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Energy Transfer (ET) to Report Q1 Earnings: What's in Store?

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Energy Transfer LP (ET - Free Report) is scheduled to release first-quarter 2021 results on May 6. In the last reported quarter, this oil and gas midstream firm delivered a negative earnings surprise of 26.9%.

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

Factors to Note

Energy Transfer has a diverse business model, and its assets are strategically located and spread across every major production basin. The firm is likely to have benefited from the transportation of more commodities through its assets, as hydrocarbon production is gradually increasing with improving economic conditions.

The firm’s first-quarter earnings are likely to have benefited predominantly from fee-based contracts with drillers. Energy Transfer’s first-quarter earnings are also expected to have gained from the completion of Marcus Hook and Nederland Terminal expansions, which brought total NGL export capacity of the firm to more than 1 million barrels per day.

Expectation

The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 26 cents per unit and $10.66 billion, respectively. The revenue estimate indicates a decline of 8.3%, while the earnings estimate suggests an increase of 44.4% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model doesn’t 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. That is not the case here as you see below.

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 +26.58%. 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 #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Cimarex Energy Co. is slated to release first-quarter 2021 numbers on May 5. It has an Earnings ESP of +10.42% and a Zacks Rank #3.

Whiting Petroleum Corporation is slated to release first-quarter 2021 numbers on May 6. It has an Earnings ESP of +6.90% and sports a Zacks Rank #1.

EOG Resources (EOG - Free Report) is set to release first-quarter earnings on May 7. It has an Earnings ESP of +2.78% and a Zacks Rank #3.

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