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Energy Transfer Equity Up 27% from Year-to-Date Low

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Energy Transfer Equity’s recent performance

Energy Transfer Equity (ETE), the MLP GP (general partner) of Energy Transfer Partners (ETP), had a positive start this month. It was supported by an overall strong momentum in the midstream energy sector, a result of strong US drilling activity and a slight recovery in crude oil prices.

ETE has risen ~1% since the start of June, which is in line with the Alerian MLP ETF (AMLP), which has also risen ~1% month-to-date. Overall, ETE has risen ~27% from its YTD (year-to-date) low.
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Stock in the news

Pennsylvania’s Public Utility Commission (or PUC) has allowed Energy Transfer Partners’ Mariner East 1 pipeline to resume service. That’s positive for both ETP and ETE. However, PUC has maintained a status quo on its earlier decision to stop construction of the Mariner East 2 and 2x pipeline projects.

ETP revised its target in-service date for the Mariner East 2 project to the third quarter of 2018 compared to its previous expectation of the second quarter. We’ll have to wait and see whether the delays will require further revisions.

Previously, Energy Transfer Partners received FERC (Federal Energy Regulatory Commission) approval for phase B of its Rover Pipeline project and announced open season for additional commitments on the Permian Express 3 project.

Energy Transfer Equity’s YTD performance

ETE entered into positive territory for 2018 following the recent rally, and it continues to outperform the Alerian MLP ETF (AMLP). ETE has risen 1.1% since the start of the year, while AMLP has fallen 3.1%. ETE’s peer Williams Companies (WMB) has fallen 10.8%. Plains GP Holdings (PAGP) has risen 17.2% so far in 2018.

Series overview

In this series, we’ll try to find out if ETE can continue to rise going forward. We’ll look at its technical indicators and price forecast. Then we’ll look at its distribution yield and analysts’ recommendations.

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