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Energy Transfer (ET) to Post Q2 Earnings: What's in Store?
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Energy Transfer LP (ET - Free Report) is scheduled to release second-quarter 2021 results on Aug 3. In the last reported quarter, this oil and gas midstream firm delivered an earnings surprise of 338.5%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
Since Energy Transfer has a diverse business model, and its pipelines are strategically located and spread across every major production basin, a gradual increase in hydrocarbon production must have boosted the demand for its services and thereby earnings.
The firm’s second-quarter earnings are likely to have benefited predominantly from fee-based contracts with drillers. Energy Transfer’s second-quarter earnings are also expected to have gained from the completion of organic projects at the end of December 2020 and first-half 2021, which in turn increased pipeline transportation capacity.
Expectation
The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 24 cents per unit and $15.54 billion, respectively. Revenue and earnings per unit estimates indicate an increase of 111.7% and 84.6%, respectively, from the year-ago reported figures.
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.
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.
Select Energy Services, Inc. (WTTR - Free Report) is slated to release second-quarter 2021 numbers on Aug 4. It has an Earnings ESP of +4.35% and a Zacks Rank #3.
Targa Resources Corp. (TRGP - Free Report) is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +6.73% and a Zacks Rank #3.
Cimarex Energy is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +0.66% and a Zacks Rank #3.
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Energy Transfer (ET) to Post Q2 Earnings: What's in Store?
Energy Transfer LP (ET - Free Report) is scheduled to release second-quarter 2021 results on Aug 3. In the last reported quarter, this oil and gas midstream firm delivered an earnings surprise of 338.5%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
Since Energy Transfer has a diverse business model, and its pipelines are strategically located and spread across every major production basin, a gradual increase in hydrocarbon production must have boosted the demand for its services and thereby earnings.
The firm’s second-quarter earnings are likely to have benefited predominantly from fee-based contracts with drillers. Energy Transfer’s second-quarter earnings are also expected to have gained from the completion of organic projects at the end of December 2020 and first-half 2021, which in turn increased pipeline transportation capacity.
Expectation
The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 24 cents per unit and $15.54 billion, respectively. Revenue and earnings per unit estimates indicate an increase of 111.7% and 84.6%, respectively, from the year-ago reported figures.
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-eps-surprise | Energy Transfer LP Quote
Earnings ESP: It has an Earnings ESP of -17.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Energy Transfer sports a Zacks Rank #1.
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.
Select Energy Services, Inc. (WTTR - Free Report) is slated to release second-quarter 2021 numbers on Aug 4. It has an Earnings ESP of +4.35% and a Zacks Rank #3.
Targa Resources Corp. (TRGP - Free Report) is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +6.73% and a Zacks Rank #3.
Cimarex Energy is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +0.66% and a Zacks Rank #3.