Why Energy Transfer Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas transporter Energy Transfer Partners (NYSE: ETP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Energy Transfer and see what CAPS investors are saying about the stock right now.

Energy Transfer facts

Headquarters (Founded)

Dallas (2002)

Market Cap

$13.8 billion

Industry

Oil and gas transportation and storage

Trailing-12-Month Revenue

$5.8 billion

Management

CEO Kelcy Warren (since 2007)
CFO Martin Salinas Jr. (since 2008)

Return on Equity (Average, Past 3 Years)

17.1%

Cash/Debt

$110.4 million / $9.0 billion

Dividend Yield

7.8%

Competitors

DCP Midstream Partners (NYSE: DPM  )
El Paso
Enbridge
(NYSE: ENB  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 918 members who have rated Energy Transfer believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFmd19, succinctly summed up the Energy Transfer bull case for our community:

Unlike its midstream energy MLP peers, Energy Transfer Partners hasn't raised its quarterly distribution since 2008. That streak is likely coming to an end in 2013 as the company's diversification efforts are about to pay off. ...

Energy Transfer is also working on several organic growth projects in the Eagle Ford Shale that are just beginning to come online. These assets are will grow the company's interest in the important NGL pipeline and fractionation market. ... Look for 2013 to be Energy Transfer's year as both the distribution and stock should head higher as it finishes up digesting recent acquisitions and completes its organic growth projects.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Energy Transfer may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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