If You Invested $1,000 In Energy Transfer (ET) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.

Energy Transfer's Bumpy Ride: One company that has been a strong performer in the past two years has been midstream oil and gas infrastructure company Energy Transfer LP ET.

Energy Transfer has been a lackluster long-term investment, generating a total return of just 14.4% over the past five years. However, improving energy market fundamentals and supply disruptions triggered by Russia's invasion of Ukraine have brought the stock back to life in the past year.

Oil and natural gas prices recently both hit multi-year highs as booming global demand recovery created energy supply shortages around the world, particularly in China. At the same time, Energy Transfer provides investors with a reliable 8.7% dividend yield, which is particularly attractive given historically high inflation.

Traditional oil and gas stocks have fallen out of favor with investors over the past decade as alternative energy stocks have become popular investments. However, the U.S. has the potential to become a major global NGL exporter in the coming years, which would potentially position Energy Transfer well for the long term.

In the third quarter of 2022, Energy Transfer reported a record 28% growth in intrastate natural gas transportation volumes and 47% growth in midstream gathered volumes.

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At the beginning of 2020, Energy Transfer shares were trading at just $12.95. By the beginning of March, the stock was down to $11.20 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.

When the market crashed during the U.S. COVID-19 outbreak, Energy Transfer shares dropped as low as $3.75 on March 18, 2020, during the height of the pandemic fears.

When the market bounced in late March 2020, Energy Transfer began to rebound as well. In fact, the stock made it back up to $8.23 by May 1.

Unfortunately, when the market continued its recovery in the second half of 2020, Energy Transfer shares lagged as investors grew concerned about persistently low oil and gas prices and Energy Transfer’s bloated balance sheet.

Energy Transfer In 2022, Beyond: Fortunately for investors, 2021 and 2022 have been filled with positive catalysts for Energy Transfer. A massive winter storm in Texas in early 2021 created an opportunity for Energy Transfer, which generated an additional $2.4 billion in earnings.

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In addition, the U.S. Army Corps of Engineers and the U.S. District Court ruled the company’s disputed Dakota Access Pipeline can remain open during an ongoing environmental review. In addition, Energy Transfer acquired Enable Midstream Partners $7.2 billion, which will help boost Energy Transfer’s cash flow and expand its infrastructure footprint.

Energy Transfer's share price continued to rise amid the positive catalysts and soaring energy prices, topping out at $12.95 in October 2022 before pulling back to $11.95 today.

Investors who bought Energy Transfer on the day it hit its 2020 pandemic low and held on have generated an incredible return on their investment. In fact, $1,000 in Energy Transfer stock bought on March 18, 2020, would be worth about $3,426 today, assuming reinvested dividends.

Looking ahead, analysts are expecting Energy Transfer's stock to continue to make new highs in the next 12 months. The average price target among the 16 analysts covering the stock is $16, suggesting a 33.2% upside from current levels.