Energy Transfer's (NYSE: ET) priorities have shifted over the years. An elevated leverage ratio led the master limited partnership (MLP) to slash its distribution to retain more cash for debt reduction in 2020. However, as leverage improved, the company's priority shifted back to rebuilding its payout.

Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite being on an extremely sound financial foundation. That has the MLP planning to put a greater priority on repurchasing its undervalued units in the future. This move could help push its unit value higher, fueling stronger total returns for investors.

Energy Transfer generates very stable earnings because about 90% of its revenue comes from predictable fee-based sources. That also gives the company lots of visibility. It currently expects its adjusted EBITDA to be between $13.1 billion and $13.4 billion for 2023.

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Source Fool.com