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DCP Midstream Partners, LP (DCP) Up 0.5% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for DCP Midstream Partners, LP . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DCP Midstream Partners, LP due for a pullback? 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 drivers.
DCP Midstream Q3 Earnings Beat Estimates
The partnership reported third-quarter adjusted earnings of $1.50 per unit, beating the Zacks Consensus Estimate of $1.05. The bottom line improved from the year-ago quarter’s earnings of 18 cents per unit.
Total quarterly revenues of $4,319 million beat the Zacks Consensus Estimate of $3,937 million. The top line increased from $2,827 million in the year-ago quarter.
Operations
Logistics and Marketing
The segment of DCP Midstream recorded adjusted EBITDA of $224 million in the third quarter, up from the year-ago period’s $184 million. Higher NGL pipeline throughput volumes and tariffs aided the segment.
The average NGL pipeline throughput in the quarter was 731 thousand barrels per day (Mbpd), higher than the year-ago quarter’s 668 Mbpd. Fractionator throughputs were recorded at 62 Mbpd, increasing from the year-ago quarter of 58 Mbpd.
Gathering and Processing
The segment reported adjusted EBITDA of $306 million in the third quarter, up from $227 million in the year-ago quarter. Increased wellhead volumes aided the segment.
Average natural gas wellhead volumes in the quarter rose to 4,492 million cubic feet per day (MMcf/d) from the year-ago period’s 4,221 MMcf/d. NGL gross production totaled 436 Mbpd, up from 406 Mbpd.
Total Expenses
Purchases and related costs significantly increased year over year in the quarter under review. Operating and maintenance expenses rose to $193 million from $168 million in the third quarter of 2021.
Total operating costs and expenses were $4,072 million, up from the year-ago quarter’s figure of $2,833 million.
Financials
In third-quarter 2022, total growth capital expenditures, acquisition and equity investments were $184 million. Sustaining capital in the quarter was $30 million. DCP generated an excess free cash flow of $52 million in the reported quarter.
At the end of the third quarter, DCP Midstream reported long-term debt of $4,317 million. Cash and cash equivalents were $93 million. It had current debt of $506 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 10.42% due to these changes.
VGM Scores
At this time, DCP Midstream Partners, LP has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise DCP Midstream Partners, LP has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
DCP Midstream Partners, LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Williams Companies, Inc. The (WMB - Free Report) , has gained 5.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Williams Companies, Inc. The reported revenues of $3.02 billion in the last reported quarter, representing a year-over-year change of +22.1%. EPS of $0.48 for the same period compares with $0.34 a year ago.
For the current quarter, Williams Companies, Inc. The is expected to post earnings of $0.46 per share, indicating a change of +18% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
Williams Companies, Inc. The has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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DCP Midstream Partners, LP (DCP) Up 0.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for DCP Midstream Partners, LP . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DCP Midstream Partners, LP due for a pullback? 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 drivers.
DCP Midstream Q3 Earnings Beat Estimates
The partnership reported third-quarter adjusted earnings of $1.50 per unit, beating the Zacks Consensus Estimate of $1.05. The bottom line improved from the year-ago quarter’s earnings of 18 cents per unit.
Total quarterly revenues of $4,319 million beat the Zacks Consensus Estimate of $3,937 million. The top line increased from $2,827 million in the year-ago quarter.
Operations
Logistics and Marketing
The segment of DCP Midstream recorded adjusted EBITDA of $224 million in the third quarter, up from the year-ago period’s $184 million. Higher NGL pipeline throughput volumes and tariffs aided the segment.
The average NGL pipeline throughput in the quarter was 731 thousand barrels per day (Mbpd), higher than the year-ago quarter’s 668 Mbpd. Fractionator throughputs were recorded at 62 Mbpd, increasing from the year-ago quarter of 58 Mbpd.
Gathering and Processing
The segment reported adjusted EBITDA of $306 million in the third quarter, up from $227 million in the year-ago quarter. Increased wellhead volumes aided the segment.
Average natural gas wellhead volumes in the quarter rose to 4,492 million cubic feet per day (MMcf/d) from the year-ago period’s 4,221 MMcf/d. NGL gross production totaled 436 Mbpd, up from 406 Mbpd.
Total Expenses
Purchases and related costs significantly increased year over year in the quarter under review. Operating and maintenance expenses rose to $193 million from $168 million in the third quarter of 2021.
Total operating costs and expenses were $4,072 million, up from the year-ago quarter’s figure of $2,833 million.
Financials
In third-quarter 2022, total growth capital expenditures, acquisition and equity investments were $184 million. Sustaining capital in the quarter was $30 million. DCP generated an excess free cash flow of $52 million in the reported quarter.
At the end of the third quarter, DCP Midstream reported long-term debt of $4,317 million. Cash and cash equivalents were $93 million. It had current debt of $506 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 10.42% due to these changes.
VGM Scores
At this time, DCP Midstream Partners, LP has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise DCP Midstream Partners, LP has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
DCP Midstream Partners, LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Williams Companies, Inc. The (WMB - Free Report) , has gained 5.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Williams Companies, Inc. The reported revenues of $3.02 billion in the last reported quarter, representing a year-over-year change of +22.1%. EPS of $0.48 for the same period compares with $0.34 a year ago.
For the current quarter, Williams Companies, Inc. The is expected to post earnings of $0.46 per share, indicating a change of +18% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.9% over the last 30 days.
Williams Companies, Inc. The has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.