get Free Report) declared a quarterly dividend on Thursday, October 22nd. Shareholders of record on Friday, November 6th will be given a dividend of $0.3425 per share by the pipeline company on Thursday, November 19th. This represents a $1.37 annualized dividend and a yield of 6.8%. The ex-dividend date of this dividend is Friday, November 6th. This is a 0.7% increase from Energy Transfer's previous quarterly dividend of $0.34.

Energy Transfer has a dividend payout ratio of 87.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Energy Transfer to earn $1.69 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 80.5%.

Energy Transfer Price Performance

Shares of NYSEAMERICAN ET opened at $20.04 on Friday. The company has a current ratio of 1.16, a quick ratio of 0.94 and a debt-to-equity ratio of 1.45. Energy Transfer has a twelve month low of $16.18 and a twelve month high of $21.84. The stock has a 50 day moving average of $20.83 and a two-hundred day moving average of $20.05. The stock has a market cap of $69.00 billion, a P/E ratio of 13.63 and a beta of 0.60.

Energy Transfer (NYSEAMERICAN:ET - Get Free Report) last announced its earnings results on Tuesday, August 4th. The pipeline company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.21. The business had revenue of $34.33 billion for the quarter, compared to analyst estimates of $27.71 billion. Energy Transfer had a net margin of 4.87% and a return on equity of 11.55%. The company's revenue for the quarter was up 78.4% compared to the same quarter last year. During the same period last year, the firm posted $0.32 earnings per share. On average, research analysts forecast that Energy Transfer will post 1.73 earnings per share for the current year.

Insider Activity

In other Energy Transfer news, Director Kelcy Warren purchased 647,968 shares of Energy Transfer stock in a transaction on Wednesday, August 19th. The shares were bought at an average price of $21.26 per share, with a total value of $13,775,799.68. Following the completion of the acquisition, the director directly owned 147,901,879 shares of the company's stock, valued at approximately $3,144,393,947.54. This trade represents a 0.44% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James Perry purchased 12,359 shares of the company's stock in a transaction on Friday, August 7th. The shares were bought at an average cost of $20.23 per share, with a total value of $250,022.57. Following the transaction, the director directly owned 208,046 shares of the company's stock, valued at $4,208,770.58. This represents a 6.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 1,012,359 shares of company stock worth $21,513,543 over the last quarter. Insiders own 3.28% of the company's stock.

Institutional Investors Weigh In On Energy Transfer

Hedge funds have recently made changes to their positions in the business. Summit Securities Group LLC increased its stake in shares of Energy Transfer by 179.0% during the 1st quarter. Summit Securities Group LLC now owns 162,100 shares of the pipeline company's stock valued at $3,129,000 after acquiring an additional 104,000 shares during the last quarter. North Star Investment Management Corp. boosted its position in shares of Energy Transfer by 39.0% in the first quarter. North Star Investment Management Corp. now owns 224,439 shares of the pipeline company's stock worth $4,332,000 after acquiring an additional 62,916 shares during the last quarter. Sanctuary Advisors LLC boosted its position in shares of Energy Transfer by 15.8% in the first quarter. Sanctuary Advisors LLC now owns 1,888,661 shares of the pipeline company's stock worth $36,451,000 after acquiring an additional 257,954 shares during the last quarter. Mizuho Markets Americas LLC purchased a new stake in Energy Transfer in the first quarter valued at approximately $61,760,000. Finally, Independent Financial Group LLC purchased a new stake in Energy Transfer in the first quarter valued at approximately $2,170,000. Institutional investors and hedge funds own 38.22% of the company's stock.

About Energy Transfer

Energy Transfer LP is a diversified energy infrastructure company headquartered in Dallas, Texas. The partnership owns and operates a broad network of pipelines, processing facilities, storage assets and terminals that support the movement of natural gas, natural gas liquids, crude oil and refined products across the United States.

The company’s operations include gathering and processing natural gas, transporting and storing natural gas and NGLs, fractionating NGLs into component products, and transporting crude oil and refined products.

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