In a bold display of confidence and commitment, Kelcy Warren, the executive chairman of Dallas-based Energy Transfer, has bolstered his personal stake in the company with a nearly $40 million investment. The move comes in the wake of a $7 billion deal to extend Energy Transfer’s oil and gas pipeline network. Warren, who co-founded the pipeline giant in 1996, purchased 3 million shares in three separate transactions last week and this week, as revealed in a regulatory filing.

This latest investment is not Warren’s first significant purchase of Energy Transfer shares. Since January 2018, he has acquired over 103 million shares, a total investment of just under $950 million. This buying trend by top executives is often seen as a strong signal of their confidence in the company and is usually carried out when they perceive the stock price to be undervalued. Warren’s net worth, currently estimated at over $5.6 billion, is mostly comprised of Energy Transfer shares, underscoring his faith in the company he helped establish.

Energy Transfer Executive Chairman Increases Personal Stake in Company

Kelcy Warren, the executive chairman of Dallas-based Energy Transfer, has invested almost $40 million to increase his personal stake in the company. This follows a recent $7 billion deal to extend Energy Transfer’s oil and gas pipeline network. According to a regulatory filing, Warren purchased 3 million shares in three separate transactions over the past week.

A Vote of Confidence in Energy Transfer

Warren, who co-founded the pipeline giant in 1996, has made significant investments in the company over the years. Since 2018, he has acquired over 103 million Energy Transfer shares, a total investment of just under $950 million. This kind of insider trading is often seen as a sign of confidence in the company by top executives, particularly when they believe the stock price is undervalued.

Energy Transfer’s shares were trading at $13 on Tuesday, the same price as Warren’s most recent stock purchase. Warren’s net worth is estimated at over $5.6 billion, with the majority of his fortune tied up in Energy Transfer shares, according to Bloomberg’s real-time billionaires index.

Expansion of Energy Transfer’s Pipeline Network

Energy Transfer recently announced the acquisition of Houston-based Crestwood Equity Partners in a $7.1 billion deal, including $3.3 billion in debt. This move expands the company’s assets in the Williston and Delaware oil and gas basins and provides an entry into the Powder River basin.

The deal also includes additional oil and gas pipelines and storage facilities in multiple regions, including Texas, Montana, New Mexico, North and South Dakota, Wyoming, and parts of Canada. These facilities can gather about 2 billion cubic feet of gas and 340,000 barrels of crude a day, and process 1.4 billion cubic feet of gas a day.

A Key Player in U.S. Oil and Gas Infrastructure

Over the years, Energy Transfer has established itself as a major player in the U.S. oil and gas sector, transporting oil and gas from basins across the country to refineries and shipping ports. The company has been aggressive in its expansion strategy, closing deals amounting to nearly $14 billion in recent years.

Boasting close to 125,000 miles of pipeline and related infrastructure in 41 states, Energy Transfer is one of the largest public companies in Dallas-Fort Worth. The company reported just under $90 billion in revenue and nearly $6 billion in profit in 2022.

Takeaways

Warren’s recent investment in Energy Transfer signals his confidence in the company’s future growth and profitability. The acquisition of Crestwood Equity Partners not only expands Energy Transfer’s reach into new oil and gas basins but also strengthens its existing infrastructure. This aggressive expansion strategy, coupled with strong insider buying, may be indicative of a positive future trajectory for Energy Transfer.