|Bid||20.00 x 900|
|Ask||24.07 x 4000|
|Day's Range||22.19 - 22.52|
|52 Week Range||15.06 - 24.38|
|PE Ratio (TTM)||20.56|
|Forward Dividend & Yield||2.26 (9.62%)|
|1y Target Est||N/A|
Energy Transfer Partners (ETP) is expected to spend ~$5 billion on capital projects this year. Energy Transfer’s key upcoming projects include Mariner East 2 pipeline, Lone Star Fractionators V and VI, and Mariner East 2X. Energy Transfer Partners has spent ~$3 billion on capital projects in the first half of 2018. In 2017, ETP spent $5.91 billion on capital projects.
After sailing through rough seas for the past few years, Energy Transfer Equity (ETE) seems to have attractive prospects going forward. Its pending consolidation with Energy Transfer Partners (ETP), robust growth in Q2 2018 earnings, and upcoming projects paint a nice picture for the near future.
Magellan Midstream Partners (MMP), one of the largest US transporters of refined products, posted a 4.5% YoY rise in EBITDA in the second quarter. MMP saw an 8.3% rise in EBITDA in the first six months of 2018 compared to the same period last year, implying a slowdown in earnings growth in the remaining two quarters of the year. Magellan Midstream Partners’ second-quarter earnings growth was driven by the strong performance of its Crude Oil segment resulting from higher Permian volumes and expansion projects placed into service.
MLPs’ strong earnings growth continued in the second quarter after a solid first quarter. Of the top 15 limited partnerships by market cap, 13 reported YoY (year-over-year) rises in their quarterly revenues and earnings. Cheniere Energy Partners (CQP) reported the highest YoY EBITDA growth among the MLPs under review. Fourteen of the top 15 MLPs are constituents of the Alerian MLP ETF (AMLP).
83.0% of analysts rate Energy Transfer Equity (ETE) a “buy” as of August 9, and the remaining 17.0% rate it a “hold.” Peers Williams Companies (WMB) and Kinder Morgan (KMI) have “buy” ratings from 77.8% and 71.4% of analysts, respectively. Stephens recently upgraded the GP (general partner) to “overweight,” which is equivalent to a “buy” from “equal weight,” which is equivalent to “hold.”
The partnership expects to complete the restoration activities this month, resulting in full placement of the project. On the Mariner East 2 and 2x, the partnership doesn’t expect further delays due to the blockages from the Pennsylvania DEP (Department of Environmental Protection). The partnership expects to use the existing pipeline in the affected areas and bring the ME2 project online by the end of the third quarter.
(Repeats with no changes) By Andres Guerra Luz and Scott DiSavino Aug 10 (Reuters) - U.S. natural gas exports to Mexico hit all-time highs this month, but a slower-than-expected build out of pipelines inside Mexico has kept increases far below available capacity at the border. The latest uptick in exports, driven by demand from Mexico's power sector, occurred after several Mexican pipelines began operation, allowing U.S. companies to send more fuel across the border, RBN Energy said in a report. (For a graphic on U.S. natural gas exports to Mexico, see: https://tmsnrt.rs/2OoMqnv) Over the last decade, U.S. gas exports to Mexico via pipeline have more than tripled, to 4.9 billion cubic feet per day (bcfd) in August, according to Thomson Reuters data.
Energy Transfer Partners’ (ETP) total outstanding debt continued to grow during the second quarter of 2018 despite some recent debt reduction measures including asset sales. At the same time, Energy Transfer Equity (ETE) reported total outstanding debt of $44.6 billion at the consolidated level. Energy Transfer Partners’ leverage position has improved over the recent quarter despite an increase in total debt.
Energy Transfer Partners (ETP) posted strong earnings growth in the second quarter of 2018 and beat earnings estimates. The better-than-expected earnings were driven by strong performances across all its business segments, particularly the Crude Oil Transportation and Services segment. Except for the Other segment, the remaining five segments posted YoY EBITDA growth during the second quarter of 2018. ...
Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) announced their second-quarter earnings on August 8 after the market closed. Energy Transfer Partners beat analysts’ estimates by a huge margin. The company posted an EBITDA of 28.2% YoY during the second quarter. Energy Transfer Partners posted an adjusted EBITDA of $2.051 billion in the second quarter, while the market called for $1.911 billion—a 7.3% beat. The partnership beat analysts’ estimate for the fifth consecutive quarter.
Energy Transfer Partners (ETP) was the top MLP gainer last week. The partnership saw a massive 18.0% rally following its merger announcement with Energy Transfer Equity (ETE). Overall, Energy Transfer Partners has risen 34.5% YTD. A positive earnings surprise might continue to drive the strong momentum in Energy Transfer Equity and Energy Transfer Partners this week. Energy Transfer Partners is scheduled to report its second-quarter results this week. For a pre-earnings review, read What to Expect from ETP and ETE’s Q2 2018 Earnings.
The WTI Cushing-WTI Midland spread, a key indicator to watch for Permian producers and pipeline MLPs operating in the region, moved closer to four-year highs of $18 per barrel last week. The spread rose to $17.3 per barrel by the end of last week—significantly higher than this year’s average of $3.5 per barrel.
MLPs’ strong positive momentum continued. The Alerian MLP Index (^AMZ), which includes 44 energy MLPs, ended in the green for five consecutive weeks. AMZ rose 4.0% last week and ended at 285.5—the highest weekly gains in the last seven months. Out of the total 93 MLPs, 55 ended in the green, seven remained unchanged, and 31 ended in the red last week.
Energy Transfer Partners (ETP) is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.
The Alerian MLP ETF (NYSEArca: AMLP) , the largest MLP-related exchange traded fund, and rival MLP ETFs saw increased activity to start amid deal-making in the sector. On Aug. 1, Energy Transfer Equity LP (ETE) said it is buying Energy Transfer Partners LP (ETP) for $27.5 billion. Units of Energy Transfer Partners, the firm being acquired, jumped more than 14% last week.
For Energy Transfer Equity (ETE), 83.3% of the analysts surveyed by Reuters rate the stock as a “buy” as of August 1, while 16.7% rate it as a “hold.” Bank of America upgraded the stock to “buy” from “hold.” Williams Companies (WMB) and Kinder Morgan (KMI) have “buy” ratings from 77.8% and 71.4% of the analysts, respectively. Energy Transfer Equity’s average target price of $20.2 implies ~9% upside potential from the current price levels.
Kinder Morgan (KMI) stock fell 1.6% in the week ending August 3. In comparison, ONEOK (OKE) fell 3.7% and Enterprise Products Partners (EPD) fell 0.5% during the week. The Energy Select Sector SPDR ETF (XLE) fell 1.8% for the week. Crude oil prices fell 0.3%. Read Fed and Trade Wars: What Else Could Impact Crude Oil Prices? to learn more.
Recently, Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) announced their merger. The most important thing to watch in their second-quarter earnings would be the distribution outlook following the simplification transaction. Energy Transfer Partners and Energy Transfer Equity announced their distribution for the second quarter.
In this part, we’ll discuss the drilling activity in major basins where Energy Transfer Partners (ETP) has high exposure. Let’s start with the Permian Basin.
Enterprise Products Partners (EPD) reported its second-quarter results on August 1. Excluding the impact of non-cash mark-to-market losses on financial instruments, all four of the company’s segments reported higher earnings for the quarter. The earnings growth was driven by higher volumes across the segments.
The proposed $27 billion combination of Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP) should benefit investors in both companies by simplifying a complex structure and making sure they have enough cash to pay distributions.
The Crude Oil Transportation and Services segment was Energy Transfer Partners’ (ETP) top performing segment in the first quarter. The segment posted 148.1% YoY EBITDA growth in the first quarter.