UPDATE - Barclays Initiates Coverage on Energy Transfer Equity (ETE) with an Overweight
Tweet
Share
E-mailGet Alerts ETE Hot Sheet
Price: $16.82 --0%
Rating Summary:
18 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
UPDATE - Barclays initiates coverage on Energy Transfer Equity, L.P. (NYSE: ETE) with an Overweight. PT $51.
Barclays analyst says, "We estimate 5-year distribution CAGR of 12.1%: This leads to total return prospects of 17.1% vs comp group average of 15.6%. Energy Transfer Equity LP (ETE) is a levered play on Energy Transfer Partners LP (NYSE: ETP) and Regency Energy Partners (Nasdaq: RGNC) distribution growth and capital raise. We estimate a five-year distribution CAGR of 12.1%, assuming 4% growth at ETP and 4.2% growth at RGNC and on average $550 mm per year of equity issuance at ETP and $250 mm of equity issuance at RGNC."
"Upside to our estimate: Our estimates are based on five-year average equity issuance of $800 mm per year, compared to $1.57 billion raised in 2010 ($1.15B at ETP/$420 mm at RGNC). Given ETP has average incentive distribution right (IDR) split of 37% vs RGNC's 3.7%, equity issuance at ETP will have 10x greater impact to ETE DCF compared to RGNC equity issuance. We estimate $100 mm of incremental ETP equity issuance will increase ETE DCF by $0.02/unit."
To see all upgrades/downgrades on shares of ETE, visit our Analyst Ratings page.
Barclays analyst says, "We estimate 5-year distribution CAGR of 12.1%: This leads to total return prospects of 17.1% vs comp group average of 15.6%. Energy Transfer Equity LP (ETE) is a levered play on Energy Transfer Partners LP (NYSE: ETP) and Regency Energy Partners (Nasdaq: RGNC) distribution growth and capital raise. We estimate a five-year distribution CAGR of 12.1%, assuming 4% growth at ETP and 4.2% growth at RGNC and on average $550 mm per year of equity issuance at ETP and $250 mm of equity issuance at RGNC."
"Upside to our estimate: Our estimates are based on five-year average equity issuance of $800 mm per year, compared to $1.57 billion raised in 2010 ($1.15B at ETP/$420 mm at RGNC). Given ETP has average incentive distribution right (IDR) split of 37% vs RGNC's 3.7%, equity issuance at ETP will have 10x greater impact to ETE DCF compared to RGNC equity issuance. We estimate $100 mm of incremental ETP equity issuance will increase ETE DCF by $0.02/unit."
To see all upgrades/downgrades on shares of ETE, visit our Analyst Ratings page.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- DA Davidson Starts Everus (ECG) at Buy
- DA Davidson Starts Comfort Systems USA (FIX) at Buy
- TD Cowen Assumes Agios Pharma (AGIO) at Buy
Create E-mail Alert Related Categories
New CoverageRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
