Energy Transfer Partners’ market performance
Energy Transfer Partners (ETP), one of the largest and diversified midstream MLPs (master limited partnerships) in the US, has gained 20.6% YTD (year-to-date), as compared to the Alerian MLP ETF (AMLP), which is made up of 26 midstream energy MLPs and has only gained 5.6%.
Notably, after touching multiyear lows in the beginning of 2016, ETP has gained 105%. But the partnership is still trading 29.1% lower than its levels before the rout in energy prices.
By comparison, peers Williams Partners (WPZ) and Boardwalk Pipeline Partners (BWP) have gained 41.8% and 28.3%, respectively, YTD. ETP’s general partner, Energy Transfer Equity (ETE), which is dependent upon distribution income from subsidiaries including ETP, has returned 34.6% during the same time frame.
Moving averages and 2Q16 earnings
ETP is now trading 2.0% above its 50-day moving average and 19.4% above its 200-day moving average. Notably, the partnership’s 50-day moving average surpassed the 200-day moving average in June 2016, indicating a bullish trend in ETP’s stock.
Energy Transfer Partners’ 2Q16 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) decreased to ~$1.4 billion from ~$1.5 billion in 2Q15, which is a YoY (year-over-year) decline of 7.9%.
In this series, we’ll do a comprehensive analysis of ETP’s balance position, cash flow, and operating results. We’ll also explore the partnership’s valuations, commodity price exposure, key performance indicators, and analyst projections.
Let’s start by looking at ETP’s recent segment-wise operating performance.