energy transfer’s et secondquarter results were strong as expected the partnership boosted 2022 ebitda guidance to a midpoint of 127 billion from 124 billion last quarter mainly in our view due to strong marketing profits which benefit from volatility and wide spreads more so than any other us and canadian midstream entity we cover energy transfer leans into profiting from volatility in the energy market so this is an ideal environment management confirmed this by stating on the conference call that the revised guidance could be exceeded if oil and gas prices and spreads remain strong for the rest of the year as our 2022 ebitda forecast already stood at 127 billion we do not expect any material changes to our forecast leaving our fair value estimate unchanged our nomoat rating also remains unchanged energy transfer’s investment of its cash windfall this year is still mixed in our view on the one hand it increased its distribution again to 023 per unit 092 annualized up more than 50 from last year and it appears to be on pace to achieve its 0305 per unit or 122 annualized by the end of the year or early 2023 this large investment in the distribution ignores its deeply undervalued stock representing substantial lost unitholder value we also remain skeptical of seeking organic or ma opportunities within petrochemicals especially in this strong environment on the other hand pursuing a final investment decision on lake charles lng the potential expansion of the recently acquired gulf run to 26 billion cubic feet per day from 165 billion cubic feet per day purely via compression and the warrior pipeline adding gas takeaway capacity to the permian all look to be very attractive investments