Can ETE Gain Momentum after a Weak Start to 2H17?



Energy Transfer Equity’s recent performance

Energy Transfer Equity (ETE) had a sluggish start to the month. It has risen 0.2% since the beginning of July. During the same time, the Alerian MLP ETF (AMLP), which consists of 25 energy MLPs, rose 1.0%. Energy Transfer Partners (ETP), ETE’s MLP subsidiary, has risen 1.0%.

ETE recently saw its YTD (year-to-date) low of $15.15 after crude oil prices fell below $43 per barrel. However, it has recovered significantly from its YTD lows driven by the slight recovery in crude oil prices. Crude oil prices have been pressured by the continuous growth in crude oil supplies. For a recent outlook on crude oil prices, read US and OECD Crude Oil Inventories Are Important for Oil Bulls.

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Energy Transfer Equity’s YTD performance

ETE has lost 6.8% since the beginning of this year. In comparison, MLP peers EnLink Midstream (ENLC) and Plains GP Holdings (PAGP) have lost 5.8% and 22.6%, respectively. ETE’s C corporation peer Enbridge (ENB) lost 3.0%, while Williams Companies (WMB) rose 0.03% in 2017. AMLP has lost 4.1% in 2017. 

ETE has underperformed AMLP by 267 basis points. ETE’s YTD (year-to-date) stock performance has been impacted by high crude oil volatility, project blockades, and a decline in cash flow due to IDR (incentive distribution rights) subsidies to its subsidiaries.

Series overview

In this series, we’ll find out whether ETE can gain upward momentum from here. We’ll look into ETE’s price forecast and technical indicators including moving averages and short interest. Following this, we’ll look into ETE’s analyst recommendations.


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