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Energy Transfer (ETP) Q2 Earnings Lag Estimates on High Costs
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Energy Transfer Partners, L.P. delivered second-quarter 2018 earnings of 5 cents per limited partner unit, missing the Zacks Consensus Estimate of 17 cents. The weaker-than-expected results can be attributed to increased costs. However, the bottom line improved significantly from the year-ago loss of 4 cents in the second quarter of 2017 on the back of stronger year-over-year contribution from all the segments. Quarterly revenues increased to $9,410 million from $6,576 million a year ago. Further, the top line surpassed the Zacks Consensus Estimate of $8,524 million.
Energy Transfer Partners, L.P. Price, Consensus and EPS Surprise
Last month, Energy Transfer Partners announced second-quarter distribution of 56.5 cents per unit ($2.26 per unit annualized), unchanged from the last reported quarter.
EBITDA, Operating Income and Net Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $2,051 million compared with $1,545 million a year ago. The improvement of 32.7% can be primarily attributed to strong performance from the Crude Oil Transportation and Services segment that came up with EBITDA of $548 million, surging a whopping 140.4% from the year-ago quarter. The partnership’s Crude Oil Transportation and Services segment benefited from the Bakken Pipeline project (which entered into service in the second quarter of 2017) along with strong crude oil throughput volumes from West Texas.
Further, the NGL Transportation and Services segment reported EBITDA of $461 million in the quarter under review compared with $388 million in the prior-year quarter. Increased NGL transportation and fractionation volumes from the Permian region drove the results of the above-mentioned segment. However, the results were partly offset by lower refined products terminal volumes, especially from the Midwest region.
The Midstream segment generated EBITDA of $414 million compared with $412 million recorded in the second quarter of 2017. The segment benefited from higher production volumes in the Permian and North East regions. Higher non-fee-based processing margins and increased fee-based revenues also bolstered the results compared with the prior-year quarter.
The Interstate Transportation/Storage segment also reported higher EBITDA of $330 million compared with $262 million recorded a year ago on higher volumes of natural gas transported. Likewise, the results from the Intrastate Transportation/Storage segment were also stronger, with adjusted EBITDA of $208 million recorded in the quarter compared with $148 million in the year-ago quarter. However, EBITDA from all other segments decreased to $90 million from $107 million in the year-ago quarter.
The partnership reported operating income of $943 million compared with $736 million in second-quarter 2017 on the back of higher revenues, despite increasing costs.
Notably, the partnership reported total expense of $8,467 million in second-quarter 2018, reflecting an increase of 45% from the prior-year quarter. The higher expenses can primarily be attributed to increased cost of products sold, along with a rise in operating and depreciation costs.
Energy Transfer Partners reported a net income of $602 million in the quarter under review, skyrocketing 103.4% from $296 million recorded in the year-ago quarter.
Distributable Cash Flow
Distributable cash flow of $1,487 million was higher than the prior-year level of $978 million, reflecting a hike of 52%. The partnership’s distribution coverage increased to $1.23x from 1.12x in the year-ago quarter.
Balance Sheet
As of Jun 30, 2018, Energy Transfer Partners had a long-term debt (less current maturities) of $33,741 million. The debt-to-capitalization ratio of the company was about 49.8%.
Zacks Rank and Key Picks
Currently, Energy Transfer Partners carries a Zacks Rank #3 (Hold).
Meanwhile, one can opt for some better-ranked energy players like Bonanza Creek Energy, Inc. , Carrizo Oil & Gas, Inc. and Murphy Oil Corporation (MUR - Free Report) . While Bonanza Creek sports a Zacks Rank #1 (Strong Buy), Carrizo and Murphy Oil both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bonanza Creek surpassed earnings estimates in three out of the last four quarters, with an average of 74.88%.
Carrizo topped estimates in each of the trailing four quarters, delivering a positive earnings surprise of 26.11%.
