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Energy Transfer Partners (ETP) Q1 Loss Narrows, Stock Up

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Natural gas pipeline operator Energy Transfer Partners LP reported first-quarter 2016 loss from continuing operations of 15 cents per limited partner unit, narrower than the year-ago quarter loss of 17 cents. The Zacks Consensus Estimate was pegged at a profit of 25 cents.

The year-over-year improvement in the bottom line was supported by a considerable reduction in total expenses. Following this, the partnership rose almost 9% on the NYSE. However, the positives were offset partially by lower contribution from midstream operations.

Quarterly revenues decreased more than 56% year over year to $4,481 million and widely missed the Zacks Consensus Estimate of $8,749 million.

Quarterly Cash Distribution

Last month, Energy Transfer Partners announced first-quarter distribution of $1.055 per unit ($4.22 per unit annualized), representing a year-over-year increase of 3.9%. The distribution remained unchanged from the prior quarter.

EBITDA & Operating Income  

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,412 million, up from $1,366 million a year ago.

The partnership reported operating income of $614 million, higher than $608 million in first-quarter 2015.    

Total Expense

Energy Transfer Partners reported total expenses of $3,867 million for first-quarter 2016, reflecting a year-over-year decline of 60%.

Distributable Cash Flow

Energy Transfer Partners’ distributable cash flow came in at $956 million, higher than the prior-year quarter level of $927 million.

Capital Expenditure

Maintenance capital expenditure totaled $59 million compared with $84 million in the first quarter of 2015.

Balance Sheet

As of Mar 31, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $26,769 million. Debt-to-capitalization ratio was about 50%.  

Zacks Rank & Other Stocks

Energy Transfer Partners currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are PetroChina Co. Ltd. (PTR - Free Report) , Braskem S.A. (BAK - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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