Energy Transfer (NYSE: ET) is a top choice for income-focused investors, boasting a 7.4% yield with growing distributions. The company is embarking on a new growth phase with exciting projects in its pipeline, including a $5.3 billion Desert Southwest natural gas pipeline. It anticipates substantial long-term growth opportunities in the energy sector.

The company is investing $5 billion in growth capital expenditures this year, with a focus on natural gas projects. Despite a 3% increase in adjusted EBITDA in Q2, distributable cash flow to partners fell 1%. Energy Transfer expects its full-year EBITDA to be at or slightly below the low end of guidance, impacting its stock performance temporarily.

Energy Transfer’s long-term prospects look promising, with a robust distribution well-covered by its DCF. The company aims to grow its distribution by 3-5% annually, with 90% of its 2025 EBITDA coming from fee-based operations. With a forward EV/EBITDA multiple of 8.1 times and numerous growth projects ahead, Energy Transfer presents a compelling investment opportunity.

Investors considering Energy Transfer should evaluate its strong financial position, growing distribution, and future growth potential. While the company may have slightly revised its guidance, its focus on expanding its project portfolio and maintaining a healthy distribution rate make it an attractive option for income-oriented investors looking for long-term growth.

Read more at Yahoo Finance: Is This High-Yield Stock a Buy as Growth Projects Pile Up?