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Phillips 66 (PSXP) Q2 Earnings & Revenues Beat Estimates

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Phillips 66 Partners LP (PSXP - Free Report) reported second-quarter 2020 earnings per unit of $1.05, which beat the Zacks Consensus Estimate of 75 cents. However, earnings declined from $1.15 per unit in the year-ago quarter.

Revenues of $430 million increased from $401 million in the year-ago quarter and beat the Zacks Consensus Estimate of $367 million.

Phillips 66 Partners LP Price, Consensus and EPS Surprise

 

Phillips 66 Partners LP Price, Consensus and EPS Surprise

Phillips 66 Partners LP price-consensus-eps-surprise-chart | Phillips 66 Partners LP Quote

The better-than-expected results were owing to higher storage and processing activities, partially offset by lower pipeline volumes of crude oil and refined petroleum products and NGL.

Operating Information

The partnership provides services through Pipelines, Terminals and Storage Processing & Other activities.

Pipeline: In second-quarter 2020, the partnership generated revenues of $97 million, down from $117 million in the prior-year period. The drop was due to lower pipeline volumes of crude oil and refined petroleum products and NGL. Notably, average pipeline revenues of 65 cents per barrel increased from 64 cents in the year-ago quarter.

Terminals: The partnership generated $33 million revenues, down from $39 million in the year-ago quarter due to lower throughput volumes of refined petroleum products and crude oil.

Notably, average terminalling revenue per barrel was 33 cents in the quarter, flat with the year-ago quarter.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $111 million, up from $107 million in the year-ago quarter.

Costs & Expenses

In the June quarter of 2020, the partnership reported operating and maintenance expenses of $84 million, down from $85 million in the year-ago quarter. However, total costs and expenses increased to $175 million in second-quarter 2020 from the year-ago $167 million.

Balance Sheet & Capex

As of Jun 30, 2020, the partnership recorded cash and cash equivalents of $7 million, down from $92 million at the end of first-quarter 2020. Total debt at the end of the quarter under review was $3,707 million, up from $3,516 million in the March quarter. Notably, it has $532 million available under the revolving credit facility.

Capital expenditure and investment in the second quarter totaled $377 million.

Strategic Update & Outlook

Phillips 66 Partners hints at the possibility of a cut in capital expenditure if the court orders to shut the Dakota Access Pipeline.

Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Concho Resources Inc. , Noble Energy Inc. and EOG Resources, Inc. (EOG - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Concho is likely to see earnings growth of 21.6% in 2020.

Noble Energy has witnessed upward estimate revisions for its 2020 bottom line in the past 30 days. 

EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.

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