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Energy Transfer Partners is a master limited partnership engaged in the processing, storage and transportation of natural gas. It holds as 70% stake in the Lone Star NGL LLC. This is a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets in Louisiana, Mississippi and Texas. Its business is divided into four segments: Midstream, Intrastate Transportation and Storage, Interstate Transportation, and NGL Transportation and Services.

We like Energy Transfers partners for the following reasons:

It is well positioned to benefit from the surge in production of natural gas from unconventional sources. It has the largest intrastate system in Texas. It is linked to nearly every natural-gas shale play in North America, including Fayetteville, Barnett shale, Haynesville, etc.

In 2011 it entered into a partnership with Regency Energy partners to purchase LDH Energy asset holdings for $1.9 billion; it is now known as Lone Star. This acquisition will be accretive to the bottom line while expanding the partnership's assets in the midstream services and transportation and storage business.

The partnership's sale of its propane business was a move in the right direction as it will help it focus on its pipeline business. The proceeds from the sale will also help it pay down its debt and reduce the need to raise financing from external sources.

It is well positioned to vie in the natural-gas midstream, transportation and storage business as the partnership has a strong presence in the major gas producing regions in the United States.

Reasons to be bullish on Energy Transfer Partners:

  • A good yield of 7.3%
  • A five year dividend average of 7.6%
  • While net income dropped in comparison to 2009 it rose above 2010 levels
  • EBITA increased from $1.5 billion in 2009 to $1.6 billion in 2011
  • Cash flow per share from $5.34 in 2010 to $5.67 in 2011
  • The sale of its propane business will help it concentrate on its pipeline assets
  • Sales increased from $5.4 billion in 2009 to $6.8 billion
  • A good 5 year dividend growth rate of 7%
  • A good 5 year ROE average of 18.6%
  • A quarterly earnings growth of 25%
  • Operating margins of 18.7%
  • Year over year grown projections are 29% and 27% for 2012 and 2013 respectively
  • $100K invested for 10 years would have grown to $521; if the dividends were reinvested the rate of return would be much higher

Company: Energy Transfer Partners (ETP)

Basic Key ratios

Percentage Held by Insiders = 3

Growth

  1. Net Income ($mil) 12/2011 = 669
  2. Net Income ($mil) 12/2010 = 617
  3. Net Income ($mil) 12/2009 = 792
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 8.39
  5. Quarterly Net Income this Quarterly/same Quarter year ago = -8.86
  1. EBITDA ($mil) 12/2011 = 1631
  2. EBITDA ($mil) 12/2010 = 1398
  3. EBITDA ($mil) 12/2009 = 1520
  4. Annual Net Income this Yr/ Net Income last Yr = 8.38
  5. Cash Flow ($/share) 12/2011 = 5.67
  6. Cash Flow ($/share) 12/2010 = 5.34
  7. Cash Flow ($/share) 12/2009 = 6.32
  1. Sales ($mil) 12/2011 = 6850
  2. Sales ($mil) 12/2010 = 5885
  3. Sales ($mil) 12/2009 = 5417
  1. Annual EPS before NRI 12/2007 = 3.31
  2. Annual EPS before NRI 12/2008 = 4.09
  3. Annual EPS before NRI 12/2009 = 2.51
  4. Annual EPS before NRI 12/2010 = 1.47
  5. Annual EPS before NRI 12/2011 = 1.48

Dividend history

  1. Dividend Yield = 7.3
  2. Dividend Yield 5 Year Average 12/2011 = 7.65
  3. Dividend Yield 5 Year Average 09/2011 = 7.65
  4. Annual Dividend 12/2011 = 3.58
  5. Annual Dividend 12/2010 = 3.58
  6. Forward Yield = 7.2
  7. Dividend 5 year Growth = 7

Dividend sustainability

  1. Payout Ratio 06/2011 = 2.31
  2. Payout Ratio 5 Year Average 12/2011 = 1.59
  3. Payout Ratio 5 Year Average 09/2011 = 1.59
  4. Payout Ratio 5 Year Average 06/2011 = 1.59
  5. Change in Payout Ratio = 0.72

