ETE Is Up ~5% in December: Can Its Momentum Continue in 2018?



Energy Transfer Equity’s recent performance

Energy Transfer Equity (ETE) has risen ~5.0% since the start of this month. ETE’s recent gains are mainly due to the positive sentiment in the US midstream energy sector driven by strong gains in crude oil prices and the corresponding recovery in drilling activity.

US crude oil has risen 1.9% in the month of December and 8.8% since the beginning of this year. Crude oil prices are expected to stay strong in 2018 as well. For a recent update on crude oil prices, read Oil on a Bullish Note: Should Traders Be Careful?

Energy Transfer Equity’s YTD performance

ETE hasn’t been in positive territory since April 2017. Overall, it has lost 11.8% in 2017 to date. In comparison, ETE peers Plains GP Holdings (PAGP) and NuStar GP Holdings (NSH) have lost 36.0% and 46.9%, respectively. ETE’s c-corp peer, Williams Companies (WMB), has lost 2.1% in 2017. The Alerian MLP ETF (AMLP), which consists of 25 energy MLPs, has lost 13.8% in 2017. ETE is still outperforming AMLP by ~200 basis points. For a comparative analysis of four GPs (general partners) of MLPs, including ETE, read ETE, PAGP, WGP, WMB: Which Could Outperform Peers in 2018?

Series overview

In this series, we’ll look at whether ETE can gain upward momentum from here. We’ll look into the partnership’s technical indicators, price forecast, valuation, and analyst ratings.

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