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Phillips 66 Partners LP (PSXP) Up 4.2% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Phillips 66 Partners LP (PSXP - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Phillips 66 Partners LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Phillips 66 Partners Q2 Earnings Miss Estimates

Phillips 66 Partners reported second-quarter adjusted 2021 earnings per unit of 91 cents, missing the Zacks Consensus Estimate by a penny and declining from the year-ago quarter’s profit of $1.05.

Revenues of $423 million decreased from $430 million in the year-ago quarter but beat the Zacks Consensus Estimate of $391 million.

Operating Information

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

Pipelines: In second-quarter 2021, the partnership generated revenues of $121 million, up from $97 million in the prior-year period. An increase in pipeline volumes of crude oil and refined petroleum products & NGL aided the segment.

Pipeline volumes of 1,986 thousand barrels per day (Mbpd) rose from the year-ago 1,631 Mbpd. Average pipeline revenues of 66 cents per barrel increased marginally from 65 cents in the year-ago quarter.

Terminals: The partnership generated $43 million revenues, up from $33 million in the year-ago quarter, primarily due to higher throughput volumes of refined petroleum products and crude oil. Terminal throughput volumes came in at 1,224 Mbpd, up from the year-ago period’s 1,070 Mbpd.

Average terminaling revenue per barrel was 38 cents for the quarter versus 33 cents in the year-ago period.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $116 million, up from $111 million in the year-ago quarter.

Costs & Expenses

For the June quarter of 2021, the partnership reported operating and maintenance expenses of $93 million, up from $84 million in the year-ago period. Total costs and expenses increased to $188 million for second-quarter 2021 from the year-ago $175 million.

Balance Sheet & Capex

As of Jun 30, 2021, the partnership recorded cash and cash equivalents of $2 million. Total debt at the end of the quarter under review was $3,910 million. It has $734 million available under the revolving credit facility.

Capital expenditure and investment in the second quarter totaled $61 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Phillips 66 Partners LP has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Phillips 66 Partners LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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