ETP
Energy Transfer Partners LP
Energy
01/19/2016
Presented
| Date | 01/14/2016 |
| Price | $26.91 |
| Market Cap | $13.11B |
| Ent Value | $52.94B |
| P/E Ratio | 84.09x |
| Book Value | $29.92 |
| Div Yield | 0% |
| Shares O/S | 487.30M |
| Ave Daily Vol | 5,856,329 |
| Short Int | 1.05% |
Current
| Price | no data |
| Market Cap | no data |
| Energy Transfer Partners LP produces and sells propane and natural gas. It owns and operates a diversified portfolio of energy assets. It operates through the following segments: Intrastate Transportation and Storage, Interstate Transportation and storage, Midstream, Liquids Transportation and Services, Investment in Sunoco Logistics Segment, Retail Marketing Segment and All Other Segment. The Intrastate Transportation and Storage segment owns and operates natural gas transportation pipelines and three natural gas storage facilities located in the state of Texas. The Interstate Transportation segment owns and operates natural gas pipeline and its pipelines are Transwestern pipeline, Tiger pipeline, Fayetteville Express pipeline and Midcontinent Express pipeline. The Midstream segment focuses on the gathering, compression, treating, blending, processing and marketing of natural gas. The Liquids Transportation and services segment provides pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities to fractionation plants and storage facilities. The Sunoco Logistics Segment owns and operates a logistics business, consisting of a geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil and refined petroleum products. The Retail Propane segment owns one of the three largest retail propane marketers in the U.S. based on gallons sold. The company was founded in 1995 and is headquartered in Dallas, TX |
Publicly traded companies mentioned herein: Energy Transfer Equity LP (ETE), Energy Transfer Partners LP (ETP), Enterprise Products Partners LP (EPD), Sunoco LP (SUN), Williams Companies Inc (WMB), Williams Partners (WPZ)
Highlights
The massive swing in Energy Transfer Partners’ (ETP) stock price has driven the yield to the high teens (15-16%) and the EBITDA multiple to 7x 2016 estimates. At this point, he views the potential for a dividend cut as “more than priced in” and based on the cash flow profile the valuation “doesn’t make sense.” Despite the seemingly favorable risk/ reward and the presenter’s long position, he cautioned, “The whole sector is still terrible, and I’m not sure what breaks the vicious cycle.” But, the successful completion of the wholesale fuel and retail asset dropdowns from ETP to Sunoco in November (2015) was a good sign, in his opinion.
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