AM gets a lot of love from the Wall Street Gang

[dan_s]

Antero Midstream Partners (AM), the midstream MLP (master limited partnership) formed by Antero Resources (AR) to provide natural gas midstream services, has a “buy” rating from 100% of the analysts surveyed by Reuters. AM is the only constituent of the Alerian MLP ETF (ETF) that has a “buy” rating from 100% of its analysts.

[dan_s]

Energy Transfer Equity (NYSE:ETE) is unique in the energy sector since it's not only one of the few remaining general partnerships, but it controls two master limited partnerships (MLPs): Energy Transfer Partners (NYSE:ETP) and Sunoco LP (NYSE:SUN). Those relationships are important to note because the company makes its money by collecting fees from those MLPs, which have grown burdensomely high in recent years. Because of that, many of its rivals have completed transactions to eliminate those payments, which in several cases have resulted in distribution cuts for investors.

Because it appears likely that Energy Transfer Equity will ultimately follow suit in eliminating those costly fees, income-focused investors are better off avoiding the company and its 6.6% yielding distribution for now. That's because several other pipeline companies offer payouts that are just as appealing and are on a more sustainable footing. Three of those better options are ONEOK (NYSE:OKE), MPLX (NYSE:MPLX), and Crestwood Equity Partners (NYSE:CEQP).

[cviller]

Dan,
Do you understand AMGP -- AM's general partner (20% anyway, the rest being privately held) -- well enough to have an opinion?
Thanks.

[dan_s]

AMGP is fine. If AR and AM grow as I expect them to do, then AMGP should be a good investment.