Why Energy Transfer Partners LP Investors Should Be Wary of This Hidden Cost
After a tough couple of years, Energy Transfer Partners (NYSE: ETP) finally seemed to turn the corner last quarter. Thanks to some sense of stability in the oil and gas market, as well as the benefit from recently completed expansion projects, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) leaped 16.7% while distributable cash flow rebounded 21.5% versus last year's second quarter. That enabled the company to comfortably cover its distribution to investors with a coverage ratio of 1.18.
However, that metric is a bit deceiving because it's getting propped up by some temporary support from parent company Energy Transfer Equity (NYSE: ETE). While the waning support is a concern, the payout itself is becoming a real issue.
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Source: Fool.com
Energy Transfer LP Stock
Currently there is a rather positive sentiment for Energy Transfer LP with 5 Buy predictions and 0 Sell predictions.
With a target price of 17 € there is potential for a 204.44% increase which would mean more than doubling the current price of 5.58 € for Energy Transfer LP.
