Is Energy Transfer Partners Really a Buy?

Woe is ETP

Energy Transfer Partners has not shared in the seemingly SECTOR-WIDE gains for MLPs in 2014.

It is essentially flat, YTD.

Performance – Ouch!

Performance – Peer Comparison

Metric Check-Up

Why is ETP underperforming? Is something terribly wrong under the hood?

Let’s look at five metrics, comparing ETP to its peers AND the other Energy Transfer entities to find out.

Yield

SXL

RGP

KMP

EPDETP

6.59%

6.81%

3.72%

6.14%

6.03%

Price/DCF

SXL

RGP

KMP

EPDETP

8.7x

18.5x

15.4x 15.3x

23.3x

Debt-to-Adjusted EBITDA

SXL

RGP

KMP

EPDETP

3.9x

3.6x

3.8x 3.6x

8.0x

QOQ Distribution Growth

SXL

RGP

KMP

EPDETP

1.63%

1.05%

4.9%1.47%

1.41%

MRQ Distribution coverage

SXL

RGP

KMP

EPD

1.36x

1.02x

1.49x1.12x

1.67x

Key takeaways• On a P/DCF basis ETP is far cheaper than its peers, and

the industry as a whole• The market doesn’t trust ETP, despite adequate

performance on several key metrics• Investors dead set on picking up ETP units should

thoroughly investigate its growth outlook before buying

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