Publicly traded energy pipeline operator,
Energy Transfer Partners LP
) plans to start an open season, on Mar 12, to gauge shipper
interest for a crude oil pipeline.
The pipeline would link several locations in North Dakota and
multiple refineries and terminals in the Midwest and Gulf Coast.
Among these is a terminal in Nederland, Texas belonging to
Sunoco Logistics Partners L.P.
Energy Transfer Partners is a master limited partnership (MLP)
engaged primarily in the gathering, processing, storage and
transportation of natural gas. Additionally, the partnership
holds a 70% stake in Lone Star NGL LLC, a joint venture that owns
and operates natural gas liquids (NGL) storage, fractionation and
transportation assets in Texas, Louisiana and Mississippi. Energy
Transfer Partners is a premier MLP with strategically positioned
assets that are situated to benefit from growing production from
unconventional sources of natural gas.
The Dallas-based partnership reported earnings per unit of 61
cents in the fourth quarter, beating the Zacks Consensus Estimate
by 2 cents. Quarterly revenues also increased 9.6% year over year
to $12,032.0 million and surpassed the Zacks Consensus Estimate
of $11,468.0 million. Higher revenues from the NGL Transportation
and Services segment and from investments in Sunoco Logistics
Partners led to the improvement.
We also positively view the increase in fourth quarter cash
distribution provided by the partnership. Energy Transfer
Partners increased distribution to 92 cents per unit, up 1.66%
sequentially and 2.94% year over year.
However, gathering and processing MLPs such as Energy Transfer
Partners are more sensitive to commodity prices compared to other
MLP subgroups. As a result, collapsing energy prices may
adversely affect their cash flow stability.
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 months.
Meanwhile, one can consider better-ranked players from the
industry such as
Magellan Midstream Partners LP
NuStar Energy L.P.
). Both these stocks currently holds a Zacks Rank #2 (Buy).
ENERGY TRAN PTR (ETP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
NUSTAR ENERGY (NS): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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