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ETE Underperformed AMLP Last Week: Can It Bounce Back?

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Energy Transfer Equity’s weekly performance

Energy Transfer Equity (ETE), which directly and indirectly owns the GP (general partner) of Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL), fell 1.7% last week. At the same time, the Alerian MLP ETF (AMLP), which comprises 25 energy MLPs, was down 0.6%.

ETE had a weak start to last week. However, it recovered slightly after its MLP subsidiary, Sunoco LP (SUN), announced the sale of 1110 convenience stores to 7-Eleven for $3.3 billion. For details, read Sunoco Rallies 20% after Convenience Store Sale Announcement.

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Energy Transfer Equity’s year-to-date returns         

ETE has lost 0.2% since the beginning of 2017 while it gained 40.5% in 2016. In comparison, ETE’s peers Western Gas Equity Partners (WGP) and EQT GP Holdings (EQGP) have gained 9.5%, and 8.6%, respectively, in 2017. Its C-corp peer, Williams Companies (WMB), has lost 2.5%. Moreover, ETE and most of its peers are still trading below the levels before the rout in energy prices.

Series overview

In this series, we’ll try to find out whether ETE can gain upward momentum from here. We’ll look into ETE’s implied volatility and valuation. Next, we’ll look into ETE’s short interest and analyst projections.

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