Murphy Oil delivered an average positive earnings surprise of 96.50% in the trailing four quarters.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Energy Transfer (ETP) Q2 Earnings Lag Estimates on High Costs
Energy Transfer Partners, L.P. delivered second-quarter 2018 earnings of 5 cents per limited partner unit, missing the Zacks Consensus Estimate of 17 cents. The weaker-than-expected results can be attributed to increased costs. However, the bottom line improved significantly from the year-ago loss of 4 cents in the second quarter of 2017 on the back of stronger year-over-year contribution from all the segments. Quarterly revenues increased to $9,410 million from $6,576 million a year ago. Further, the top line surpassed the Zacks Consensus Estimate of $8,524 million.
Energy Transfer Partners, L.P. Price, Consensus and EPS Surprise
Energy Transfer Partners, L.P. Price, Consensus and EPS Surprise | Energy Transfer Partners, L.P. Quote
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced second-quarter distribution of 56.5 cents per unit ($2.26 per unit annualized), unchanged from the last reported quarter.
EBITDA, Operating Income and Net Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter were $2,051 million compared with $1,545 million a year ago. The improvement of 32.7% can be primarily attributed to strong performance from the Crude Oil Transportation and Services segment that came up with EBITDA of $548 million, surging a whopping 140.4% from the year-ago quarter. The partnership’s Crude Oil Transportation and Services segment benefited from the Bakken Pipeline project (which entered into service in the second quarter of 2017) along with strong crude oil throughput volumes from West Texas.
Further, the NGL Transportation and Services segment reported EBITDA of $461 million in the quarter under review compared with $388 million in the prior-year quarter. Increased NGL transportation and fractionation volumes from the Permian region drove the results of the above-mentioned segment. However, the results were partly offset by lower refined products terminal volumes, especially from the Midwest region.
The Midstream segment generated EBITDA of $414 million compared with $412 million recorded in the second quarter of 2017. The segment benefited from higher production volumes in the Permian and North East regions. Higher non-fee-based processing margins and increased fee-based revenues also bolstered the results compared with the prior-year quarter.
The Interstate Transportation/Storage segment also reported higher EBITDA of $330 million compared with $262 million recorded a year ago on higher volumes of natural gas transported. Likewise, the results from the Intrastate Transportation/Storage segment were also stronger, with adjusted EBITDA of $208 million recorded in the quarter compared with $148 million in the year-ago quarter. However, EBITDA from all other segments decreased to $90 million from $107 million in the year-ago quarter.
The partnership reported operating income of $943 million compared with $736 million in second-quarter 2017 on the back of higher revenues, despite increasing costs.
Notably, the partnership reported total expense of $8,467 million in second-quarter 2018, reflecting an increase of 45% from the prior-year quarter. The higher expenses can primarily be attributed to increased cost of products sold, along with a rise in operating and depreciation costs.
Energy Transfer Partners reported a net income of $602 million in the quarter under review, skyrocketing 103.4% from $296 million recorded in the year-ago quarter.
Distributable Cash Flow
Distributable cash flow of $1,487 million was higher than the prior-year level of $978 million, reflecting a hike of 52%. The partnership’s distribution coverage increased to $1.23x from 1.12x in the year-ago quarter.
Balance Sheet
As of Jun 30, 2018, Energy Transfer Partners had a long-term debt (less current maturities) of $33,741 million. The debt-to-capitalization ratio of the company was about 49.8%.
Zacks Rank and Key Picks
Currently, Energy Transfer Partners carries a Zacks Rank #3 (Hold).
Meanwhile, one can opt for some better-ranked energy players like Bonanza Creek Energy, Inc. , Carrizo Oil & Gas, Inc. and Murphy Oil Corporation (MUR - Free Report) . While Bonanza Creek sports a Zacks Rank #1 (Strong Buy), Carrizo and Murphy Oil both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bonanza Creek surpassed earnings estimates in three out of the last four quarters, with an average of 74.88%.
Carrizo topped estimates in each of the trailing four quarters, delivering a positive earnings surprise of 26.11%.
Murphy Oil delivered an average positive earnings surprise of 96.50% in the trailing four quarters.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>