Energy Transfer's 426th-Ranked Trading Volume Spawns High-Return Investment Strategy

On August 1, 2025, Energy Transfer (ET) closed with a 1.39% decline, trading at a volume of $0.30 billion, ranking 426th in market activity. The midstream energy company, operating a diversified network of pipelines and infrastructure, reported stable fee-based cash flow from long-term contracts, with 90% of its EBITDA derived from fixed-rate agreements. Its leverage ratio remains within target ranges, supporting investment-grade credit ratings and enabling continued expansion projects.

Energy Transfer’s business model emphasizes organic growth through capital expenditures and strategic acquisitions. Recent projects include $5 billion allocated for gas processing plants, export terminals, and a new natural gas pipeline, with incremental earnings expected by 2026. Acquisitions such as WTG Midstream ($3.3 billion) and Lotus Midstream ($1.5 billion) have expanded its asset base, enhancing cash flow and operational scale. The company’s focus on Permian Basin production, U.S. power demand, and global LNG exports positions it for long-term earnings growth.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% and generating an excess return of 137.53%. This consistent high return underscores the effectiveness of this approach within the current market environment, where liquidity concentration is a key factor in driving stock prices, particularly over short-term horizons.