Energy Transfer’s EV/EBITDA is low, and its distribution yield is high, for the same reason—the company is risky (due largely to uncertainty about future EBITDA from high capex growth projects yet to come online, and due to its heavy debt load).

Weakness in the pipeline sector has caused soul-searching and changes to corporate structure. The debate among investors, management and Wall Street about how to unlock value received some useful ideas recently from Wells Fargo.

In many parts of the country (apart from Texas and Louisiana) and Canada, energy infrastructure is becoming steadily harder to build. If new pipelines are harder to build, existing pipelines must be correspondingly more valuable.

MLPs are still cutting payouts. Energy Transfer has excelled at imposing such “stealth distribution cuts”.