Stock price reaction
Shares of Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) rose 1.9% and 1.8%, respectively, on August 1 after the asset sale announcement. At the same time, the Alerian MLP ETF (AMLP) closed flat.
YTD market performance
Overall, Energy Transfer Partners and Energy Transfer Equity have lost 12.2% and 6.8% since the beginning of 2017. They’re underperforming AMLP by 736 basis points and 208 basis points, respectively. Energy Transfer Partners’ peers, Enterprise Product Partners (EPD), Williams Partners (WPZ), and MPLX LP (MPLX) have risen 0.6%, 6.9%, and 5.3% in 2017.
Energy Transfer Partners and Energy Transfer Equity were weak during 2Q17 due to commodity price volatility and negative project updates. Energy Transfer Partners has relatively higher crude oil exposure through its natural gas midstream and commodities acquisition and marketing business.
It’s important to note that 86.4% of the analysts’ surveyed by Reuters rate Energy Transfer Partners as a “buy” and the remaining 13.6% rate it as a “hold” as of August 1. At the same time, 74.0% of the analysts rate Energy Transfer Equity as a “buy,” while the remaining 26.0% rate it as a “hold.” The average target price of $28.5 and $21.1 for Energy Transfer Partners and Energy Transfer Equity implies a 34.9% and 24.1% return from their current market price.