Energy Transfer Equity, L.P.
) announced that its board of directors has approved of a 2 cent
increase on a pre-split basis (1 cent per common unit on a
post-split basis) in its quarterly cash distribution rate. The
new post split distribution rate of 34.625 cents per unit will be
effective from the fourth quarter of 2013 and is scheduled to be
paid on Feb 19, 2014, to unitholders of record as of Feb 7, 2014.
ENBRIDGE ENERGY (EEQ): Free Stock Analysis
ENERGY TRAN EQT (ETE): Free Stock Analysis
ONEOK PARTNERS (OKS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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The current 3.9% increase in the quarterly distribution rate
marked the fifth consecutive increase in the partnership's
quarterly cash distribution.
The annualized cash distribution rate of the partnership comes to
$1.385 per unit, taking into consideration the two-for-one split
of its outstanding common units. Post split the total outstanding
common units will approximate 560 million units.
Recently, the partnership has taken a number of initiatives for
creating value for its unitholders. The board of directors of
Energy Transfer Equity not only authorized a stock split but also
approved a $1 billion buyback program for its common units,
We believe that the increase in natural gas and natural gas
liquids usage in the U.S. will create more demand for pipeline
and allied services. Energy Transfer Equity with its pipeline,
natural gas processing plants and natural gas storage facilities
stands to benefit from these favorable market dynamics.
Apart from Energy Transfer Equity, a few other pipeline operators
have also increased their quarterly distribution rates.
Plains All American Pipeline LP
) increased its quarterly cash distribution to 61.50 cents per
unit, reflecting an annual hike of 9.3%.
ONEOK Partners L.P.
) increased its quarterly cash distribution to 73 cents per unit,
reflecting an annual hike of 0.7%.
Energy Transfer Equity currently has a Zacks Rank #3 (Hold). A
well-placed pipeline operator is
Enbridge Energy Management LLC
), with a Zacks Rank #2 (Buy).