What's next for the soaring Energy Transfer stock?

Energy Transfer stock continued its strong rally, reaching its all-time high, as energy prices continued rising. ET also jumped to a record high as the company prepares to make a big move from New York to Texas. It has jumped by over 26% in the last 12 months and 31% this year.

Energy Transfer stock jumps as it prepares listing change

ET stock has done well in the past decade, making it one of the best-performing energy companies in the United States. This surge has turned it into a $75 billion juggernaut and the biggest one in the industry.

Now, the company is preparing to make a big move. According to the Wall Street Journal, it is planning to shift its listing from the New York Stock Exchange (NYSE) to the Texas Stock Exchange. That move will make it the biggest defector to the exchange upstart that is challenging the dominance of the NYSE and Nasdaq. 

Launched in 2024, the exchange is backed by top companies like BlackRock, Citadel Securities, Charles Schwab, and Citigroup. Most notably, Kelcy Warren, Energy Transfer’s executive chairman, is an investor in the company with a 30% stake.

READ MORE: Here’s why MLP stocks like Energy Transfer, Enterprise Partners are soaring

Energy Transfer’s business is thriving

For starters, Energy Transfer is a company involved in the transportation of energy products in the US. It owns the largest intrastate pipeline in the US, providing energy logistics to major trading hubs in the country. 

The company’s midstream services include natural gas gathering, compression, treating, dehydration, and processing. Its business is now thriving as US gas and oil production continues to grow. The US is now producing over 13 million barrels of oil per day, and exporting a significant amount because of the US-Iran war.

The most recent results showed that Energy Transfer’s revenue jumped to $34.3 billion in the second quarter and $62.1 billion in the first six months of the year. Its net income, on the other hand, rose to $2.53 billion from $1.4 billion in the same period last year. 

The soaring revenue made it possible to pay down its massive debt. It spent $934 million in interest expense in the last quarter and $1.88 billion in the first six months of the year.

This revenue growth will continue, with analysts expecting its annual revenue to jump by 44% to $122 billion. This performance makes it one of the best dividend stocks in the US.

Energy Transfer stock technical analysis

ET stock chart | Source: TradingView

The weekly chart shows that the ET stock has been in a strong bull run in the past few years and is now at the highest point on record. It has recently crossed the important resistance level of $20.3, its highest point on May 18 this year.

It has jumped above the upper side of the ascending triangle pattern. Also, it has remained above all moving averages, while the Average Directional Index (ADX) has jumped to 40.

Therefore, the stock will likely continue rising as bulls target the key resistance level at $25. A drop below $20.3 will invalidate the bullish outlook.