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Williams Partners (WPZ) Turns Around in Q3, Earnings Beat
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Williams Partners L.P.’s third-quarter 2016 earnings of 42 cents per limited-partner unit comfortably surpassed the Zacks Consensus Estimate of 25 cents per limited-partner unit. The partnership had incurred a loss of 32 cents per limited-partner unit in the year-ago quarter.
Total revenue increased 6.4% year over year in the quarter to $1,907 million from $1,792 million.
Williams Partners' distributable cash flow (DCF), associated with partnership operations in the reported quarter, was $795 million as against $754 million in the year-ago quarter. Recently, the partnership announced a regular quarterly cash distribution of 85 cents per unit.
Segment Performance
Consolidated adjusted segment profit was $1,189 million, up 8.1% from the year-ago level of $1,100 million.
Central: The Central operating area includes operations that were part of the former Access Midstream segment. The segment reported profits of $246 million compared with $230 million in the prior-year quarter.
Northeast G&P: The segment recorded profits of $214 million as against $208 million in third-quarter 2015. The improved results are primarily driven by lower operating and G&A expenses as well as higher fee-based revenues.
Atlantic-Gulf: The segment reported profits of $427 million compared with $414 million in the year-ago quarter. The upside was primarily due to higher fee-based revenues from both offshore gathering and processing operations including the new Gunflint and Kodiak facilities as well as Transco’s new expansion projects.
West: Segmental profit was $166 million as against $161 million a year ago.
NGL & Petchem Services: The segment reported profits of $136 million compared with $85 million in the year-earlier quarter.
In view of the shift in capital spending by Williams Partners from Transco and related Northeast G&P to revised Atlantic Sunrise in-service date as well as new projects and other changes, the partnership expects total growth capital and investment expenditures in 2017 between $2.1 billion and $2.8 billion. This includes total growth capital for Transco, which is expected to be between $1.4 billion and $1.9 billion.
Williams Partners expects Atlantic Sunrise to be brought online partially by the second half of 2017 and expects it to be fully commissioned by mid-2018.
Zacks Rank
Williams Partners currently has a Zacks Rank #2 (Buy).
Enbridge Inc. reported a negative earnings surprise of 10.00% in the prior-year quarter.
TransCanada posted a positive earnings surprise of 22.92% in the last reported quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
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Williams Partners (WPZ) Turns Around in Q3, Earnings Beat
Williams Partners L.P.’s third-quarter 2016 earnings of 42 cents per limited-partner unit comfortably surpassed the Zacks Consensus Estimate of 25 cents per limited-partner unit. The partnership had incurred a loss of 32 cents per limited-partner unit in the year-ago quarter.
Total revenue increased 6.4% year over year in the quarter to $1,907 million from $1,792 million.
Williams Partners' distributable cash flow (DCF), associated with partnership operations in the reported quarter, was $795 million as against $754 million in the year-ago quarter. Recently, the partnership announced a regular quarterly cash distribution of 85 cents per unit.
Segment Performance
Consolidated adjusted segment profit was $1,189 million, up 8.1% from the year-ago level of $1,100 million.
Central: The Central operating area includes operations that were part of the former Access Midstream segment. The segment reported profits of $246 million compared with $230 million in the prior-year quarter.
Northeast G&P: The segment recorded profits of $214 million as against $208 million in third-quarter 2015. The improved results are primarily driven by lower operating and G&A expenses as well as higher fee-based revenues.
Atlantic-Gulf: The segment reported profits of $427 million compared with $414 million in the year-ago quarter. The upside was primarily due to higher fee-based revenues from both offshore gathering and processing operations including the new Gunflint and Kodiak facilities as well as Transco’s new expansion projects.
West: Segmental profit was $166 million as against $161 million a year ago.
NGL & Petchem Services: The segment reported profits of $136 million compared with $85 million in the year-earlier quarter.
WILLIAMS PTR LP Price, Consensus and EPS Surprise
WILLIAMS PTR LP Price, Consensus and EPS Surprise | WILLIAMS PTR LP Quote
Guidance
In view of the shift in capital spending by Williams Partners from Transco and related Northeast G&P to revised Atlantic Sunrise in-service date as well as new projects and other changes, the partnership expects total growth capital and investment expenditures in 2017 between $2.1 billion and $2.8 billion. This includes total growth capital for Transco, which is expected to be between $1.4 billion and $1.9 billion.
Williams Partners expects Atlantic Sunrise to be brought online partially by the second half of 2017 and expects it to be fully commissioned by mid-2018.
Zacks Rank
Williams Partners currently has a Zacks Rank #2 (Buy).
Some better-ranked players from the same sector are Enbridge Inc. (ENB - Free Report) , Braskem SA (BAK - Free Report) and TransCanada Corporation (TRP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Inc. reported a negative earnings surprise of 10.00% in the prior-year quarter.
TransCanada posted a positive earnings surprise of 22.92% in the last reported quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>