Back to top

Analyst Blog

Energy Transfer Equity, L.P. (ETE - Snapshot Report) announced fourth-quarter 2013 earnings of 82 cents per unit, beating the Zacks Consensus Estimate of earnings of 27 cents.

On a GAAP basis, the partnership reported a loss of 31 cents. The difference was due to a one time charge related to goodwill impairment and loss on extinguishments of debt.

For 2013, the partnership’s earnings were $1.49 per unit, beating the Zacks Consensus Estimate by 65.5%.


Revenues at the end of the fourth quarter were $12.6 billion, beating the Zacks Consensus Estimate by 6.4%. Reported revenues increased approximately 11.4% year over year.

For 2013, revenues reported came in at $48.3 billion, beating the Zacks Consensus Estimate by 1.2% and up substantially 184.9% from the prior-year figure.

Highlights of the Release

In the quarter under review, Energy Transfer’s total costs and expenses increased 17.5% year over year to $12.8 billion. A rise in total expenses was primarily due to higher cost of sales and operating expenses.

Interest expenses of the partnership increased 7.7% year over year to $308.0 million in the quarter, primarily due to higher long-term debt level.

During the fourth quarter, the partnership launched a buyback program worth $1.0 billion of common units. Since the announcement, the partnership has repurchased 1.7 million ETE units.

Energy Transfer Equity announced an incremental quarterly cash distribution of 34.625 cents post two-for-one common unit split.

Financial Update

As of Dec 31, 2013, Energy Transfer Equity’s property plant & equipment was worth $30.7 billion versus $28.3 billion as of Dec 31, 2012.

Long-term debt, as of Dec 31, 2013, was $22.6 billion versus $21.4 billion as of Dec 31, 2012.

Energy Transfer increased its revolving credit capacity to $800 million for purchasing Regency’s common units worth $400 million.

Energy Transfer Equity’s adjusted distributable cash flow (“DCF”) for the quarter decreased 4.1% year over year to $185.0 million. For 2013, adjusted DCF was $719.0 million, up 7.6% from 2012.

Zacks Rank

Energy Transfer Equity currently has a Zacks Rank #2 (Buy). Other better-ranked stocks in the same industry include Crestwood Equity Partners LP (CEQP - Snapshot Report), Kinder Morgan Management LLC (KMR - Snapshot Report) and Magellan Midstream Partners LP (MMP - Analyst Report). While Crestwood Equity currently holds a Zacks Rank #1 (Strong Buy), Kinder Morgan and Magellan Midstream carry a Zacks Rank #2.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
INSITE VISI… INSV 0.30 +7.11%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%