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Plains All American (PAA) Units Up Since Q3 Earnings Beat
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Plains All American Pipeline, L.P. (PAA - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per unit, which surpassed the Zacks Consensus Estimate of 28 cents by 17.9%. The bottom line improved 50% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 48 cents per unit against a loss of 15 cents in the year-ago period.
Courtesy of the better-than-expected performance of Plains All American Pipeline, the market reacted positively and the units of the firm have gained 2.7% post third-quarter earnings release.
Total Revenues
Total revenues of $14,336 million lagged the Zacks Consensus Estimate of $14,769 million by 2.9%. The top line improved 33% from $10,776 million reported a year ago.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
For the quarter under review, Plains All American’s total costs and expenses were $13,710 million, up 26.8% year over year. The increase was primarily due to higher purchases and related costs, an increase in field operating costs and higher general and administrative expenses.
Total adjusted EBITDA for the quarter was $623 million, up 21% from the year-ago period.
In the quarter, Crude Oil pipeline tariff volume was 7,581 thousand barrels per day (Mbls/d), up 23% year-over-year and NGL sales volume was 96 Mbls/d, up 10.3% year-over-year.
Net interest expenses were $99 million, down 6.6% from the year-ago quarter. The firm reduced its long-term debt level by more than $1.7 billion since 2020, which resulted in lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $536 million compared with $459 million in the year-ago quarter, up 17% year over year. The NGL Segment’s adjusted EBITDA was $86 million compared with $54 million in the year-ago quarter, up 59% year over year.
Financial Update
As of Sep 30, 2022, cash and cash equivalents were $623 million compared with $449 million as of Dec 31, 2021.
As of Sep 30, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. The free cash flow was $726 million compared with $1,093 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 45%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American expects an adjusted EBITDA of $2,450 million for 2022, up from the previously mentioned $2,375 million. The free cash flow for 2022 is expected to be $1,450 million, up from the prior stated $1,400 million.
Plains All American expects Crude pipeline volumes to average 7,550 Mbls/d (up from the previously stated 7,410 Mbls/d) and NGL sales volumes to be 140 Mbls/d for 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
Enterprise Products Partners L.P. (EPD - Free Report) reported third-quarter 2022 adjusted earnings per limited partner unit of 63 cents, beating the Zacks Consensus Estimate of 61 cents by 3.3%.
The Zacks Consensus Estimate for Enterprise Products Partners’ earnings per unit for 2022 is $2.47 suggests year-over-year growth of 17.6%. The firm reported an earnings surprise of 4.2% in the last four quarters, on average.
Magellan Midstream Partners, L.P. reported third-quarter 2022 adjusted earnings per limited partner unit of $1.29, beating the Zacks Consensus Estimate of $1.14 by 13.2%.
The Zacks Consensus Estimate for Magellan Midstream Partners’ total revenues for 2022 has moved up 11.7% year over year. The firm reported an earnings surprise of 9.6% in the trailing four quarters, on average.
PBF Logistics LP reported third-quarter 2022 adjusted earnings per unit of 55 cents, which lagged the Zacks Consensus Estimate of 61 cents by 9.9%.
The Zacks Consensus Estimate for PBF Logistics’ total revenues for 2022 has moved up 2.5% year over year. The firm reported an earnings surprise of 6.4% in the last four quarters, on average.
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Plains All American (PAA) Units Up Since Q3 Earnings Beat
Plains All American Pipeline, L.P. (PAA - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per unit, which surpassed the Zacks Consensus Estimate of 28 cents by 17.9%. The bottom line improved 50% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 48 cents per unit against a loss of 15 cents in the year-ago period.
Courtesy of the better-than-expected performance of Plains All American Pipeline, the market reacted positively and the units of the firm have gained 2.7% post third-quarter earnings release.
Total Revenues
Total revenues of $14,336 million lagged the Zacks Consensus Estimate of $14,769 million by 2.9%. The top line improved 33% from $10,776 million reported a year ago.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote
Highlights of the Release
For the quarter under review, Plains All American’s total costs and expenses were $13,710 million, up 26.8% year over year. The increase was primarily due to higher purchases and related costs, an increase in field operating costs and higher general and administrative expenses.
Total adjusted EBITDA for the quarter was $623 million, up 21% from the year-ago period.
In the quarter, Crude Oil pipeline tariff volume was 7,581 thousand barrels per day (Mbls/d), up 23% year-over-year and NGL sales volume was 96 Mbls/d, up 10.3% year-over-year.
Net interest expenses were $99 million, down 6.6% from the year-ago quarter. The firm reduced its long-term debt level by more than $1.7 billion since 2020, which resulted in lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $536 million compared with $459 million in the year-ago quarter, up 17% year over year. The NGL Segment’s adjusted EBITDA was $86 million compared with $54 million in the year-ago quarter, up 59% year over year.
Financial Update
As of Sep 30, 2022, cash and cash equivalents were $623 million compared with $449 million as of Dec 31, 2021.
As of Sep 30, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. The free cash flow was $726 million compared with $1,093 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 45%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American expects an adjusted EBITDA of $2,450 million for 2022, up from the previously mentioned $2,375 million. The free cash flow for 2022 is expected to be $1,450 million, up from the prior stated $1,400 million.
Plains All American expects Crude pipeline volumes to average 7,550 Mbls/d (up from the previously stated 7,410 Mbls/d) and NGL sales volumes to be 140 Mbls/d for 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Enterprise Products Partners L.P. (EPD - Free Report) reported third-quarter 2022 adjusted earnings per limited partner unit of 63 cents, beating the Zacks Consensus Estimate of 61 cents by 3.3%.
The Zacks Consensus Estimate for Enterprise Products Partners’ earnings per unit for 2022 is $2.47 suggests year-over-year growth of 17.6%. The firm reported an earnings surprise of 4.2% in the last four quarters, on average.
Magellan Midstream Partners, L.P. reported third-quarter 2022 adjusted earnings per limited partner unit of $1.29, beating the Zacks Consensus Estimate of $1.14 by 13.2%.
The Zacks Consensus Estimate for Magellan Midstream Partners’ total revenues for 2022 has moved up 11.7% year over year. The firm reported an earnings surprise of 9.6% in the trailing four quarters, on average.
PBF Logistics LP reported third-quarter 2022 adjusted earnings per unit of 55 cents, which lagged the Zacks Consensus Estimate of 61 cents by 9.9%.
The Zacks Consensus Estimate for PBF Logistics’ total revenues for 2022 has moved up 2.5% year over year. The firm reported an earnings surprise of 6.4% in the last four quarters, on average.