ET-PC

Energy Transfer Series C preferred offers a high yield backed by one of the largest midstream energy infrastructure networks in North America. Energy Transfer operates approximately 125,000 miles of pipelines transporting natural gas, crude oil, NGLs, and refined products. The midstream business model is attractive because pipelines generate fee-based revenue that is less sensitive to commodity prices than upstream production.

The elevated yield on ET-PC reflects several factors: Energy Transfer's aggressive use of leverage, its MLP structure's complexity, and the ESG-related selling pressure that has reduced valuations across the energy infrastructure sector. For investors who view energy infrastructure as essential (which it is), these concerns represent an opportunity to earn an outsized yield.

Energy Transfer under CEO Kelcy Warren has been aggressive about building and acquiring assets, creating one of the most comprehensive pipeline networks in America. The company generates more than enough distributable cash flow to cover preferred distributions, and its scale provides diversification across commodities, regions, and customers.