Why Energy Transfer Stock Surged 15% in May and Continues to Rally
After a strong run-up in April, shares of Energy Transfer (NYSE: ET) rallied even higher and jumped 15% in the month of May, according to data provided by S&P Global Market Intelligence. Bumper first-quarter numbers coupled with rising oil prices fueled investor enthusiasm in the midstream oil and gas stock.
Importantly, some of the things management highlighted during Energy Transfer's Q1 earnings call hint at higher potential returns for shareholders, which partly explains why the stock has continued to rally and is already up 10.5% in June so far.
Energy Transfer earned record net income of $3.29 billion and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) worth $5.04 billion in the first quarter. It was an exceptional quarter, as Energy Transfer made the most of the Texas winter storm by transporting and supplying natural gas available at its facilities to power plants. The supply crunch triggered by power cuts also meant Energy Transfer could sell huge volumes at high prices and earn an incremental $2.4 billion in adjusted EBITDA.
Source Fool.com
