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.
Crestwood (CEQP) Q2 Earnings Miss Estimates, Revenues Beat
Read MoreHide Full Article
Crestwood Equity Partners LP reported second-quarter 2022 adjusted earnings of 14 cents per unit, missing the Zacks Consensus Estimate of 16 cents per share. The bottom line fared better than the year-ago adjusted loss of 49 cents per unit.
Total quarterly revenues surged to $1,448 million from $929.6 million in the prior-year quarter. Further, the top line beat the Zacks Consensus Estimate of $1,350 million.
Lower-than-expected quarterly earnings can be attributed to higher operating expenses. The negatives were partially offset by higher gas gathering and processing volumes.
Crestwood Equity Partners LP Price, Consensus and EPS Surprise
Gathering and Processing North: The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $152.7 million, up from $103.6 million in the year-ago quarter. Operating and maintenance expenses increased to $27.5 million from the year-ago level of $9 million.
Total gas gathering volumes for the quarter were 348.6 million cubic feet per day (MMcf/d), up from 241.4 MMcf/d a year ago. Gathering volumes increased in the Williston and Powder River Basins. Total processing volumes increased to 372.4 MMcf/d from the year-ago level of 233.2 MMcf/d.
Gathering and Processing South: The segment generated an EBITDA of $24.8 million, up from $19.9 million in the year-ago quarter. Operating and maintenance expenses increased to $7.6 million from the year-ago level of $5.7 million.
Total gas gathering volumes for the quarter were 691 MMcf/d, up from 660.8 MMcf/d a year ago. Gathering volumes declined in Marcellus, while the same rose in Delaware and Barnett Shale. Total processing volumes increased to 220.2 MMcf/d from the year-ago level of 144.4 MMcf/d. Yet, compression volumes declined to 218.4 MMcf/d from 249.1 MMcf/d in the year-ago period.
Storage and Logistics: It generated earnings of $9.5 million, turning around from a loss of $43.7 million in the year-ago quarter. Operating and maintenance expenses of $11.5 million increased from the year-ago quarter’s $11.1 million.
NGL volumes sold or processed in the second quarter were 116 MBbls/d, up from 114 MBbls/d in the year-ago period.
Expenses
Total operating expenses and others increased to $160.9 million from $107.1 million in the year-ago period.
General and administrative expenses increased to $26.5 million in the June-end quarter from $22.8 million in second-quarter 2021. Also, operation and maintenance costs increased to $46.6 million from $25.8 million a year ago.
Cash Flow
Distributable cash flow in the second quarter was $108.1 million, up from $85.8 million in the year-ago period.
Free cash flow after distributions was $1.3 million for the June-end quarter, down from $40.1 million in the year-ago period.
Balance Sheet
As of Jun 30, 2022, the partnership had $13.8 million in cash, up from $11.9 million at the first-quarter end. Total debt of $2,929.5 million at the second-quarter end increased from $2,810.1 million at the first-quarter end.
Outlook
For 2022, Crestwood revised its adjusted EBITDA guidance upward to $800-$840 million from $780-$840 million mentioned earlier. The partnership expects a free cash flow after paying distributions of $5-$45 million.
The Zacks Rank #5 (Strong Sell) company expects capital spending related to growth projects of $220-$240 million for the year. Maintenance capital spending is anticipated to be $30-$35 million.
Valero Energy Corporation (VLO - Free Report) reported second-quarter 2022 adjusted earnings of $11.36 per share, comfortably beating the Zacks Consensus Estimate of $9.7 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. Valero is expected to see earnings growth of 774% in 2022.
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. Shell is expected to see earnings growth of 124.7% in 2022.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Crestwood (CEQP) Q2 Earnings Miss Estimates, Revenues Beat
Crestwood Equity Partners LP reported second-quarter 2022 adjusted earnings of 14 cents per unit, missing the Zacks Consensus Estimate of 16 cents per share. The bottom line fared better than the year-ago adjusted loss of 49 cents per unit.
