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Thursday, February 13, 2014

Hedge fund Kingdon Capital sees room for growth at Energy Transfer Equity, (NYSE: ETE)

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 said. "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 model.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.

Energy Transfer Equity, L.P. (Energy Transfer Equity) is a limited partnership company. Shares of ETE traded higher by 2.62% or $1.12/share to $43.89. In the past year, the shares have traded as low as $24.88 and as high as $43.10. On average, 1616810 shares of ETE exchange hands on a given day and today's volume is recorded at 1337132.