Energy Transfer's units have climbed over 13% this year and are now trading near $19, but here's what caught my attention: this MLP is still valued like a bargain bin stock despite showing real momentum. I've been watching the numbers, and there's actually a compelling case for where this could go.

Last year was sluggish for ET—adjusted EBITDA growth hit just 3.2%, well below the 10% annual pace it delivered from 2020 through 2024. But that was the anomaly, not the trend. This year is shaping up differently. The company is guiding for adjusted earnings growth above 10% at the midpoint, driven by major expansion projects ramping up and completing, plus acquisitions from its affiliated MLPs. Oil prices climbing doesn't hurt either.

What really interests me is the project backlog. We're talking about the Hugh Brinson Pipeline at $2.7 billion and the Transwestern Pipeline expansion at $5.6 billion, with secured projects running through 2030. Add in the emerging opportunity to expand gas infrastructure for data centers and power producers—that's real fuel for sustained growth. Energy Transfer has the financial flexibility to fund these projects and continue hunting for acquisitions when the right deals surface.

Here's the math that matters: if ET maintains a 10% annual earnings growth rate, the unit price would theoretically hit $30 within about five years at current valuation multiples. But here's the kicker—it could get there faster. The company trades at less than nine times forward earnings, while peers average above 11x. That's the lowest valuation in the group, which means there's room for multiple expansion if the market starts taking the growth story seriously.

So could this hit $30? If the growth acceleration sticks and valuation starts catching up to peers, it's not just possible—it's plausible within the next few years. That said, energy infrastructure plays aren't one-size-fits-all, so do your own homework before making moves.