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After Energy Transfer Equity’s Rally, What’s Next?

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Dec. 4 2020, Updated 10:52 a.m. ET

Energy Transfer Equity’s weekly performance

Energy Transfer Equity (ETE) recovered slightly last week, after a major crash one week previously, rising 5.5% by Friday, May 12. At the same time, the Alerian MLP ETF (AMLP), which consists of 25 energy MLPs (master limited partnerships), fell 1.6%. ETE’s last week’s rally can be attributed to its rating upgrade and the slight recovery in crude oil prices.

The MLP sector has been volatile recently due to the volatility in crude oil prices. The movement in crude oil prices impacts MLPs with direct crude oil exposure, while drilling activity continues to stay strong in certain regions.

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Energy Transfer Equity’s YTD returns         

ETE has lost 2.9% since the beginning of 2017, while it gained 40.5% during 2016. By comparison, ETE peers Western Gas Equity Partners (WGP) and EQT GP Holdings (EQGP) have gained 6.2% and 5.5%, respectively, in 2017 while its C corporation peer Williams Companies (WMB) has lost 2.6%.

Notably, 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 examine whether ETE can gain upward momentum from here. We’ll look into ETE’s implied volatility and price forecast and look into ETE’s valuation, short interest, and analyst projections.

Continue to the next part (below) for a look at ETE’s moving averages and current implied volatility.

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