Energy Transfer Equity Fell 4.5% Last Week, Underperformed AMLP

Energy Transfer Equity (ETE) fell 4.5% last week. ETE directly and indirectly owns the GP (general partner) of Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL), respectively. The Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs, fell 1.2% last week.

ETP and SXL fell 2.2% and 2.3%, respectively, in the same period. ETE is dependent upon its subsidiaries for distribution income through a limited partnership interest, a GP interest, and IDRs (incentive distribution rights). ETE has announced IDR subsidies in recent quarters to support its subsidiary growth plans.

ETE has fallen 4.7% since the beginning of 2017. It rose 40.5% in 2016. In comparison, ETE’s peers Western Gas Equity Partners (WGP) and EQT GP Holdings (EQGP) have risen 7.2% and 8.5%, respectively, so far in 2017. ETE’s C corporation peer Williams Companies (WMB) has fallen 3.5%. AMLP has risen 0.20%. ETE and most of its peers are still trading below the levels before the rout in energy prices.

In this series, we’ll try to find out whether Energy Transfer Equity can gain upward momentum going forward. We’ll look at ETE’s implied volatility and valuation as well as its short interest and analyst projections.