Stock on Watch: Energy Transfer Partners, L.P. (ETP)

Company Profile:

Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals. Energy Transfer Partners, L.P. was founded in 1995 and is based in Dallas, Texas.

Recent News:

For the three months ended December 31, 2017, the company reported a net income of $1.10 billion, an increase of $1.43 billion compared to a net loss of $336 million for the same period last year.

On Jan. 29, 2018, the company announced a $0.01 increase in its quarterly cash distribution to $0.305 per ETE common unit for the fourth quarter ended December 31, 2017. This quarterly distribution will be paid on February 20, 2018 to unitholders of record as of the close of business on February 8, 2018.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ETP’s strengths can be seen in its better profitability and strong solvency compared with its peers. Its net income has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic Oscillator. RSI is strong in the bullish zone with MACD also trying to back cross up. We rate Energy Transfer Partners, L.P. (ETP) a STRONG BUY.