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Crestwood (CEQP) Tops on Q4 Earnings, Gives 2023 EBITDA View
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Crestwood Equity Partners LP reported fourth-quarter 2022 adjusted earnings of 26 cents per unit, beating the Zacks Consensus Estimate of 20 cents. However, the bottom line declined from the year-ago quarter’s 79 cents per unit.
Total quarterly revenues surged to $1,403 million from $1,380 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,538 million.
Better-than-expected quarterly earnings were primarily driven by higher gas gathering and processing volumes. The positives were partially offset by a hike in operating expenses.
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 $140.8 million, up from $116.5 million in the year-ago quarter. Operating and maintenance expenses increased to $26.7 million from $12.9 million.
Total gas gathering volumes in the quarter were 349.0 million cubic feet per day (MMcf/d), up from 243.7 MMcf/d a year ago. Gathering volumes increased in the Williston Basin and the Powder River Basin. Total processing volumes increased to 378.9 MMcf/d from the year-ago level of 231.4 MMcf/d.
Gathering and Processing South: The segment of Crestwood generated earnings of $44 million, up from the $8.8 million reported in the year-ago quarter. Operating and maintenance expenses increased to $14.4 million from $5.5 million.
Total gas gathering volumes in the quarter were 707.5 MMcf/d, up from 700.1 MMcf/d a year ago. Gathering volumes declined in Marcellus, while the same rose in the Delaware Basin. Total processing volumes increased to 408.4 MMcf/d from the year-ago level of 188.6 MMcf/d.
Storage and Logistics: Crestwood generated earnings of $35.7 million, declining from $76.3 million in the year-ago quarter. Operating and maintenance expenses of $11 million declined from the year-ago quarter’s $12.4 million.
Expenses
Total operating expenses and others increased to $166.1 million from $142.6 million in the year-ago period.
Operation and maintenance costs increased to $52.1 million from $30.8 million a year ago. However, general and administrative expenses declined to $26.6 million in the December-end quarter from $30.2 million in fourth-quarter 2021.
Cash Flow
Distributable cash flow attributable to CEQP common in the fourth quarter was $110.8 million, up from $91.1 million in the year-ago period.
Free cash flow after distributions was a $23.8-million deficit in the December-end quarter against the $32.8 million reported in the year-ago period.
Balance Sheet
As of Dec 31, 2022, Crestwood had $7.5 million in cash. Total debt was $3,378.3 million at the fourth-quarter end.
Outlook
For 2023, Crestwood expects adjusted EBITDA of $780-$860 million, suggesting an improvement from the $762.1 million reported in 2022. The partnership expects a free cash flow after paying distributions of $10-$90 million.
The company expects capital spending related to growth projects of $135-$155 million for the year. Maintenance capital spending is anticipated to be $25-$30 million.
Zacks Rank & Stocks to Consider
Crestwood Equity currently carries a Zacks Rank #5 (Strong Sell).
PBF Energy Inc.’s (PBF - Free Report) fourth-quarter 2022 earnings of $4.41 per share missed the Zacks Consensus Estimate of earnings of $4.95. Quarterly earnings were primarily driven by lower contributions from the Logistics segment, and higher costs and expenses.
For 2023, PBF Energy’s total refining system throughput is expected to be 935,000-995,000 barrels per day. For the first quarter, the company anticipates throughput volumes of 845,000-905,000 barrels per day.
Sunoco LP’s (SUN - Free Report) fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
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Crestwood (CEQP) Tops on Q4 Earnings, Gives 2023 EBITDA View
Crestwood Equity Partners LP reported fourth-quarter 2022 adjusted earnings of 26 cents per unit, beating the Zacks Consensus Estimate of 20 cents. However, the bottom line declined from the year-ago quarter’s 79 cents per unit.
Total quarterly revenues surged to $1,403 million from $1,380 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,538 million.
Better-than-expected quarterly earnings were primarily driven by higher gas gathering and processing volumes. The positives were partially offset by a hike in operating expenses.
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 $140.8 million, up from $116.5 million in the year-ago quarter. Operating and maintenance expenses increased to $26.7 million from $12.9 million.
Total gas gathering volumes in the quarter were 349.0 million cubic feet per day (MMcf/d), up from 243.7 MMcf/d a year ago. Gathering volumes increased in the Williston Basin and the Powder River Basin. Total processing volumes increased to 378.9 MMcf/d from the year-ago level of 231.4 MMcf/d.
Gathering and Processing South: The segment of Crestwood generated earnings of $44 million, up from the $8.8 million reported in the year-ago quarter. Operating and maintenance expenses increased to $14.4 million from $5.5 million.
Total gas gathering volumes in the quarter were 707.5 MMcf/d, up from 700.1 MMcf/d a year ago. Gathering volumes declined in Marcellus, while the same rose in the Delaware Basin. Total processing volumes increased to 408.4 MMcf/d from the year-ago level of 188.6 MMcf/d.
Storage and Logistics: Crestwood generated earnings of $35.7 million, declining from $76.3 million in the year-ago quarter. Operating and maintenance expenses of $11 million declined from the year-ago quarter’s $12.4 million.
Expenses
Total operating expenses and others increased to $166.1 million from $142.6 million in the year-ago period.
Operation and maintenance costs increased to $52.1 million from $30.8 million a year ago. However, general and administrative expenses declined to $26.6 million in the December-end quarter from $30.2 million in fourth-quarter 2021.
Cash Flow
Distributable cash flow attributable to CEQP common in the fourth quarter was $110.8 million, up from $91.1 million in the year-ago period.
Free cash flow after distributions was a $23.8-million deficit in the December-end quarter against the $32.8 million reported in the year-ago period.
Balance Sheet
As of Dec 31, 2022, Crestwood had $7.5 million in cash. Total debt was $3,378.3 million at the fourth-quarter end.
Outlook
For 2023, Crestwood expects adjusted EBITDA of $780-$860 million, suggesting an improvement from the $762.1 million reported in 2022. The partnership expects a free cash flow after paying distributions of $10-$90 million.
The company expects capital spending related to growth projects of $135-$155 million for the year. Maintenance capital spending is anticipated to be $25-$30 million.
Zacks Rank & Stocks to Consider
Crestwood Equity currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF Energy Inc.’s (PBF - Free Report) fourth-quarter 2022 earnings of $4.41 per share missed the Zacks Consensus Estimate of earnings of $4.95. Quarterly earnings were primarily driven by lower contributions from the Logistics segment, and higher costs and expenses.
For 2023, PBF Energy’s total refining system throughput is expected to be 935,000-995,000 barrels per day. For the first quarter, the company anticipates throughput volumes of 845,000-905,000 barrels per day.
Sunoco LP’s (SUN - Free Report) fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s (RES - Free Report) adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.