Energy Transfer Stock Rises After Natgas Supply Agreement With Data Center Developer: Retail’s Bullish

Energy Transfer (ET) stock rose 2.1% on Monday after the company signed a natural gas supply agreement with Denver-based CloudBurst Data Centers.

The Dallas-based midstream firm said that under the agreement, it would supply 450,000 million British thermal units (btu) of natural gas through its Oasis Pipeline to CloudBurst’s flagship AI-focused data center outside of San Marcos, Texas.

Energy Transfer said it is in talks with several data center developers and expects this to be the first of many such agreements.

The pipeline and storage firm said the supplied natural gas would be sufficient to generate up to about 1.2 gigawatts of direct electric power for at least 10 years.

Energy Transfer said that ClousBurst expects to reach a final investment decision on the facility later this year. In that event, the facility would be operational in the third quarter of 2026.

“We will work closely with Energy Transfer to identify additional potential data center sites, on or close to their strategic natural gas pipeline network, using our proprietary site selection software,” said Cynthia Thompson, Executive Chair of CloudBurst.

A report by the Lawrence Berkeley National Laboratory stated that data centers consumed about 4.4% of total U.S. electricity in 2023 and are expected to consume between 6.7% and 12% by 2028.

Retail sentiment on Stocktwits remained in the ‘bullish’ (56/100) territory, while retail chatter was ‘normal.’

One user hoped that the stock would hit $23 soon.

The company is scheduled to report its earnings on Tuesday after the closing bell.

Over the past year, Energy Transfer stock has gained 46%, on optimism around natural gas demand from data centers.

Also See: ConocoPhillips Stock Gets Downgrade, Price Target Cut By Raymond James: Retail’s Unimpressed

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