Energy Transfer Partners (ETP) Ups Quarterly Distribution

Energy Transfer Partners LP ETP announced an increase in its third-quarter distribution payout, the fifth consecutive quarterly hike by the partnership. The natural gas transportation and storage partnership declared third-quarter distribution of 97.5 cents per unit, a 2 cent improvement from the previous quarter. The new distribution represents an annualized payment of $3.90 per ETP unit.

Energy Transfer mentioned that the new distribution has a payment date of Nov 14 and will be paid to shareholders of record as of Nov 3, 2014.

The partnership has been consistently returning value to its unitholders, making it attractive for investors looking for a steady income source. Until the second quarter of 2013, Energy Transfer showed no growth in paid distribution, keeping it at the 2008 level. However, things seem to be panning out well for Energy Transfer Partners lately.

Sunoco Logistics Partners L.P. SXL, in which Energy Transfer holds general partner (GP) interest and Energy Transfer Equity, L.P. ETE, the GP owner of Energy Transfer Partners also announced increase in their quarterly cash distributions.

Energy Transfer Partners – which is currently trading at $64.49 per unit − is expected to report its third-quarter earnings on Nov 5, after the closing bell.

Over the past 30 days, the partnership has witnessed negative revisions in its earnings estimates. Currently, the third-quarter earnings estimate is pegged at 67 cents per unit. Moreover, the trailing four quarter results reflect a mixed bag, with the partnership beating the Zacks Consensus Estimate in two quarters while failing to meet estimates in the remaining.

Meanwhile, one could consider other stocks from the same sector like Delek Logistics Partners, LP DKL which appears to be currently better suited to beat earnings estimates this season.