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Energy Transfer (ET) to Post Q3 Earnings: Here's What to Expect
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Energy Transfer LP (ET - Free Report) is scheduled to release third-quarter 2023 results on Nov 1, after market close. The firm delivered a negative earnings surprise of 16.7% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
Energy Transfer’s third-quarter earnings are likely to have benefited from stable demand from a strong customer base and fee-based contracts. The firm continues to expand Midstream operations through the inorganic route, which is likely to have contributed to ET’s third-quarter earnings.
Midstream gathered volumes, Natural Gas Liquids (NGL) transportation and fractionation volumes continue to remain strong. Frac 8 went into service in August 2023, bringing ET’s total fractionation capacity at Mont Belvieu to more than 1.15 MMbbls/d. These strong volumes are expected to have benefited the firm’s quarterly performance.
Energy Transfer’s third-quarter earnings are likely to have been boosted due to the acquisition of Lotus Midstream Operations LLC assets that was completed during the second quarter. The buyout expanded the firm’s operations in the Permian Basin and provided increased connectivity for its crude oil transportation and storage businesses.
Q3 Expectations
The Zacks Consensus Estimate for earnings is pegged at 29 cents per unit, implying a year-over-year decline of 3.3%. The consensus mark for revenues is pinned at $21.68 billion, indicating a year-over-year deterioration of 5.5%.
The Zacks Consensus Estimate for Midstream gathered volumes is pinned at 20,051 BBtu/d, up 4.9% year over year. The Zacks Consensus Estimate for Midstream NGL produced is pegged at 839 MBbls/d, up 3.1% from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
DT Midstream, Inc. (DTM - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 1, before market open. It has an Earnings ESP of +2.45% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for DTM’s third-quarter earnings is pegged at 90 cents per share. The consensus estimate for 2023 earnings is pegged at $3.59 per share.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 3, before market open. It has an Earnings ESP of +19.15% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s third-quarter earnings is pegged at 24 cents per unit. It delivered an average earnings surprise of 11.3% in the last four quarters.
Devon Energy (DVN - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 7, after market close. It has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
DVN’s long-term earnings growth rate is 51.35%. It delivered an average earnings surprise of 0.8% in the last four quarters.
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Energy Transfer (ET) to Post Q3 Earnings: Here's What to Expect
Energy Transfer LP (ET - Free Report) is scheduled to release third-quarter 2023 results on Nov 1, after market close. The firm delivered a negative earnings surprise of 16.7% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
Energy Transfer’s third-quarter earnings are likely to have benefited from stable demand from a strong customer base and fee-based contracts. The firm continues to expand Midstream operations through the inorganic route, which is likely to have contributed to ET’s third-quarter earnings.
Midstream gathered volumes, Natural Gas Liquids (NGL) transportation and fractionation volumes continue to remain strong. Frac 8 went into service in August 2023, bringing ET’s total fractionation capacity at Mont Belvieu to more than 1.15 MMbbls/d. These strong volumes are expected to have benefited the firm’s quarterly performance.
Energy Transfer’s third-quarter earnings are likely to have been boosted due to the acquisition of Lotus Midstream Operations LLC assets that was completed during the second quarter. The buyout expanded the firm’s operations in the Permian Basin and provided increased connectivity for its crude oil transportation and storage businesses.
Q3 Expectations
The Zacks Consensus Estimate for earnings is pegged at 29 cents per unit, implying a year-over-year decline of 3.3%. The consensus mark for revenues is pinned at $21.68 billion, indicating a year-over-year deterioration of 5.5%.
The Zacks Consensus Estimate for Midstream gathered volumes is pinned at 20,051 BBtu/d, up 4.9% year over year. The Zacks Consensus Estimate for Midstream NGL produced is pegged at 839 MBbls/d, up 3.1% from the prior-year quarter’s reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Energy Transfer LP Price and EPS Surprise
Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote
Earnings ESP: ET’s Earnings ESP is -6.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the firm carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
DT Midstream, Inc. (DTM - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 1, before market open. It has an Earnings ESP of +2.45% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for DTM’s third-quarter earnings is pegged at 90 cents per share. The consensus estimate for 2023 earnings is pegged at $3.59 per share.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 3, before market open. It has an Earnings ESP of +19.15% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s third-quarter earnings is pegged at 24 cents per unit. It delivered an average earnings surprise of 11.3% in the last four quarters.
Devon Energy (DVN - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 7, after market close. It has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
DVN’s long-term earnings growth rate is 51.35%. It delivered an average earnings surprise of 0.8% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.