UPDATE - Barclays Reinstates Coverage on Energy Transfer Equity (ETE) with an Overweight

UPDATE - Barclays reinstates coverage on Energy Transfer Equity, L.P. (NYSE: ETE) with an Overweight. PT $46.00.

Analyst, Richard Gross, says, "With the SUG acquisition completed, ETE will have ~$10 billion of SUG assets to drop down to ETP/RGP over time, which we estimate can lead to 5-year distribution CAGR of 13.5%. While this puts ETE's growth above the large cap MLP peer average, ETE's 6.3% yield represents a 125 bps discount, due to lack of clarity on drop down timing, project funding and tax uncertainties. While these issues could continue to pressure ETE's valuation near term, we believe ownership of ETE units provide an attractive risk/reward proposition in the long term."

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