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Kelcy Warren, the co-founder and CEO of midstream energy company Energy Transfer LP (ET), is a familiar name who’s been featured in various Insider Weekends articles due to the sheer size of his purchases. This time was no different, as Mr. Warren purchased nearly $39 million worth of shares over the last week – adding up to a total of around $220 million Energy Transfer shares purchased over the last year. Since his first series of purchases in August 2022, the stock has mostly been range bound between $10 to $13 a share. The stock is only up 13.25% this year but combined with a forward dividend yield of 9.24%, the total returns have been decent.
We last wrote about the company in a February 2023 article:
Energy Transfer LP (ET) is one of the largest midstream energy companies, with a wide variety of business segments and operations – ranging from natural gas transportation and storage to midstream activities (such as natural gas gathering, processing, and more). The company also has ventures in natural gas liquids and crude oil transportation. The complete list of Energy Transfer’s services can be seen below:
The insider who made a purchase of Energy Transfer this week was Kelcy Warren, the co-founder and Executive Chairman of the company. Over the last six months, Mr. Warren has purchased over $90 million of Energy Transfer stock, with his most recent purchase valued at $17.4 million. Since his purchases in September, the stock has not done a whole lot but then again this is a master limited partnership (MLP) with a large yield (forward yield of 9.49%) and the returns are most likely going to be driven by distributions instead of capital gains on the units.
Crude oil prices have dropped significantly over the last year from a high of over $120 per barrel to just over $76 right now. This was driven by the U.S. government releasing significant amounts of oil from the Strategic Petroleum Reserve, concerns about an impending recession driven by Fed policies and partial access to Russian oil. Crude oil futures prices seem to have relatively stabilized, with futures marginally higher than the spot price until June.