UPDATE - Barclays initiates coverage on Energy Transfer Equity, L.P. (NYSE: ETE) with an Overweight. PT $51. Barclays analyst says, "We estimate 5-year distribution CAGR of 12.1%: This leads to total return prospects of 17.1% vs comp group average of 15.6%. Energy Transfer Equity LP (ETE) is a levered play on Energy Transfer Partners LP (NYSE: ETP) and Regency Energy Partners (Nasdaq: RGNC) distribution growth and capital raise. We estimate a five-year distribution CAGR of 12.1%, assuming 4% growth at ETP and 4.2% growth at RGNC and on average $550 mm per year of equity issuance at ETP and $250 mm of equity issuance at RGNC." "Upside to our estimate: Our estimates are based on five-year average equity issuance of $800 mm per year, compared to $1.57 billion raised in 2010 ($1.15B at ETP/$420 mm at RGNC). Given ETP has average incentive distribution right (IDR) split of 37% vs RGNC's 3.7%, equity issuance at ETP will have 10x greater impact to ETE DCF compared to RGNC equity issuance. We estimate $100 mm of incremental ETP equity issuance will increase ETE DCF by $0.02/unit."