Insiders have purchased units of energy transfer (NYSE: ET) Apple recently bought another 3 million units from the marketing giant, while the company’s co-CEO Thomas Long bought an additional 20,000 units.
Warren now owns about 301.5 million units, while Long now has about 1.1 million units, according to data from Capital IQ. Warren is Top unit holder Master Limited Partnership (MLP) With 8.8% of Featured UnitsInsiders own more than 10% of outstanding units, the highest percentage ever among the country’s largest investment companies. Pipeline companies.
A high percentage of insider ownership aligns the interests of management with those of outside shareholders. At the same time, such purchases tend to indicate that insiders are optimistic about the company’s prospects.
Energy Transfer insiders have reason to be optimistic. The company’s growth rate has accelerated sharply, thanks to recently completed organic expansion projects, strong market conditions, and profitable acquisitions. Its operations set several records in the second quarter, helping to boost its distributable cash flow by 32%.
The middle giant is located in strong The company is positioned to continue to grow value for investors in the future. It recently closed another acquisition, buying WTG Midstream for approximately $3.1 billion. The company expects this deal alone to add $0.07 per unit to its distributable cash flow by 2027. That’s enough to support its distribution growth (3% to 5% annually, or approximately $0.01 per unit) for several years.
Energy Transfer pays cash dividends to investors which currently yield around 8%, several times higher than S&P 500 Index Return less than 1.5%.
This increased stream of income alone makes MLP an attractive investment for those who are comfortable receiving Federal Tax Form K-1 These entities send investors home for tax purposes every year. Add in Its growth, and energy transfer It is an attractive investment opportunity these days, This is why It’s no surprise to see insiders buying.
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Matt Delallo The Motley Fool has a position in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has Disclosure Policy.
Energy Transfer Co-CEO and CEO Increase Their Stake in the Company. Should You Invest in It Too? Originally posted by The Motley Fool