What to Watch When Energy Transfer Reports Its Third-Quarter Results
On the one hand, Energy Transfer (NYSE: ET) is having a fantastic year. The energy company has produced record-setting results as earnings and cash flow have surged more than 30% year over year through the second quarter. Meanwhile, it added more fuel to continue growing at a fast pace by agreeing to acquire SemGroup (NYSE: SEMG) for $5 billion.
However, despite all that good news, units of the MLP have declined by about 2% this year. That underperformance is a real head-scratcher, as Energy Transfer has pushed up its yield to nearly 10% and its valuation down to a stupid-cheap level. Hopefully, the market will begin to rethink its view on Energy Transfer after getting another look at its performance when the company unveils its third-quarter results later this week. Here's what to watch in that report.
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Source Fool.com