Back to top

Image: Bigstock

Energy Transfer (ET) to Report Q2 Earnings: What's in Store?

Read MoreHide Full Article

Energy Transfer LP (ET - Free Report) is scheduled to release second-quarter 2020 results on Aug 5. In the last reported quarter, this oil and gas midstream firm delivered a negative earnings surprise of 43.8%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

Given the unprecedented economic crisis, E&P operators lowered production in the second quarter in view of declining demand for commodities. Since Energy Transfer’s earnings are primarily supported by fee-based contracts, the drop in production resulted in lower volumes through pipelines. This in turn is expected to have adversely impacted earnings.

The firm placed a couple of projects in service during the first quarter, which is expected to have contributed to second-quarter earnings.

Expectation

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 2 cents per unit and $11.billion, respectively. The revenue and earnings estimates indicate a decline of 16.43% and 24.24%, respectively, from the year-ago reported figures.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote

Earnings ESP: It has an Earnings ESP of -10.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Energy Transfer carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider some players from the same sector that have the right combination of elements to beat on earnings this season.

MPLX LP (MPLX - Free Report) is scheduled to release second-quarter 2020 numbers on Aug 3. It has an Earnings ESP of +3.73% and a Zacks Rank #3, currently.

Plains All American Pipeline, L.P. (PAA - Free Report) is slated to release second-quarter 2020 numbers on Aug 4. It has an Earnings ESP of +12.92% and a Zacks Rank of 3, at present.

Rattler Midstream LP is set to release second-quarter earnings on Aug 5. It has an Earnings ESP of +4.50% and a Zacks Rank #3, at present.

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>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Plains All American Pipeline, L.P. (PAA) - free report >>

Energy Transfer LP (ET) - free report >>

MPLX LP (MPLX) - free report >>

Published in