as to the FERC overhang:
this little snippet from a Morgan Stanley research report dated Feb. 25, 08 (a 28 page industry report)....
"...The Federal Energy Regulatory Commission (FERC)
enforcement staff is seeking an additional $25 million in civil
penalties and added $7.2 million to the total amount it believes
Energy Transfer Partners gained from alleged market
manipulation of the natural gas market in 2005. FERC’s
enforcement staff also agreed that issues of material fact need
to be addressed by an administrative law judge prior to taking
final action and imposing penalties against Energy Transfer..."
I calculate the current dist. rate at 7.08% using the $3.375 annualized rate as stated in the Jan. 22 press release and a $47.67 unit price. That's an above peer yield for an above peer grower. My guess as to ETP's underperformance vs MLP peers is the FERC/lawsuit issue overhang.
More broadly, spread products are not in favor now given the turmoil in debt markets and weakening economy. MLPs are also exposed to potential tax law changes which would be more likely with Democratic adimin. and Congress.
"chart what do u make of the recent weakness?"
Using unit price only, that should only increase with the distribution increase so yield is constant. (in a perfect world)
Using a 3 year chart of unit price, from 2-27-05 to 7-2-07 approx. ETP went up about +96%. A bit extremt but the AMZ index was up about +35% which was only a bit too fast. Correction is under way in both. That is about 2.5 years of the 3, then correction set in.
However, ETP is still +50% in 3 years in unit price so there is no problem. IMHO.
For the last 4 years the distribution growth trendline is about +23% per year and that cannot be sustained for long.
At forward yield of 7.5% I think this is a keeper.
"The dividend is 3.375."
Let us call it distribultions.
Top 4 are regular distributions and then projected if they continue at the same pace. Now the total is $3.578.
At today's close that is 7.54% yield if you bought at the close.
Wonder how that compares to treasury bonds?
And of course it they increase at the same rate as last year, +9.76% annualized rate of growth, then you expect your unit price to gain the same. So, 7.5% + 9.8% is?
Oh well, just for those of us who like cash cows. Or you could have GOOG. down -31% year to date.
ps they are units not shares, and distributions not dividends. They are not the same thing, so let us not call an apple an orange, just because they are fruits.