Energy Transfer Partners (ETP) and Enterprise Products Partners (EPD) are trading at forward EV-to-EBITDA multiples below their respective five-year historical averages, which indicates that ETP and EPD may be undervalued relative to their historical valuation.
As the graph shows, ETP’s multiple is also the lowest among the four MLPs. EPD’s EV-to-EBITDA, on the other hand, is the highest among the selected companies. Notably, EPD has historically traded at a slight premium valuation compared to peers based on its superior risk-return metrics.
Energy Transfer Partners is currently trading at a distribution yield of ~11.5%. In comparison, Plains All American Pipeline, Enterprise Products Partners, and Williams Partners are currently trading at yields of 9.4%, 6.2%, and 7.8%, respectively.
Learn more about MLPs that offer attractive yields in ETP, EEP, PAA, GEL Currently Yield above 9%: What Are the Risks?
Let’s take a look at moving averages and the recent performance of frac-sand producing MLP Hi-Crush Partners (HCLP) in the next part of the series.