Energy Transfer Partners: Additions from Institutional Investors



Recent institutional activity in ETP

Energy Transfer Partners (ETP), the diversified MLP involved in almost all midstream activities, saw massive buying from institutional investors during 2Q17. That followed the successful completion of Legacy Energy Transfer Partners and Sunoco Logistics Partners (SXL).

Harvest Fund Advisors and Kayne Anderson Capital Advisors were the top two buyers in the partnership during the quarter. They bought 38.9 million and 31.0 million shares, respectively.

Article continues below advertisement

Among the top institutional holders, 192.4 million positions were added. That indicates a bullish sentiment in ETP. Magnetar Capital Partners and Cushing Asset Management were the biggest sellers with 3.4 million and 2.3 million shares sold, respectively. For details on recent institutional activity in Energy Transfer Equity (ETE), read BofA Merrill Lynch Added Position in ETE during Q2.

Why are institutional investors bullish on ETP?

Institutional investors’ bullishness toward ETP could be attributed to the following factors:

  • expected synergies from the ETP-SXL merger
  • improved balance sheet position following recent measures, including asset sales and JVs (joint ventures)
  • strong presence in the Permian region, which continues to experience strong drilling activity despite the volatility in commodity prices
  • attractive valuations

Top five holders

Harvest Fund Advisors, OFI SteelPath, Alps Advisors, Tortoise Capital Advisors, and Kayne Anderson Capital Advisors are the top five institutional holders in ETP. Harvest Fund Advisors is the largest holder in the partnership. It currently holds 4.9% in ETP.

For details on the MLP’s current valuation and recent analyst recommendations, read Energy Transfer Partners Could Gain More Upward Momentum.


More From Market Realist