(Bloomberg) — A cash bonanza may help Energy Transfer LP deliver the highest return among major U.S. oil and gas pipeline operators.

Most Read from Bloomberg

  • Stocks Storm Back From 4% Rout to Close Higher: Markets Wrap

  • Dip Buyers Try to Save the Day as Stocks Trim Drop: Markets Wrap

  • Nvidia Quietly Prepares to Abandon $40 Billion Arm Bid

  • This Red-Hot Housing Market Is Betting Interest Rates Will Never Rise

  • Biden Bristles at Fox Inflation Query With Hot-Mic Expletive

The company owned by billionaire Kelcy Warren is seen reporting a record annual profit next month, boosted by sales of natural gas at skyrocketing prices during last February’s Texas freeze. The largest U.S. pipeline operator also signaled more cash will soon be returned to shareholders via dividends and buybacks as it has slashed debt following a decade of expansion.

The Dallas-based company, which operates more than 114,000 miles (183,000 kilometers) of pipelines across North America, trades at a discount to major rivals. Energy Transfer’s enterprise value is at 7.7 times the company’s forecast earnings before items such as taxes and interest. That compares with 10 times for Kinder Morgan Inc. and 9.6 times for Enterprise Products Partners LP.

Analysts are targeting a share price for Energy Transfer that is 55% above current levels, the biggest upside in the industry, according to data compiled by Bloomberg. The stock has risen about 12% this year, trailing an almost 16% gain in the S&P 500 Energy Index.

Most Read from Bloomberg Businessweek

  • The Charismatic Developer and the Ponzi Scheme That Suckered San Diego

  • The Tragicomedy of Boris Johnson Enters Its Final Act

  • Venture Investors’ $1.4 Billion Bet on News Faces a Reality Check

  • Italy’s Version of Groundhog Day in Play as Mario Draghi Eyes Shift

  • How Did ID.me Get Between You and Your Identity?

©2022 Bloomberg L.P.

(305) 707 0888