Natural gas pipeline operator,
Energy Transfer Partners LP
) raised its second-quarter 2014 cash distribution to 95.5 cents
per unit ($3.82 per unit annualized) on Jul 24. The new
distribution represents an increase of 2.14% sequentially and 6.85%
year over year.
The distribution is payable on Aug 14, to the unitholders of
record as of Aug 4. We believe that the partnership's diversified
asset portfolio and cost effective practices led to this
Energy Transfer Partners has been consistently returning value
to its unitholders, making it attractive for investors looking for
a steady income source. Until the second quarter of 2013, the
partnership showed no growth in paid distribution, keeping it at
the 2008 level. However, things seem to be panning out well for
Energy Transfer Partners lately as this new distribution represents
the fourth consecutive hike for the partnership.
Energy Transfer Partners - which is currently trading at $59.04
per unit − is expected to report its second quarter earnings on Aug
6, after the closing bell. At present, the partnership has an
Dallas, TX-based Energy Transfer Partners is a master limited
partnership (MLP) engaged primarily in the gathering, processing,
storage and transportation of natural gas.
Over the last few years, Energy Transfer Partners has been
investing significant capital in improving its midstream, NGL
transportation and storage services. We believe that the
partnership is now well positioned to compete in the natural gas
midstream, and transportation and storage markets with its
geographically diverse asset mix.
However, the partnership's operating expenses have been rising
over the last two years, with the first quarter of this year
experiencing the maximum increase. This has been a cause of concern
As a result, Energy Transfer Partners currently carries a Zacks
Rank #3 (Hold), implying that it is expected to perform in line
with the broader U.S. equity market over the next one to three
Meanwhile, one can look at better-ranked players in the same
industry like Magellan Midstream Partners LP (
), Valero Energy Partners LP (
) and Atlas Pipeline Partner L.P (
). Magellan Midstream and Valero Energy sport a Zacks Rank #1
(Strong Buy), while Atlas Pipeline carries a Zacks Rank #2
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