Can Energy Transfer Equity Rebound from Its Weak Start to 2017?



Energy Transfer Equity’s YTD returns         

Energy Transfer Equity (ETE), which directly and indirectly owns the GP (general partner) of Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL), respectively, had a weak start to 2017. ETE stock has fallen 0.2% since the beginning of 2017. It had gained 40.5% during 2016.

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ETE’s stock performance drivers

Energy Transfer Equity’s underperformance relative to AMLP can be mainly attributed to the sharp decline in its stock price following the negative news related to the DAPL project and PIPE financing. These events are expected to result in slight dilution. ETE recovered slightly after the US government’s decision to move forward with the project and the U.S. Army Corps of Engineers providing the easement to drill under Lake Oahe.

DAPL, which is part of a $4.8 billion Bakken Pipeline project, is an important project for Energy Transfer Equity and its subsidiaries to grow their distributable cash flows and resume distribution growth.

Series overview

In this series, we’ll discover whether ETE can gain upward momentum from here. We’ll look into ETE’s price outlook using technical indicators such as moving averages and the relative strength index. Following this, we’ll look into ETE’s valuation, institutional activity, and analyst projections.


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