Energy Transfer Partners (ETP) Is the 'Chart of the Day'

NEW YORK (TheStreet) -- Shares of Energy Transfer Partners (ETP) were gaining 2.1% to $58.98 Friday after the natural gas company announced the completion of its merger with Regency Energy Partners on Thursday.

Regency Energy Partners became a wholly owned subsidiary of Energy Transfer Partners following the acquisition. Regency is no longer a publicly traded partnership as a result of the merger.

Energy Transfer Partners issues about 172.154 million common units to Regency Energy Partners unitholders as part of the deal. About 1.913 million Regency Energy Partners Series A preferred units were converted into new Energy Transfer Partners Series A preferred units.

Energy Transfer Partners is based in Dallas and is also the parent company of Sunoco (SUN).

About 2 million shares of Energy Transfer Partners were traded by 12:51 p.m. Friday, compared to the company's average trading volume of about 1.9 million shares a day.

Insight from TheStreet's Research Team:

Here is what Bryan Ashenberg and Bob Lang, Trifecta Stocks Portfolio Co-Managers, had to say about Energy Transfer Partners in a recent alert: 

It's not our normal style to look for names that are coming off lows when we look for trading ideas, but we will certainly notice a shift in trend when we are looking for stocks.

Energy Transfer Partners is coming off a swing low and has been driving higher on some robust turnover.

The volume on April 29 was over 18 million on the day, the biggest turnover we've seen in quite some time. The next day had the stock following through to the upside, gaining about 5% while the market was battling a bad tape.

In the chart, we can see the breakout from a one-month range. Furthermore, the Moving Average Convergence Divergence (MACD) has just crossed over and flashed a buy signal. The Relative Strength Index (RSI) is also showing power.

First resistance is at the 200-day Moving Average around $59. In addition, we have noticed very heavy option flow as well, tilted to the bullish side.

DISCLOSURE: Trifecta Stocks has no position in ETP. This Alert is a technical analysis of the company's chart, and we are not taking any action in the stock at this time.

-Bryan Ashenberg and Bob Lang, "Chart of the Day: ETP," originally published 5/1/15 on TrifectaStocks.com

Separately, TheStreet Ratings team rates ENERGY TRANSFER PARTNERS -LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENERGY TRANSFER PARTNERS -LP (ETP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 20.3%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ENERGY TRANSFER PARTNERS -LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ENERGY TRANSFER PARTNERS -LP turned its bottom line around by earning $1.65 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $1.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 120.0% when compared to the same quarter one year prior, rising from -$541.00 million to $108.00 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ENERGY TRANSFER PARTNERS -LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $564.00 million or 10.61% when compared to the same quarter last year. Despite a decrease in cash flow of 10.61%, ENERGY TRANSFER PARTNERS -LP is in line with the industry average cash flow growth rate of -13.13%.
  • You can view the full analysis from the report here: ETP Ratings Report
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