We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plains All American (PAA) Q1 Earnings Miss, Revenues Beat
Read MoreHide Full Article
Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2022 adjusted earnings of 31 cents per unit, which lagged the Zacks Consensus Estimate of 37 cents by 16.2%. The bottom line improved 24% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 19 cents per unit compared with 51 cents in the year-ago period.
Total Revenues
Total revenues of $13,694 million surpassed the Zacks Consensus Estimate of $11,668 million by 17.4%. The top line improved 63.2% from $8,393 million reported a year ago. Strong performance of its Crude Oil and Natural Gas Liquids (“NGL”) segment boosted the top line.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
For the quarter under review, Plains All American’s total costs and expenses were $13,401 million, up 70.6% year over year. This increase was primarily due to higher purchases and related costs.
Total adjusted EBITDA for the quarter was $614 million, up 13.1% from the year-ago period.
During the quarter, Crude Oil volumes were 7,159 thousand barrels per day (Mbls/d) and NGL sales volume was 168 Mbls/d.
Net interest expenses were $107 million, flat with the year-ago quarter.
The firm reduced its long-term debt level by $412 million during first-quarter 2022, which will lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $453 million compared with $474 million in the year-ago quarter. The performance of this segment was impacted by the sale of its natural gas storage facilities in August of 2021 and gains related to hedged power costs resulting from Winter Storm Uri, recognized in the first quarter of 2021.
The NGL Segment’s adjusted EBITDA was $161 million compared with $69 million in the year-ago quarter. The performance of this segment was driven by the favorable impact of higher realized fractionation spreads and higher NGL sales prices, partially offset by lower NGL sales volumes.
Financial Update
As of Mar 31, 2022, current assets were $8,097 million compared with $6,137 million as of Dec 31, 2021.
As of Mar 31, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. Free cash flow was $200 million compared with $678 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 44%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American now expects 2022 adjusted EBITDA to be $2,275 million, up from the previous expectation of $2,200 million. Free cash flow for 2022 is expected to be $1,250 million.
Plains All Pipeline expects Crude pipeline volumes to average 7,330 Mbls/d (up from previous guidance of 7,150 Mbls/d) and NGL sales volume to be 140 Mbls/d in 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold).
Delek Logistics Partners L.P. (DKL - Free Report) reported first-quarter 2022 adjusted earnings per limited partner unit of 91 cents, beating the Zacks Consensus Estimate of 89 cents by 2.3%.
The Zacks Consensus Estimate for Delek Logistics Partners’ total revenues and earnings per unit for 2022 has moved up 19.7% and 28.8% year over year, respectively. DKL’s revenue and earnings per unit estimates for 2023 suggest an 18.7% and 43.4% year-over-year increase, respectively.
Energy Transfer LP (ET - Free Report) reported first-quarter 2022 adjusted earnings per limited partner unit of 37 cents, beating the Zacks Consensus Estimate of 31 cents by 19.3%.
The Zacks Consensus Estimate for Energy Transfer’s total revenues and earnings per unit for 2023 has moved up 0.7% and 9.6% year over year, respectively.
ONEOK Inc. (OKE - Free Report) reported first-quarter 2022 adjusted earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 89 cents by 2.3%.
The Zacks Consensus Estimate for ONEOK’s total revenues and earnings per share for 2022 has moved up 48.6% and 15.2% year over year, respectively.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Plains All American (PAA) Q1 Earnings Miss, Revenues Beat
Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2022 adjusted earnings of 31 cents per unit, which lagged the Zacks Consensus Estimate of 37 cents by 16.2%. The bottom line improved 24% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 19 cents per unit compared with 51 cents in the year-ago period.
Total Revenues
Total revenues of $13,694 million surpassed the Zacks Consensus Estimate of $11,668 million by 17.4%. The top line improved 63.2% from $8,393 million reported a year ago. Strong performance of its Crude Oil and Natural Gas Liquids (“NGL”) segment boosted the top line.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote
Highlights of the Release
For the quarter under review, Plains All American’s total costs and expenses were $13,401 million, up 70.6% year over year. This increase was primarily due to higher purchases and related costs.
Total adjusted EBITDA for the quarter was $614 million, up 13.1% from the year-ago period.
During the quarter, Crude Oil volumes were 7,159 thousand barrels per day (Mbls/d) and NGL sales volume was 168 Mbls/d.
Net interest expenses were $107 million, flat with the year-ago quarter.
The firm reduced its long-term debt level by $412 million during first-quarter 2022, which will lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $453 million compared with $474 million in the year-ago quarter. The performance of this segment was impacted by the sale of its natural gas storage facilities in August of 2021 and gains related to hedged power costs resulting from Winter Storm Uri, recognized in the first quarter of 2021.
The NGL Segment’s adjusted EBITDA was $161 million compared with $69 million in the year-ago quarter. The performance of this segment was driven by the favorable impact of higher realized fractionation spreads and higher NGL sales prices, partially offset by lower NGL sales volumes.
Financial Update
As of Mar 31, 2022, current assets were $8,097 million compared with $6,137 million as of Dec 31, 2021.
As of Mar 31, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. Free cash flow was $200 million compared with $678 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 44%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American now expects 2022 adjusted EBITDA to be $2,275 million, up from the previous expectation of $2,200 million. Free cash flow for 2022 is expected to be $1,250 million.
Plains All Pipeline expects Crude pipeline volumes to average 7,330 Mbls/d (up from previous guidance of 7,150 Mbls/d) and NGL sales volume to be 140 Mbls/d in 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Delek Logistics Partners L.P. (DKL - Free Report) reported first-quarter 2022 adjusted earnings per limited partner unit of 91 cents, beating the Zacks Consensus Estimate of 89 cents by 2.3%.
The Zacks Consensus Estimate for Delek Logistics Partners’ total revenues and earnings per unit for 2022 has moved up 19.7% and 28.8% year over year, respectively. DKL’s revenue and earnings per unit estimates for 2023 suggest an 18.7% and 43.4% year-over-year increase, respectively.
Energy Transfer LP (ET - Free Report) reported first-quarter 2022 adjusted earnings per limited partner unit of 37 cents, beating the Zacks Consensus Estimate of 31 cents by 19.3%.
The Zacks Consensus Estimate for Energy Transfer’s total revenues and earnings per unit for 2023 has moved up 0.7% and 9.6% year over year, respectively.
ONEOK Inc. (OKE - Free Report) reported first-quarter 2022 adjusted earnings per share of 87 cents, which missed the Zacks Consensus Estimate of 89 cents by 2.3%.
The Zacks Consensus Estimate for ONEOK’s total revenues and earnings per share for 2022 has moved up 48.6% and 15.2% year over year, respectively.