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -7.85
  2. Next 3-5 Year Estimate EPS Growth rate = 14.46
  3. EPS Growth Quarterly(1)/Q(-3) = 130.99
  4. ROE 5 Year Average 12/2011 = 18.6
  5. ROE 5 Year Average 09/2011 = 18.6
  6. ROE 5 Year Average 06/2011 = 18.57
  7. Return on Investment 06/2011 = 5.6
  8. Debt/Total Cap 5 Year Average 12/2011 = 57.05
  9. Current Ratio 06/2011 = 0.81
  10. Current Ratio 5 Year Average = 1.16
  11. Quick Ratio = 0.61
  12. Cash Ratio = 0.19
  13. Interest Coverage Quarterly = 2.50

Valuation

  1. Book Value Quarterly = 30.3
  2. Price/ Book = 1.68
  3. Price/ Cash Flow = 8.99

OTHER INTERSTING COMPANIES TO CONSIDER

For investors looking for other investment ideas extensive data has been provided on four additional companies to get you started.

Company: EQT Corp (EQT)

Basic Key ratios

  1. Percentage Held by Insiders = 1.34

Growth

  1. Net Income ($mil) 12/2011 = 480
  2. Net Income ($mil) 12/2010 = 228
  3. Net Income ($mil) 12/2009 = 157
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 64.02
  5. Quarterly Net Income this Quarterly/same Quarter year ago = -41.08
  1. EBITDA ($mil) 12/2011 = 1235
  2. EBITDA ($mil) 12/2010 = 754
  3. EBITDA ($mil) 12/2009 = 561
  4. Annual Net Income this Yr/ Net Income last Yr = 110.7
  5. Cash Flow ($/share) 12/2011 = 4.52
  6. Cash Flow ($/share) 12/2010 = 3.34
  7. Cash Flow ($/share) 12/2009 = 2.68
  1. Sales ($mil) 12/2011 = 1640
  2. Sales ($mil) 12/2010 = 1323
  3. Sales ($mil) 12/2009 = 1270
  1. Annual EPS before NRI 12/2007 = 2.1
  2. Annual EPS before NRI 12/2008 = 2
  3. Annual EPS before NRI 12/2009 = 1.18
  4. Annual EPS before NRI 12/2010 = 1.57
  5. Annual EPS before NRI 12/2011 = 2.24

Dividend history

  1. Dividend Yield = 1.71
  2. Dividend Yield 5 Year Average 12/2011 = 1.96
  3. Dividend Yield 5 Year Average 09/2011 = 1.96
  4. Annual Dividend 12/2011 = 0.88
  5. Annual Dividend 12/2010 = 0.88
  6. Forward Yield = 1.77
  7. Dividend 5 year Growth 12/2011 = 0

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.43
  2. Payout Ratio 06/2011 = 0.39
  3. Payout Ratio 5 Year Average 12/2011 = 0.53
  4. Payout Ratio 5 Year Average 09/2011 = 0.53
  5. Payout Ratio 5 Year Average 06/2011 = 0.53
  6. Change in Payout Ratio = -0.1

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -5.32
  2. Next 3-5 Year Estimate EPS Growth rate = 22.25
  3. EPS Growth Quarterly (1)/Q(-3) = 125.37
  4. 5 Year History EPS Growth 12/2011 = 3.79
  5. 5 Year History EPS Growth 09/2011 = 3.79
  6. ROE 5 Year Average 12/2011 = 12.5
  7. ROE 5 Year Average 09/2011 = 12.5
  8. ROE 5 Year Average 06/2011 = 13.24
  9. Return on Investment 12/2011 = 5.44
  10. Return on Investment 09/2011 = 5.44
  11. Return on Investment 06/2011 = 6.16
  12. Debt/Total Cap 5 Year Average 12/2011 = 41.81
  13. Debt/Total Cap 5 Year Average 09/2011 = 41.81
  14. Debt/Total Cap 5 Year Average 06/2011 = 42.1
  1. Current Ratio 12/2011 = 2.24
  2. Current Ratio 09/2011 = 2.24
  3. Current Ratio 06/2011 = 2.1
  4. Current Ratio 5 Year Average = 1.32
  5. Quick Ratio = 1.95
  6. Cash Ratio = 1.76
  7. Interest Coverage Quarterly = 3.83

Company: Brady Corp (BRC)

