The company’s business model provides a great deal of insulation against commodity prices.
95% of the company’s cash flow comes from fee-based contracts that have minimum volume commitments.
Energy Transfer has some growth projects coming online over the next few months that should allow it to be FCF-positive next year.
The company should not have any trouble maintaining its 22% distribution.
Read More: Energy Transfer: A Great Opportunity In This High-Yielder (NYSE:ET)