Is Energy Transfer Partners Really a Buy?
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Transcript of Is Energy Transfer Partners Really a Buy?
Is Energy Transfer Partners Really a Buy?
Woe is ETP
Energy Transfer Partners has not shared in the seemingly SECTOR-WIDE gains for MLPs in 2014.
It is essentially flat, YTD.
Performance – Ouch!
Performance – Peer Comparison
Metric Check-Up
Why is ETP underperforming? Is something terribly wrong under the hood?
Let’s look at five metrics, comparing ETP to its peers AND the other Energy Transfer entities to find out.
Yield
SXL
RGP
KMP
EPDETP
6.59%
6.81%
3.72%
6.14%
6.03%
Price/DCF
SXL
RGP
KMP
EPDETP
8.7x
18.5x
15.4x 15.3x
23.3x
Debt-to-Adjusted EBITDA
SXL
RGP
KMP
EPDETP
3.9x
3.6x
3.8x 3.6x
8.0x
QOQ Distribution Growth
SXL
RGP
KMP
EPDETP
1.63%
1.05%
4.9%1.47%
1.41%
MRQ Distribution coverage
SXL
RGP
KMP
EPD
1.36x
1.02x
1.49x1.12x
1.67x
Key takeaways• On a P/DCF basis ETP is far cheaper than its peers, and
the industry as a whole• The market doesn’t trust ETP, despite adequate
performance on several key metrics• Investors dead set on picking up ETP units should
thoroughly investigate its growth outlook before buying
In the meantimeIf you need better income-generating ideas, grab the free
report on the next page
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