Basic Key ratios

Percentage Held by Insiders = 15.6

Growth

  1. Net Income ($mil) 12/2011 = 109
  2. Net Income ($mil) 12/2010 = 82
  3. Net Income ($mil) 12/2009 = 70
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = -99.01
  5. Quarterly Net Income this Quarterly/same Quarter year ago = -471.73
  1. EBITDA ($mil) 12/2011 = 215
  2. EBITDA ($mil) 12/2010 = 184
  3. EBITDA ($mil) 12/2009 = 177
  4. Annual Net Income this Yr/ Net Income last Yr = 32.58
  5. Cash Flow ($/share) 12/2011 = 3.1
  6. Cash Flow ($/share) 12/2010 = 2.76
  7. Cash Flow ($/share) 12/2009 = 2.77
  1. Sales ($mil) 12/2011 = 1340
  2. Sales ($mil) 12/2010 = 1259
  3. Sales ($mil) 12/2009 = 1209
  1. Annual EPS before NRI 12/2007 = 2.15
  2. Annual EPS before NRI 12/2008 = 2.41
  3. Annual EPS before NRI 12/2009 = 1.71
  4. Annual EPS before NRI 12/2010 = 1.74
  5. Annual EPS before NRI 12/2011 = 2.16

Dividend history

  1. Dividend Yield = 2.4
  2. Dividend Yield 5 Year Average 12/2011 = 2.26
  3. Dividend Yield 5 Year Average 09/2011 = 2.26
  4. Annual Dividend 12/2011 = 0.72
  5. Annual Dividend 12/2010 = 0.7
  6. Forward Yield = 2.39
  7. Dividend 5 year Growth 12/2011 = 5.96

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.33
  2. Payout Ratio 06/2011 = 0.33
  3. Payout Ratio 5 Year Average 12/2011 = 0.34
  4. Payout Ratio 5 Year Average 09/2011 = 0.34
  5. Payout Ratio 5 Year Average 06/2011 = 0.34
  6. Change in Payout Ratio = -0.01

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -20.84
  2. Next 3-5 Year Estimate EPS Growth rate = 7
  3. EPS Growth Quarterly(1)/Q(-3) = 110.91
  4. 5 Year History EPS Growth 12/2011 = -1.7
  5. 5 Year History EPS Growth 09/2011 = -1.7
  6. ROE 5 Year Average 12/2011 = 11.24
  7. ROE 5 Year Average 09/2011 = 11.24
  8. ROE 5 Year Average 06/2011 = 11.45
  9. Return on Investment 12/2011 = 8.18
  10. Return on Investment 09/2011 = 8.18
  11. Return on Investment 06/2011 = 8.05
  12. Debt/Total Cap 5 Year Average 12/2011 = 28.87
  13. Debt/Total Cap 5 Year Average 09/2011 = 28.87
  14. Debt/Total Cap 5 Year Average 06/2011 = 29.4
  1. Current Ratio 12/2011 = 2.87
  2. Current Ratio 09/2011 = 2.87
  3. Current Ratio 06/2011 = 2.64
  4. Current Ratio 5 Year Average = 2.4
  5. Quick Ratio = 2.17
  6. Cash Ratio = 1.41
  7. Interest Coverage Quarterly = 2.80

Company: Cisco Systems (CSCO)

Levered free cash flow = $9.93B

Basic Key ratios

  1. Percentage Held by Insiders = 0.09
  2. Number of Institutional Sellers 12 Weeks = 3

Growth

  1. Net Income ($mil) 12/2011 = 6490
  2. Net Income ($mil) 12/2010 = 7767
  3. Net Income ($mil) 12/2009 = 6134
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = -7.65
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 43.46
  1. EBITDA ($mil) 12/2011 = 10939
  2. EBITDA ($mil) 12/2010 = 12068
  3. EBITDA ($mil) 12/2009 = 9807
  4. Net Income Reported Quarterlytr ($mil) = 2182
  5. Annual Net Income this Yr/ Net Income last Yr = -16.44
  6. Cash Flow ($/share) 12/2011 = 1.87
  7. Cash Flow ($/share) 12/2010 = 1.79
  8. Cash Flow ($/share) 12/2009 = 1.49
  1. Sales ($mil) 12/2011 = 43218
  2. Sales ($mil) 12/2010 = 40040
  3. Sales ($mil) 12/2009 = 36117
  1. Annual EPS before NRI 12/2007 = 1.25
  2. Annual EPS before NRI 12/2008 = 1.43
  3. Annual EPS before NRI 12/2009 = 1.17
  4. Annual EPS before NRI 12/2010 = 1.4
  5. Annual EPS before NRI 12/2011 = 1.4

