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Plains All American (PAA) Q4 Earnings Lag, Revenues Top
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Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2017 adjusted earnings of 26 cents per unit, missing the Zacks Consensus Estimate of 42 cents by 38.09%. Reported earnings declined 29.7% from 37 cents in the year-ago quarter.
Total Revenues
In the fourth quarter, the partnership reported total revenues of $7,605 million, which beat the Zacks Consensus Estimate of $6,651 million by 14.34%.
Quarterly revenues were also up 21.7% from $5,952 million in the year-ago quarter.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
At the Transportation segment, adjusted EBITDA of $354 million increased 27% from the year-ago quarter, courtesy of higher volumes from Permian Basin systems and Eagle Ford JV system. However, the upside was offset by a one-time contract settlement and the sale of non-core assets in Rocky Mountain region.
At the Facilities segment, adjusted EBITDA of $184 million improved 8% from the year-ago quarter. The upside can be attributed to higher fee-based revenues at certain NGL Storage & facilities.
In the Supply and Logistics segment, adjusted EBITDA of $92 million decresed 39% year over year.
Highlights of the Release
In the quarter under review, Plains All American’s total cost and expenses were $7,344 million, up 28% year over year from $5,734 million, thanks to higher field operating costs. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $631 million, up 5.2%.
In the fourth quarter, the Diamond and STACK JV pipelines commenced operations. Also, the Cactus I and BridgeTex pipelines added 275,000 barrels per day of transportation capacity in the same time frame.
Interest expenses declined 5.5% to $120 million from a year ago.
The partnership’s operating income improved 19.7% to $261 million from $218 million a year ago.
Financial Update
As of Dec 31, 2017 current assets were $4,000 million compared with $4,272 million as of Dec 31, 2016.
As of Dec 31, Plains All American had long-term debt of $9,183 million compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio was 46%, down from 53% at the end of 2016.
Guidance
Plains All American has provided full-year 2018 adjusted EBITDA guidance of $2,300 million.
Expected adjusted EBITDA from Transportation segment, Facilities segment, Supply & Logistics segment are $1,535 million, $665 million, $100 million, respectively.
The partnership expects expansion capital to be $1,400 million, up from $1,135 million invested in 2017.
Upcoming Peer Releases
Enable Midstream Partners, LP , carrying a Zacks Rank # 2 (Buy), is set to report fourth-quarter 2017 results on Feb 20. The Zacks Consensus Estimate for earnings is pegged at 21 cents.
Summit Midstream Partners, LP (SMLP - Free Report) , carrying a Zacks Rank #2, is scheduled to report fourth-quarter 2017 results on Feb 22. The Zacks Consensus Estimate for earnings stan at 14 cents.
Buckeye Partners L.P. , carrying a Zacks Rank #3 (Hold), is set to report fourth-quarter 2017 results on Feb 9. The Zacks Consensus Estimate for earnings is pegged at 88 cents.
Zacks Rank
Plains All American carries a Zacks Rank #4 (Sell).
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Plains All American (PAA) Q4 Earnings Lag, Revenues Top
Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2017 adjusted earnings of 26 cents per unit, missing the Zacks Consensus Estimate of 42 cents by 38.09%. Reported earnings declined 29.7% from 37 cents in the year-ago quarter.
Total Revenues
In the fourth quarter, the partnership reported total revenues of $7,605 million, which beat the Zacks Consensus Estimate of $6,651 million by 14.34%.
Quarterly revenues were also up 21.7% from $5,952 million in the year-ago quarter.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise | Plains All American Pipeline, L.P. Quote
Segment Performance
At the Transportation segment, adjusted EBITDA of $354 million increased 27% from the year-ago quarter, courtesy of higher volumes from Permian Basin systems and Eagle Ford JV system. However, the upside was offset by a one-time contract settlement and the sale of non-core assets in Rocky Mountain region.
At the Facilities segment, adjusted EBITDA of $184 million improved 8% from the year-ago quarter. The upside can be attributed to higher fee-based revenues at certain NGL Storage & facilities.
In the Supply and Logistics segment, adjusted EBITDA of $92 million decresed 39% year over year.
Highlights of the Release
In the quarter under review, Plains All American’s total cost and expenses were $7,344 million, up 28% year over year from $5,734 million, thanks to higher field operating costs. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $631 million, up 5.2%.
In the fourth quarter, the Diamond and STACK JV pipelines commenced operations. Also, the Cactus I and BridgeTex pipelines added 275,000 barrels per day of transportation capacity in the same time frame.
Interest expenses declined 5.5% to $120 million from a year ago.
The partnership’s operating income improved 19.7% to $261 million from $218 million a year ago.
Financial Update
As of Dec 31, 2017 current assets were $4,000 million compared with $4,272 million as of Dec 31, 2016.
As of Dec 31, Plains All American had long-term debt of $9,183 million compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio was 46%, down from 53% at the end of 2016.
Guidance
Plains All American has provided full-year 2018 adjusted EBITDA guidance of $2,300 million.
Expected adjusted EBITDA from Transportation segment, Facilities segment, Supply & Logistics segment are $1,535 million, $665 million, $100 million, respectively.
The partnership expects expansion capital to be $1,400 million, up from $1,135 million invested in 2017.
Upcoming Peer Releases
Enable Midstream Partners, LP , carrying a Zacks Rank # 2 (Buy), is set to report fourth-quarter 2017 results on Feb 20. The Zacks Consensus Estimate for earnings is pegged at 21 cents.
Summit Midstream Partners, LP (SMLP - Free Report) , carrying a Zacks Rank #2, is scheduled to report fourth-quarter 2017 results on Feb 22. The Zacks Consensus Estimate for earnings stan at 14 cents.
Buckeye Partners L.P. , carrying a Zacks Rank #3 (Hold), is set to report fourth-quarter 2017 results on Feb 9. The Zacks Consensus Estimate for earnings is pegged at 88 cents.
Zacks Rank
Plains All American carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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