Barclays Maintains an 'Equalweight' on Energy Transfer Partners (ETP); Better Than expected Q3 Reflects Resilient Asset Base

Barclays maintains an 'Equalweight' on Energy Transfer Partners (NYSE: ETP) price target of $49.00.

Barclays analyst says, "Q3 better than expected driven by Interstate and Midstream: ETP reported Q3 EBITDA of $404 mm and DCF of $266 mm, which were better than expected, leading to YTD coverage of 95%. EBITDA jumped 44% YoY, driven by a 117% increase in Interstate, 40% in Midstream, and 16% in Intrastate, as well as $30 mm of EBITDA contributions from Lone Star JV which had partial contributions in Q2. While Intrastate segment and Transwestern volumes remain weak, we expect to see ETP's cash flow grow in the coming quarters given continued ramp up in demand charges on Tiger and FEP as well as contributions from new projects coming on line in Eagle Ford. On the other hand, given light coverage and short-term dilutive effects of the propane sale, we continue to expect ETP's distribution increase will be modest in 2012. We estimate ETP will grow distribution at 3% in 2012 and at a 3-5% range in 2013-15."

Barclays raises FY11 EPS estimate from $1.97 to $2.06 and FY12 from $2.08 to $2.36.

For an analyst ratings summary and ratings history on Energy Transfer Partners click here. For more ratings news on Energy Transfer Partners click here.

Shares of Energy Transfer Partners closed at $43.45 yesterday.

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