10 Cheap Energy Stocks to Buy Now

6. Energy Transfer LP (NYSE:ET)

Forward P/E Ratio as of May 11: 10.38

Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America, with approximately 130,000 miles of pipelines and associated energy infrastructure in 44 states.

Energy Transfer LP (NYSE:ET) reported net income attributable to partners for Q1 2025 to be $1.32 billion, compared to $1.24 billion for the prior year period. The company’s EPS of $0.36 was in-line with market expectations. ET generated over $2.3 billion of distributable cash flow during the quarter, down slightly from less than $2.4 billion in the year-ago period.

Energy Transfer LP (NYSE:ET) recently increased its quarterly dividend by 3% to $0.3275 per share. The company has plans to continue increasing its distribution by about 3% to 5% a year moving forward and boasts an impressive annual dividend yield of 7.61%.

Energy Transfer LP (NYSE:ET) remains focused on expansions, with plans to spend $5 billion on growth projects this year. The company is making progress on its Lake Charles LNG facility and expects to make a final decision on whether to go through with the long-awaited project by the end of the year. Moreover, it recently secured a groundbreaking agreement with CloudBurst Data Centers, marking its first publicized partnership in the data center space. With interest from over 70 prospective data centers across 12 states, ET is set to benefit significantly from the increasing demand for reliable energy sources.