Energy Transfer Partners LP (ETP)

[Timothy Smith]

Following strong growth funding in H1, especially given somewhat constrained MLP capital markets, BofA believes ETP’s reasonable leverage profile (~5x net debt/EBITDA), strong ATM issuance program, drop-downs to Sunoco during 2016, and potential sale of its various equity stakes could mean no public marketed equity issuances for the foreseeable future.

Despite the positive outlook for ETP, the firm admits to a "relatively tight" near-term cash distribution coverage ratio forecast of 1x-1.1x distribution coverage through 2016, but notes that ETP’s assets are overwhelmingly fee based.