Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2016 adjusted loss of 12 cents per unit while the Zacks Consensus Estimate was earnings of 3 cents.
On a GAAP basis, loss per unit was 20 cents compared with 6 cents a year ago.
Total Revenue
In the second quarter, the partnership reported total revenue of $4,950 million, which beat the Zacks Consensus Estimate of $4,592 million by 7.8%.
However, revenues plunged around 25.7% year over year primarily due to lower contribution from the Supply & Logistics (26.8%) segment.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $4,804 million, down 25.5% year over year primarily due to lower purchases and related costs, field operating costs, and general and administrative expenses.
The partnership’s operating income plummeted 30.8% to $146 million from $211 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $461 million in the second quarter, down 5.1% year over year.
Interest expenses increased 6.5% to $114 million from $107 million a year ago.
Financial Update
Current assets as of Jun 30, 2016, were $3,603 million compared with $2,969 million as of Dec 31, 2015.
As of Jun 30, 2016, Plains All American had long-term debt of $9,486 million, compared with $10,375 million as of Dec 31, 2015. The long-term, debt-to-total book capitalization ratio at the end of the quarter was 51%, down from 57% at 2015 end.
Guidance
Plains All American issued third-quarter 2016 and full-year adjusted net income guidance in the range of $237–$299 million and $1,036–$1,160 million, respectively.
Plains All American expects third-quarter 2016 EBITDA in the range of $450 million to $500 million. The partnership raised its 2016 guidance for adjusted EBITDA to the range of $2,125 million to $2,225 million from an earlier range of $2,100 million to $2,250 million.
The partnership also provided 2016 expansion capital expenditure guidance in the $1,350–$1,500 million band. It projects maintenance capital expenditure in the range of $180–$200 million.
Peer Releases
PBF Logistics LP reported second-quarter 2016 earnings of 76 cents, beating the Zacks Consensus Estimate of 51 cents by 49%.
Boardwalk Pipeline Partners, LP’s second-quarter 2016 earnings of 26 cents beat the Zacks Consensus Estimate of 18 cents by 44.44%.
ONEOK Partners, L.P. reported second-quarter 2016 earnings of 54 cents per unit, beating the Zacks Consensus Estimate of 53 cents by 1.9%.
Zacks Rank
Plains All American currently holds a Zacks Rank #3 (Hold).
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Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2016 adjusted loss of 12 cents per unit while the Zacks Consensus Estimate was earnings of 3 cents.
On a GAAP basis, loss per unit was 20 cents compared with 6 cents a year ago.
Total Revenue
In the second quarter, the partnership reported total revenue of $4,950 million, which beat the Zacks Consensus Estimate of $4,592 million by 7.8%.
However, revenues plunged around 25.7% year over year primarily due to lower contribution from the Supply & Logistics (26.8%) segment.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $4,804 million, down 25.5% year over year primarily due to lower purchases and related costs, field operating costs, and general and administrative expenses.
The partnership’s operating income plummeted 30.8% to $146 million from $211 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $461 million in the second quarter, down 5.1% year over year.
Interest expenses increased 6.5% to $114 million from $107 million a year ago.
Financial Update
Current assets as of Jun 30, 2016, were $3,603 million compared with $2,969 million as of Dec 31, 2015.
As of Jun 30, 2016, Plains All American had long-term debt of $9,486 million, compared with $10,375 million as of Dec 31, 2015. The long-term, debt-to-total book capitalization ratio at the end of the quarter was 51%, down from 57% at 2015 end.
Guidance
Plains All American issued third-quarter 2016 and full-year adjusted net income guidance in the range of $237–$299 million and $1,036–$1,160 million, respectively.
Plains All American expects third-quarter 2016 EBITDA in the range of $450 million to $500 million. The partnership raised its 2016 guidance for adjusted EBITDA to the range of $2,125 million to $2,225 million from an earlier range of $2,100 million to $2,250 million.
The partnership also provided 2016 expansion capital expenditure guidance in the $1,350–$1,500 million band. It projects maintenance capital expenditure in the range of $180–$200 million.
Peer Releases
PBF Logistics LP reported second-quarter 2016 earnings of 76 cents, beating the Zacks Consensus Estimate of 51 cents by 49%.
Boardwalk Pipeline Partners, LP’s second-quarter 2016 earnings of 26 cents beat the Zacks Consensus Estimate of 18 cents by 44.44%.
ONEOK Partners, L.P. reported second-quarter 2016 earnings of 54 cents per unit, beating the Zacks Consensus Estimate of 53 cents by 1.9%.
Zacks Rank
Plains All American currently holds a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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