Total quarterly revenues surged to $1,448 million from $929.6 million in the prior-year quarter. Further, the top line beat the Zacks Consensus Estimate of $1,350 million.
Lower-than-expected quarterly earnings can be attributed to higher operating expenses. The negatives were partially offset by higher gas gathering and processing volumes.
Crestwood Equity Partners LP Price, Consensus and EPS Surprise
Crestwood Equity Partners LP price-consensus-eps-surprise-chart | Crestwood Equity Partners LP Quote
Segmental Performance
Gathering and Processing North: The segment generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $152.7 million, up from $103.6 million in the year-ago quarter. Operating and maintenance expenses increased to $27.5 million from the year-ago level of $9 million.
Total gas gathering volumes for the quarter were 348.6 million cubic feet per day (MMcf/d), up from 241.4 MMcf/d a year ago. Gathering volumes increased in the Williston and Powder River Basins. Total processing volumes increased to 372.4 MMcf/d from the year-ago level of 233.2 MMcf/d.
Gathering and Processing South: The segment generated an EBITDA of $24.8 million, up from $19.9 million in the year-ago quarter. Operating and maintenance expenses increased to $7.6 million from the year-ago level of $5.7 million.
Total gas gathering volumes for the quarter were 691 MMcf/d, up from 660.8 MMcf/d a year ago. Gathering volumes declined in Marcellus, while the same rose in Delaware and Barnett Shale. Total processing volumes increased to 220.2 MMcf/d from the year-ago level of 144.4 MMcf/d. Yet, compression volumes declined to 218.4 MMcf/d from 249.1 MMcf/d in the year-ago period.
Storage and Logistics: It generated earnings of $9.5 million, turning around from a loss of $43.7 million in the year-ago quarter. Operating and maintenance expenses of $11.5 million increased from the year-ago quarter’s $11.1 million.
NGL volumes sold or processed in the second quarter were 116 MBbls/d, up from 114 MBbls/d in the year-ago period.
Expenses
Total operating expenses and others increased to $160.9 million from $107.1 million in the year-ago period.
General and administrative expenses increased to $26.5 million in the June-end quarter from $22.8 million in second-quarter 2021. Also, operation and maintenance costs increased to $46.6 million from $25.8 million a year ago.
Cash Flow
Distributable cash flow in the second quarter was $108.1 million, up from $85.8 million in the year-ago period.
Free cash flow after distributions was $1.3 million for the June-end quarter, down from $40.1 million in the year-ago period.
Balance Sheet
As of Jun 30, 2022, the partnership had $13.8 million in cash, up from $11.9 million at the first-quarter end. Total debt of $2,929.5 million at the second-quarter end increased from $2,810.1 million at the first-quarter end.
Outlook
For 2022, Crestwood revised its adjusted EBITDA guidance upward to $800-$840 million from $780-$840 million mentioned earlier. The partnership expects a free cash flow after paying distributions of $5-$45 million.
The Zacks Rank #5 (Strong Sell) company expects capital spending related to growth projects of $220-$240 million for the year. Maintenance capital spending is anticipated to be $30-$35 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Other Energy Players
Valero Energy Corporation (VLO - Free Report) reported second-quarter 2022 adjusted earnings of $11.36 per share, comfortably beating the Zacks Consensus Estimate of $9.7 per share. The strong quarterly results were driven by increased refinery throughput volumes and a higher refining margin.
Valero has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. Valero is expected to see earnings growth of 774% in 2022.
Hess Corporation (HES - Free Report) reported second-quarter 2022 earnings per share of $2.15, beating the Zacks Consensus Estimate of $2.07. The strong quarterly results were driven by higher realizations of commodity prices.
Hess has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of B for Growth and Momentum. Hess is expected to see earnings growth of 329.2% in 2022.
Shell plc (SHEL - Free Report) reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $3.06. The bottom line beat the Zacks Consensus Estimate of $2.91 due to stronger commodity prices and refining margins.
Shell has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. Shell is expected to see earnings growth of 124.7% in 2022.