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Plains All American (PAA) Q4 Earnings & Sales Miss Estimates
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Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2022 adjusted earnings of 33 cents per unit, which lagged the Zacks Consensus Estimate of 35 cents by 5.7%. The bottom line improved by 32% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 30 cents per unit compared with 56 cents in the year-ago period.
In 2022, adjusted earnings per unit were $1.26, up 33% year over year from 95 cents reported in 2021.
Total Revenues
Total revenues of $12,952 million lagged the Zacks Consensus Estimate of $14,385 million by 9.9%. The top line also marginally lagged from the year-ago quarter’s revenue of $12,989 million.
In 2022, total revenues was $57,342 million, up 36.3% year over year from $42,078 million reported in 2021.
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 $12,989 million, up 4.8% year over year. The increase was primarily due to higher purchases and related costs and an increase in field operating costs.
Total adjusted EBITDA for the quarter was $659 million, up 16.8% from the year-ago period.
In 2022, Crude Oil pipeline tariff volume was 7,565 thousand barrels per day (Mbls/d), up 219% year-over-year.
Net interest expenses were $96 million, down 4% from the year-ago quarter. The firm reduced its long-term debt level by nearly $1.11 billion in 2022, which resulted in lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $504 million compared with $423 million in the year-ago quarter, up 19.2% year over year. The NGL Segment’s adjusted EBITDA was $151 million compared with $141 million in the year-ago quarter, up 7.1% year over year.
Financial Update
As of Dec 31, 2022, cash and cash equivalents were $401 million compared with $449 million as of Dec 31, 2021.
As of Dec 31, 2022, Plains All American had total long-term debt of $7,287 million compared with $8,398 million as of Dec 31, 2021.
As of the same date, its long-term debt-to-total book capitalization was 42%, down from 46% as of Dec 31, 2021.
Guidance
For 2023, Plains All American expects adjusted EBITDA in the range of $2,450-$2,550 million. The free cash flow for 2023 is expected to be $1,600 million, while free cash flow after distribution is expected to be $600 million.
Plains All American expects Crude pipeline volumes to average 8,570 Mbls/d in 2023. The firm plans to invest $625 million in 2023 to strengthen operations.
Enterprise Products Partners L.P. (EPD - Free Report) reported fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents, beating the Zacks Consensus Estimate of 60 cents by 8.3%.
The Zacks Consensus Estimate for Enterprise Products Partners’ earnings per unit for first-quarter 2023 is 60 cents, which is on par with the year-ago quarter level. The firm reported an earnings surprise of 7.2% in the last four quarters, on average.
Magellan Midstream Partners, L.P. reported fourth-quarter 2022 adjusted earnings per limited partner unit of $1.06, lagging the Zacks Consensus Estimate of $1.31 by 19.1%.
The Zacks Consensus Estimate for Magellan Midstream Partners’ earnings per unit for first-quarter 2023 is $1.20 reflecting year-over-year growth of 11.11%. The firm reported an earnings surprise of 2.2% in the trailing four quarters, on average.
NuStar Energy reported fourth-quarter adjusted earnings per unit of 34 cents, which surpassed the Zacks Consensus Estimate of 27 cents by 25.9%.
The Zacks Consensus Estimate for NuStar Energy’s earnings per share for first-quarter 2023 is 17 cents, reflecting a year-over-year decline of 10.5%. The company’s current dividend yield is 9.57%, better than the industry’s yield of 7.96%.
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Plains All American (PAA) Q4 Earnings & Sales Miss Estimates
Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2022 adjusted earnings of 33 cents per unit, which lagged the Zacks Consensus Estimate of 35 cents by 5.7%. The bottom line improved by 32% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 30 cents per unit compared with 56 cents in the year-ago period.
In 2022, adjusted earnings per unit were $1.26, up 33% year over year from 95 cents reported in 2021.
Total Revenues
Total revenues of $12,952 million lagged the Zacks Consensus Estimate of $14,385 million by 9.9%. The top line also marginally lagged from the year-ago quarter’s revenue of $12,989 million.
In 2022, total revenues was $57,342 million, up 36.3% year over year from $42,078 million reported in 2021.
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 $12,989 million, up 4.8% year over year. The increase was primarily due to higher purchases and related costs and an increase in field operating costs.
Total adjusted EBITDA for the quarter was $659 million, up 16.8% from the year-ago period.
In 2022, Crude Oil pipeline tariff volume was 7,565 thousand barrels per day (Mbls/d), up 219% year-over-year.
Net interest expenses were $96 million, down 4% from the year-ago quarter. The firm reduced its long-term debt level by nearly $1.11 billion in 2022, which resulted in lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $504 million compared with $423 million in the year-ago quarter, up 19.2% year over year. The NGL Segment’s adjusted EBITDA was $151 million compared with $141 million in the year-ago quarter, up 7.1% year over year.
Financial Update
As of Dec 31, 2022, cash and cash equivalents were $401 million compared with $449 million as of Dec 31, 2021.
As of Dec 31, 2022, Plains All American had total long-term debt of $7,287 million compared with $8,398 million as of Dec 31, 2021.
As of the same date, its long-term debt-to-total book capitalization was 42%, down from 46% as of Dec 31, 2021.
Guidance
For 2023, Plains All American expects adjusted EBITDA in the range of $2,450-$2,550 million. The free cash flow for 2023 is expected to be $1,600 million, while free cash flow after distribution is expected to be $600 million.
Plains All American expects Crude pipeline volumes to average 8,570 Mbls/d in 2023. The firm plans to invest $625 million in 2023 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
Enterprise Products Partners L.P. (EPD - Free Report) reported fourth-quarter 2022 adjusted earnings per limited partner unit of 65 cents, beating the Zacks Consensus Estimate of 60 cents by 8.3%.
The Zacks Consensus Estimate for Enterprise Products Partners’ earnings per unit for first-quarter 2023 is 60 cents, which is on par with the year-ago quarter level. The firm reported an earnings surprise of 7.2% in the last four quarters, on average.
Magellan Midstream Partners, L.P. reported fourth-quarter 2022 adjusted earnings per limited partner unit of $1.06, lagging the Zacks Consensus Estimate of $1.31 by 19.1%.
The Zacks Consensus Estimate for Magellan Midstream Partners’ earnings per unit for first-quarter 2023 is $1.20 reflecting year-over-year growth of 11.11%. The firm reported an earnings surprise of 2.2% in the trailing four quarters, on average.
NuStar Energy reported fourth-quarter adjusted earnings per unit of 34 cents, which surpassed the Zacks Consensus Estimate of 27 cents by 25.9%.
The Zacks Consensus Estimate for NuStar Energy’s earnings per share for first-quarter 2023 is 17 cents, reflecting a year-over-year decline of 10.5%. The company’s current dividend yield is 9.57%, better than the industry’s yield of 7.96%.