Global asset managers bought and sold hefty amounts of Energy Transfer Partners LP and Energy Transfer Equity LP units during the first quarter ahead of the oil and gas pipeline developer's expected 2019 consolidation, an S&P Global Market Intelligence analysis of SEC filings shows. Both Energy Transfer partnerships saw more selling than buying from big investors.
Morgan Stanley Investment Management Inc. and a subsidiary dumped 76% of their ETP holdings and 77% of their ETE stake, according to investment data from Form 13F filings. On the flip side, Merrill Lynch & Co. Inc. Banking Investments, acquired 25.4 million shares in both partnerships and grew its stake in ETE by 240%.

ETP and ETE aim to reorganize as a single entity before the end of 2019. Unlike many of its midstream peers that have ditched the master limited partnership model to consolidate as corporations, Energy Transfer is more inclined to combine into one big partnership given MLPs' tax advantage. That choice could further deter institutional energy pipeline investors, who in recent months have expressed a preference for the more streamlined C corporation structure that decreases public equity costs and allows for a larger investor base.
Brookfield Asset Management Inc. and BMO Global Asset Management also bought heavily into ETP during the first quarter. MLPs like Enterprise Products Partners LP and Williams Partners LP that no longer have incentive distribution rights agreements with their general partners also remained popular among institutional investors and saw net increases in institutional ownership. ONEOK Inc. and Plains All American Pipeline LP saw the largest increase in institutional ownership during the period.
Only two of the top 10 institutional investors most heavily involved in MLPs grew the number of their midstream positions during the first quarter. Most saw double-digit percentage decreases in the market value of their holdings even as companies posted strong financial results.

