Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2017 adjusted earnings of 21 cents per unit, missing the Zacks Consensus Estimate of 26 cents by 19.2%. The partnership reported loss of 20 cents per unit in the year-ago quarter.
Total Revenue
In the second quarter, the partnership reported total revenue of $ 6,078 million, which missed the Zacks Consensus Estimate of $6,318 million by 3.8%.
However, quarterly revenues were up 28.8% from $4,950 million in the year-ago quarter.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,821 million, up 21.2% year over year from $4,804 million primarily due to higher purchases and related costs.
The partnership’s operating income increased 75.3% to $257 million from $146 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $451 million in the second quarter, down 4.9%. The Supply & Logistics segment was a major drag, dropping 172% year on year. This negative impact was partially offset by the higher contribution from Transportation (up 9%) and Facilities (up 12%).
Interest expenses increased 11.4% to $127 million from $114 million a year ago.
Financial Update
Current assets as of Jun 30 were $3,528 million, compared with $4,272 million as of Dec 31, 2016.
As of Jun 30, Plains All American had long-term debt of $10,040 million, compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio at the end of the quarter, including short-term debt was 52%, down from 57% at the end of 2016.
Guidance
Plains All American revised 2017 full-year adjusted EBITDA guidance of $2,075 million from a prior adjusted guidance of $2,260 million.
The partnership revised 2017 expansion capital expenditure projection of $950 million from a prior projection of $900 million. Maintenance capital expenditure guidance of $210 million was revised from a prior guidance of $195 million.
Peer Performance
Among other players from the industry that have reported their second-quarter earnings, Archrock Partners, L.P. , Cone Midstream Partners LP and Enbridge Energy, L.P. have surpassed the Zacks Consensus Estimate.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2017 adjusted earnings of 21 cents per unit, missing the Zacks Consensus Estimate of 26 cents by 19.2%. The partnership reported loss of 20 cents per unit in the year-ago quarter.
Total Revenue
In the second quarter, the partnership reported total revenue of $ 6,078 million, which missed the Zacks Consensus Estimate of $6,318 million by 3.8%.
However, quarterly revenues were up 28.8% from $4,950 million in the year-ago quarter.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,821 million, up 21.2% year over year from $4,804 million primarily due to higher purchases and related costs.
The partnership’s operating income increased 75.3% to $257 million from $146 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $451 million in the second quarter, down 4.9%. The Supply & Logistics segment was a major drag, dropping 172% year on year. This negative impact was partially offset by the higher contribution from Transportation (up 9%) and Facilities (up 12%).
Interest expenses increased 11.4% to $127 million from $114 million a year ago.
Financial Update
Current assets as of Jun 30 were $3,528 million, compared with $4,272 million as of Dec 31, 2016.
As of Jun 30, Plains All American had long-term debt of $10,040 million, compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio at the end of the quarter, including short-term debt was 52%, down from 57% at the end of 2016.
Guidance
Plains All American revised 2017 full-year adjusted EBITDA guidance of $2,075 million from a prior adjusted guidance of $2,260 million.
The partnership revised 2017 expansion capital expenditure projection of $950 million from a prior projection of $900 million. Maintenance capital expenditure guidance of $210 million was revised from a prior guidance of $195 million.
Peer Performance
Among other players from the industry that have reported their second-quarter earnings, Archrock Partners, L.P. , Cone Midstream Partners LP and Enbridge Energy, L.P. have surpassed the Zacks Consensus Estimate.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
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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