Energy Transfer (ET), mcap=$35.6bn, price $11.54 vs $10.31

MLP, the largest owner of energy transportation assets in the country. The market is wrong in valuing ET as if its cash flows are going to be in rapid decline – in fact, the company is positioned to meaningfully grow its already high (25%) cash flow yield. Expected to re-rate on the back of stabilizing CAPEX and market starting to appreciate cashflow inherent in the company. Stable revenue stream with built-in inflators tied to PPI. The global demand for hydrocarbons continues to grow and is expected to do so for at least the next 10 years. The US has some of the best combinations of infrastructure, and quality rock, and is not a war-torn country, political basket case, or nationalization risk. And ET with its unparalleled breadth and scale is exposed to all these positive trends with its comprehensive network of infrastructure.