It has been about a month since the last earnings report for DCP Midstream Partners, LP . Shares have lost about 15.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DCP Midstream Partners, LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
DCP Midstream Q3 Earnings & Revenues Miss Estimates
DCP Midstream reported third-quarter adjusted earnings of 18 cents per unit, missing the Zacks Consensus Estimate of earnings of 70 cents. The bottom line also declined from the year-ago profit of 46 cents per unit.
Total quarterly revenues of $2,827 million missed the Zacks Consensus Estimate of $4,804 million. However, the top line increased from $1,586 million in the year-ago quarter.
The lower-than-expected results were owing to a decline in NGL pipelines throughput volumes. The negatives were partially offset by increased wellhead volumes in the North.
Operations
Logistics and Marketing
The segment recorded adjusted EBITDA of $184 million for the third quarter, down from the year-ago period’s $216 million. Lower NGL pipelines throughput volumes affected the segment. The negatives were partially offset by higher Southern Hills and Front Range volumes.
The average NGL pipelines throughput for the quarter was 668 thousand barrels per day (Mbpd), lower than the year-ago level of 680 Mbpd. Fractionator throughputs were recorded at 58 Mbpd, in line with the year-ago level.
Gathering and Processing
The segment reported adjusted EBITDA of $227 million for the third quarter, up from $176 million a year ago. Increased wellhead volumes in the North and favorable commodity prices aided the segment. The positives were partially offset by lower South region volumes.
Average natural gas wellhead volumes for the quarter declined to 4,221 million cubic feet per day (MMcf/d) from the year-ago period’s 4,364 MMcf/d. NGL gross production totaled 406 Mbpd, unchanged from the year-ago quarter’s level.
Total Expenses
Purchases and related costs significantly increased year over year for the quarter under review. Operating and maintenance expenses rose to $168 million from $146 million in the third quarter of 2020.
Total operating costs and expenses for the third quarter were $2,833 million, up from the year-ago figure of $1,526 million.
Financials
For third-quarter 2021, total expansion capital expenditure and equity investments were $12 million. Sustaining capital for the quarter was $17 million. It generated an excess free cash flow of $157 million in the third quarter.
At the end of third-quarter 2021, the partnership reported long-term debt of $5,325 million. Cash and cash equivalents were $3 million. It had current debt of $355 million, reflecting a debt to capitalization of 50.2%.
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Backed by strong performance in the first half and the robust third-quarter results, the partnership expects to deliver the high end of its financial guidance for 2021.
By 2030, the partnership is planning to lower its Scope 1 and 2 greenhouse gas emissions by 30%. Moreover, it expects to achieve net-zero emissions by 2050.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
At this time, DCP Midstream Partners, LP has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
DCP Midstream Partners, LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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DCP Midstream Partners, LP (DCP) Down 15.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for DCP Midstream Partners, LP . Shares have lost about 15.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DCP Midstream Partners, LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
DCP Midstream Q3 Earnings & Revenues Miss Estimates
DCP Midstream reported third-quarter adjusted earnings of 18 cents per unit, missing the Zacks Consensus Estimate of earnings of 70 cents. The bottom line also declined from the year-ago profit of 46 cents per unit.
Total quarterly revenues of $2,827 million missed the Zacks Consensus Estimate of $4,804 million. However, the top line increased from $1,586 million in the year-ago quarter.
The lower-than-expected results were owing to a decline in NGL pipelines throughput volumes. The negatives were partially offset by increased wellhead volumes in the North.
Operations
Logistics and Marketing
The segment recorded adjusted EBITDA of $184 million for the third quarter, down from the year-ago period’s $216 million. Lower NGL pipelines throughput volumes affected the segment. The negatives were partially offset by higher Southern Hills and Front Range volumes.
The average NGL pipelines throughput for the quarter was 668 thousand barrels per day (Mbpd), lower than the year-ago level of 680 Mbpd. Fractionator throughputs were recorded at 58 Mbpd, in line with the year-ago level.
Gathering and Processing
The segment reported adjusted EBITDA of $227 million for the third quarter, up from $176 million a year ago. Increased wellhead volumes in the North and favorable commodity prices aided the segment. The positives were partially offset by lower South region volumes.
Average natural gas wellhead volumes for the quarter declined to 4,221 million cubic feet per day (MMcf/d) from the year-ago period’s 4,364 MMcf/d. NGL gross production totaled 406 Mbpd, unchanged from the year-ago quarter’s level.
Total Expenses
Purchases and related costs significantly increased year over year for the quarter under review. Operating and maintenance expenses rose to $168 million from $146 million in the third quarter of 2020.
Total operating costs and expenses for the third quarter were $2,833 million, up from the year-ago figure of $1,526 million.
Financials
For third-quarter 2021, total expansion capital expenditure and equity investments were $12 million. Sustaining capital for the quarter was $17 million. It generated an excess free cash flow of $157 million in the third quarter.
At the end of third-quarter 2021, the partnership reported long-term debt of $5,325 million. Cash and cash equivalents were $3 million. It had current debt of $355 million, reflecting a debt to capitalization of 50.2%.
View
Backed by strong performance in the first half and the robust third-quarter results, the partnership expects to deliver the high end of its financial guidance for 2021.
By 2030, the partnership is planning to lower its Scope 1 and 2 greenhouse gas emissions by 30%. Moreover, it expects to achieve net-zero emissions by 2050.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
At this time, DCP Midstream Partners, LP has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
DCP Midstream Partners, LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.