Energy Transfer Equity’s weekly performance
Energy Transfer Equity’s (ETE) shares rose 6.1% on June 23, 2017, after the US Federal Court allowed Energy Transfer Partners’ (ETP) Dakota Access Pipeline to operate during legal proceedings. Energy Transfer Equity’s gain on Friday could also be attributed to the slight recovery in crude oil prices. Energy Transfer Partners rose 2.9% on Friday.
Energy Transfer Equity’s earnings growth depends on distributable cash flow growth at its subsidiaries including Energy Transfer Partners and Sunoco LP (SUN). Energy Transfer Partners’ distributable cash flow growth depends on the successful completion and operation of its organic projects including the Bakken Pipeline and Rover Pipeline. Both of the projects face hurdles due to environmental concerns. Read Did Energy Transfer Partners Just Hit a Double Whammy? to learn more.
However, Energy Transfer Equity’s gain on Friday wasn’t enough to offset the fall earlier during the week. Energy Transfer Equity ended last week with a 1.6% fall. At the same time, the Alerian MLP ETF (AMLP), which is comprised of 25 energy MLPs, fell 0.9%. Last week, Energy Transfer Equity and AMLP saw their new YTD lows of $15.15 and $11.06.
Energy Transfer Equity’s YTD performance
Energy Transfer Equity has lost 13.7% since the beginning of the year. In comparison, its MLP peers, Western Gas Equity Partners (WGP) and Plains All GP Holdings (PAGP) have lost 2.0% and 26.6%, respectively. Energy Transfer Equity’s C corporation peers, Enbridge (ENB) and Williams Companies have lost 4.6% and 5.8% in 2017. AMLP has lost 5.8% in 2017. Energy Transfer Equity has underperformed AMLP by 787 basis points.
In this series, we’ll try to find out whether Energy Transfer Equity can gain upward momentum. We’ll look at Energy Transfer Equity’s technical indicators including moving averages and implied volatility. We’ll also discuss analysts’ projections for Energy Transfer Equity.