Energy Transfer Equity (NYSE: ETE) was the best fourth-quarter performer in our portfolio. We’ve netted a total return of 53 percent since recommending ETE in June. The hedge fund Jana Partners was also high on the stock in a recent letter to investors, effusively praising the leadership of CEO Kelcy Warren, not least for his wily grab of the Lake Charles LNG terminal as part of the Southern Union acquisition.

The approved LNG export project that will be sited there will likely be a multi-decade cash cow for ETE, supporting distribution growth that should compound at an annual rate of 15 percent over the next five years. As Jana noted, it was ETE’s detailed financial projections of the likely Lake Charles cash flows, released in November, that really turbocharged the rally.

The hedge fund expects the unit price to move higher still in response to the IPO of a new subordinate LNG MLP that would actually own the Lake Charles assets. You can also expect continued acquisitions by ETE affiliates Energy Transfer Partners (NYSE: ETP), Regency Energy Partners and Sunoco Logistics Partners (NYSE: SXL), which will serve to increase ETE’s incentive distribution rights.

As a result, we are raising our split-adjusted buy below target for ETE to $46.