6. Energy Transfer Equity (ETE) is a Texas-based natural gas and propane provider.
The company paid a dividend of 62.5 cents during the quarter to shareholders, an increase of 11.6% from the first quarter of 2011. Distributable adjusted cash flow for the company was $126.4 million at the end of the quarter, compared to $125.2 million on Sept. 30, 2010. Currently, the stock is trading at a dividend yield of 5.7% and 8.8% one-year dividend growth, according to data compiled by Bloomberg.
For the third quarter, ETE reported total revenue of $2.09 billion, up 32.2% compared to $1.58 billion in the same quarter a year ago. Net income attributable to partners grew to $69.1 million, or 31 cents per share, from negative earnings of $4.8 million, or 7 cents during the quarter. Cash and cash equivalents increased to $167.7 million at the end of the quarter from $86.2 million from Dec. 31, 2010.With the addition of new fee-based projects, the company's stable cash flow profile and EBITDA is seen expanding over the next few years. The company expects to achieve and maintain distribution coverage ratio of 1.05 times. Total debt-to-adjusted EBITDA is pegged at 4 times to 4.25 times. Growth expenditure for 2012 is seen between $1.3 billion and $1.6 billion. Of the eight analysts covering the stock, seven recommend a buy and one rates a hold. Analysts polled by Bloomberg foresee the stock gaining an average 15.5% to $46.00 from the current levels in the next 12 months.
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