Dividend history

  1. Dividend Yield = 1.60
  2. Dividend Yield 5 Year Average 12/2011 = 0.3
  3. Dividend Yield 5 Year Average 09/2011 = 0.3
  4. Annual Dividend 12/2011 = 0.12
  5. Annual Dividend 12/2010 = 0
  6. Forward Yield = 1.61
  7. Dividend 5 year Growth 12/2011 = N/A

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.16
  2. Payout Ratio 06/2011 = 0.17
  3. Payout Ratio 5 Year Average 12/2011 = 0.03
  4. Payout Ratio 5 Year Average 09/2011 = 0.03
  5. Payout Ratio 5 Year Average 06/2011 = 0.03
  6. Change in Payout Ratio = 0.12

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 11.61
  2. Next 3-5 Year Estimate EPS Growth rate = 8
  3. EPS Growth Quarterly(1)/Q(-3) = -138.71
  4. 5 Year History EPS Growth 12/2011 = 2.37
  5. ROE 5 Year Average 12/2011 = 21.53
  6. Return on Investment 12/2011 = 12.96
  7. Debt/Total Cap 5 Year Average 12/2011 = 20.45
  1. Current Ratio 12/2011 = 3.37
  2. Current Ratio 09/2011 = 3.37
  3. Current Ratio 06/2011 = 3.28
  4. Current Ratio 5 Year Average = 2.93
  5. Quick Ratio = 3.18
  6. Cash Ratio = 2.92
  7. Interest Coverage Quarterly = 19.33

Company: Anadarko Petrol (APC)

Basic Key ratios

  1. Percentage Held by Insiders = 0.19
  2. Relative Strength 52 weeks = 50
  3. Dividend 5-year Growth = 0
  4. Cash Flow 5 -year Average = 10.67
  5. Dividend Yield 5-Year Average = 0.63

Growth

  1. Net Income ($mil) 12/2011 = -2649
  2. Net Income ($mil) 12/2010 = 761
  3. Net Income ($mil) 12/2009 = -135
  1. EBITDA ($mil) 12/2011 = 1245
  2. EBITDA ($mil) 12/2010 = 6210
  3. EBITDA ($mil) 12/2009 = 4126
  1. Cash Flow ($/share) 12/2011 = 11.07
  2. Cash Flow ($/share) 12/2010 = 9.32
  3. Cash Flow ($/share) 12/2009 = 6.25
  1. Sales ($mil) 12/2011 = 13967
  2. Sales ($mil) 12/2010 = 10984
  3. Sales ($mil) 12/2009 = 9000
  1. Annual EPS before NRI 12/2007 = 8.34
  2. Annual EPS before NRI 12/2008 = 6.92
  3. Annual EPS before NRI 12/2009 = -0.96
  4. Annual EPS before NRI 12/2010 = 1.81
  5. Annual EPS before NRI 12/2011 = 3.38

Dividend history

  1. Dividend Yield = 0.5
  2. Dividend Yield 5 Year Average 12/2011 = 0.63
  3. Forward Yield = 0.5

Dividend sustainability

  1. Payout Ratio 06/2011 = 0.11
  2. Payout Ratio 5 Year Average 12/2011 = 0.2
  3. Change in Payout Ratio = -0.1

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -13.07
  2. Next 3-5 Year Estimate EPS Growth rate = 27.15
  3. EPS Growth Quarterly(1)/Q(-3) = -116.44
  4. ROE 5 Year Average 12/2011 = 6.93
  5. Return on Investment 06/2011 = 4.94
  6. Debt/Total Cap 5 Year Average 12/2011 = 39.25
  1. Current Ratio 06/2011 = 1.42
  2. Current Ratio 5 Year Average = 1.25
  3. Quick Ratio = 1.42
  4. Cash Ratio = 0.75
  5. Interest Coverage Quarterly = N/A

Conclusion

ETP is still overbought, but the current pullback is helping to move back into the ranges which will make it an attractive buy. A good entry point would be to open up positions at 44 or better. One way to achieve this would be to sell naked puts around this strike price. In essence, you get paid to put in a limit order.

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware.

Source: Energy Transfer Partners: A Great Long-Term Candidate?

Additional disclosure: EPS, and EPS surprise charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com. Growth and earnings estimate tables sourced from dailyfinance.com.