Tag Archives: ETP

MLP valuation at August end

It’s been since May that I updated my table on MLP valuation. With the recent volatility in the market and the month of August coming to an end it is a good time to take a look at MLP valuation. Lets jump right in. As I’ve done before, I updated my top 5 MLP table which also includes the MLP index, AMZ. I like to use both relative and absolute value metrics for any investments and I think the two best are dividend yield and the spread to the 10yr treasury note. Here is the updated table. MLPs, the AMZ, … Continue reading

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Update on MLP valuation

Well, the MLP correction I discussed earlier seems to have run its course for now. I thought this would be a good time to see what this correction has done for MLP valuations relative to history. I last did this back at the end of Q1 2011 and was planning to hold off until the end of this quarter but I thought readers would be interested in a more timely update considering the recent drop in MLP prices. First, a few words on the correction. The MLP index, AMZ, hit bottom on May 17th at 351.19 representing a correction of … Continue reading

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Energy Transfer (ETP) Q1 2011 Results

Energy Transfer Partners reported Q1 2011 results last week on May 4, 2011. The press release is here. The high level summary of the results; Energy Transfer Partners, L.P. (NYSE:ETP) today reported Adjusted EBITDA, Distributable Cash Flow, and net income for the quarter ended March 31, 2011. Adjusted EBITDA for the three months ended March 31, 2011 totaled $471.3 million, a decrease of $42.4 million from the three months ended March 31, 2010. Distributable Cash Flow for the three months ended March 31, 2011 totaled $337.1 million, a decrease of $47.5 million from the three months ended March 31, 2010. … Continue reading

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Recent happenings in income land

I’m finally back from my exile in the woods. I would recommend the Gila National Forest in Southwestern New Mexico to anyone who wants a bit of peace and quiet. Now back to the business of income investing. There has been a lot going on in income investor land recently. Here are some of the items that caught my eye and what I think of them. Intel Q1 2011 earnings. Intel blew away earnings estimates in Q1. The corporate. server, and cloud computing markets are just going gangbusters, offsetting weak developed market PC demand. Although emerging market PC is doing … Continue reading

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MLP valuation at the end of Q1 2011

With the end of Q1 2011 upon us, and earnings reports to start coming soon, I thought it was a good time to re-look at MLP valuations, specifically the top 5 market cap MLPs and the Alerian MLP index. I posted on year end 2010 values in this post. Below are two tables showing the valuation of the top 5 MLPs; EPD, KMP, ETP. WPZ, and PAA. The top table shows the valuations from year end, reproduced from my earlier post, and the bottom table shows the current valuations. As the bottom table shows, MLP valuations are up across the … Continue reading

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ETP Q4’10 results – distribution growth ahead

The 3rd largest MLP by market cap, Energy Transfer Partners (ETP) reported Q4 2010 results that were as expected. The full press-release can be found here. Total distributable cash flow (DCF) for the year was $1.03B which was only about a 7.4% increase from 2009. The Q4’10 declared distribution of $0.895 was unchanged and has been at the same level since Q2 of 2008. Compared to results posted by the other two big boys in the MLP space, KMP and EPD, ETP’s were less than impressive. However, it looks like distribution growth is set to resume at ETP pretty soon. … Continue reading

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Owning individual MLPs superior to MLP ETFs

I’m a big fan of MLPs as an asset class and in particular of owning individual MLPs. I’ve posted on KMP, EPD, and on ETP previously. Not too long ago owning individual MLPs was the only way to invest in them. However, in the last couple of years there have been several new MLP ETFs announced such as AMLP and AMJ to name just two. Which leads to the question, what are the pros and cons of MLP ETFs vs individual MLP stocks? A post this week by Richard Shaw on Seeking Alpha addressed this topic specifically. Richard has a … Continue reading

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MLP valuation at year end – still room to run!

2010 was another great year for the MLP sector. The MLP index, AMZ, finished 2010 with a total return (including dividends) of 36% compared to the S&P500 total return of 15.1%. And that was after a 76% return in 2009! Those kinds of returns will sure help you lead a more comfortable retirement which, after all, is my goal here. But where does that leave us going into 2011? I have touched on MLP valuation a few times in previous posts (here here here here) and had come to the conclusion that MLPs were a bit frothy in price but … Continue reading

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ETP: the best value in large cap MLPs

Energy Transfer Partners (ETP) is another of the big cap MLPs. Along with KMP and EPD it makes up a good portion of the Alerian MLP index. Like my earlier posts on KMP and EPD this post takes a look at the partnership’s historical performance and how its positioned for the future. ETP has had a great run the last ten years like many MLPs. Since 2001 it has returned 24.7% CAGR along with a distribution growth of 11.9% CAGR over the same period. That’s slightly less than a 10-bagger over the last decade primarily driven by a high yield, … Continue reading

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