This post is calling out some primo LEAP opportunities for the midstream stock ET.
I’m loaded with Jan 26 Calls for the strike price of $22 and $25. This post is a play on the bullish case for domestic US energy/oil.
**Highlights for why you might be interested:**
* Recent agreement reached with a tech company I’ve never heard of, [CloudBurst Data Centers on Feb 10th](https://ir.energytransfer.com/news-releases/news-release-details/energy-transfer-and-cloudburst-sign-agreement-natural-gas-supply). This is the first publicly made agreement and a significant precedent for partnerships in midstream at this scale. ET supposedly [“has requests from more than 70 prospective data centers in 12 states."](https://www.fool.com/investing/2025/02/19/energy-transfer-looks-to-turbocharge-growth-spendi/) Everyone knows nuclear companies are eventually going to be the standard, but that’s only if the industry can get there in 5+ years. When the OKLO and friends bubble pops, Tech companies will need to be realistic about how to get their energy and pivot to domestic energy sourcing: enter ET
* Biden banned [new off-shore drilling in the US just before leaving office](https://news.mongabay.com/short-article/president-biden-bans-offshore-oil-and-gas-drilling-for-many-u-s-waters). Why do you think Trump is calling the Gulf of Mexico the Gulf of America? It’s so that we can be confident drilling in our own backyard again. If this executive order is revered, midstream is positioned to capitalize on any increase of drilling.
* ET is putting [$5 billion into growth over 2025, up $3 billion from 2024](https://www.morningstar.com/stocks/energy-transfer-earnings-growth-2024-sets-up-an-impressive-outlook-2025-27). More growth === more fees === more profit for investors. As well, In their recent Q$ earnings, [ET saw it’s EBITDA grow 8%](https://www.fool.com/investing/2025/02/19/energy-transfer-looks-to-turbocharge-growth-spendi/), and forecast a continued increase for the 2025 fiscal year. This is important since EBITDA is the main metric that midstream companies use to grow.
* ET currently trades at an enterprise value (EV)-to-EBITDA multiple of about 8.5 times the high end of its 2025 guidance. While its valuation has risen, it's still significantly where it traded before the pandemic.
* ET *increased* dividends on their Q4 earnings for fy '24. Take this as you will for confidence on outlook for fy 2025.
Risk/Callouts:
ET is transparent that is expects a lot of [its growth services to go into service by 2026](https://www.fool.com/investing/2025/02/19/energy-transfer-looks-to-turbocharge-growth-spendi). Depending on the patience as an investor with other opportunities in the market, you might not be rushing to get Call options/positions on this stock. That’s why we’re getting LEAPS for when (not if) future catalysts and growth start getting priced in.
Positions:
https://preview.redd.it/p5sr550ugzke1.png?width=1500&format=png&auto=webp&s=74b23af02aa63f3469ad7409148e780c54b27e4d
