NEW YORK Feb 13 Energy Transfer Equity LP
is undervalued by 50 percent and could receive a shot in
the arm from the company's plan to issue this year a new master
limited partnership security tied to its Lake Charles natural
gas liquefaction facility, hedge fund Kingdon Capital Management
"Their intrinsic value is $60 today," Kingdon's Philip Hilal
said at the 2014 Harbor Investment Conference late on Wednesday.
The company has announced plans to complete an offering to
help finance construction of Lake Charles, which could help
investors ascribe fair value to the asset.
Energy Transfer Equity, which owns general partner interests
in three master limited partnerships, should benefit from rising
U.S. crude oil production and be largely insulated from
commodity-price fluctuations due to its fee-based business
It is also expected to benefit from acquisitions at Energy
Transfer Partners and growth at Sunoco Logistics Partners, two
of its daughter master limited partnerships, Hilal said.
The company has already said it will likely issue new master
limited partnership securities, which could help investors
ascribe a fair value to it.
Kingdon, which invests roughly $2.5 billion, gained 23.82
percent last year and its 15.08 percent average annual return
ranks among the strongest in the hedge fund industry.