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Energy Transfer Partners, L.P. Message Board

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  • frank100_20012002 frank100_20012002 May 6, 2010 12:06 PM Flag

    Morningstar

    What analyst Jason Stevens wrote:
    "Energy Transfer Partners ETP reported somewhat better results than we had expected for the first quarter. We had been concerned that the intrastate segment would be hurt by lower gas volumes and margins because of continued flat basis differentials between gas market hubs in Texas. Although volumes were down this quarter compared with last year, Energy Transfer managed to increase gas sales margins to mitigate some of the impact. Also, transportation volumes increased about 5% from the fourth quarter of 2009. Interstate transportation delivered a 12% increase over last year, and the midstream segment benefited from strong processing margins and natural gas liquids prices, more than doubling operating income from last year. Propane results were slightly down from l ast year. Overall, Energy Transfer generated $344 million in operating income, $427 million in EBITDA, and $378 million in distributable cash flow. We're pleased with this level of distributable cash flow, as by our calculations it is enough to cover distributions 1.4 times, suggesting that Energy Transfer will be positioned to contemplate a distribution increase later this year."

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    • ETP reported that 'Distributable cash flow for the three months ended March 31, 2010 totaled $376.8 million, a decrease of $64.8 million from the three months ended March 31, 2009'

      ETP had 2009 DCF of $3.55/uni compared to a distribution of $3.575. Q1-10 DCF [in absolute terms] is falling, and with more units out there [could not find number of units outstanding in the earnings release], DCF per unit is falling even more.

      Yet the analyst from Morningstar is "pleased with this level of distributable cash flow, as by our calculations it is enough to cover distributions 1.4 times, suggesting that Energy Transfer will be positioned to contemplate a distribution increase later this year."

      One of us is getting a failing grade on their reading and comprehension of this release - and while I hope it is me [given that I am an ETP unit holder], I think the above is going to be another example of how Morningstar and the other part time MLP analysts do not understand the sector.

 
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