Energy Transfer Shares Profit, Raises Distribution By 3.4%

Energy Transfer Equity, L.P. (NYSE:ETE) raised its quarterly cash distribution by 3.4% to 30.50 cents. The new cash distribution will be payable on Feb 20, to the unit holders of record as of Feb 8. Total annual distribution increased to $1.22.

Previously, Energy Transfer Equity hiked distribution in September 2017 by 3.5% to 29.50 cents.

What Backs the Consistent Distribution?

Energy Transfer is general partner of Energy Transfer Partners and owner of Lake Charles LNG Company. Energy Transfer Equity, along with subsidiaries, owns and operates assets in the entire midstream value chain, which assures strong return on investments.

Energy Transfer gained from projects completed in 2017. The partnership expects to gain from projects lined up to be completed in 2018. Ongoing capital investment for the NGL transportation, storage service and expansion of existing operations are likely to boost growth.

Stable earnings from well positioned asset and strong growth from major growth projects resulted in stable cash flow. This enables the partnership to pay and increase the cash distribution rate.

Price Movement

Energy Transfer’s shares have returned 2.8% in last six months time against the industry’s decline of 5.1%. The outperformance can be attributed to significant trade development.

Zacks Rank & Key Picks

Energy Transfer carries a Zacks Rank #3 (Hold). Here are a few better-ranked stocks from the same sector.

Enable Midstream Partners LP (NYSE:ENBL) carries a Zacks Rank #2 (Buy). The company reported average positive earnings surprise of 17.95%. In 2017, earnings estimates moved up 1.47% to 91 cents in the last 30 days.

Summit Midstream Partners LP (NYSE:SMLP) has a Zacks Rank #2. The company reported average positive earnings surprise of 76.61%. In 2017, earnings estimates moved up 31.43% to $1.60 in the last 30 days.

Total FinaEif, S.A (NYSE:TOT) has a Zacks Rank #2. The company reported average positive earnings surprise of 3.68%. In 2017, earnings estimates moved up 3.73% to $4.16 in the last 30 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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