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Energy Transfer (ETP) Misses on Q2 Earnings and Revenues

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Natural gas pipeline operator Energy Transfer Partners LP reported second-quarter 2016 earnings of 10 cents per limited partner unit, which missed the Zacks Consensus Estimate of 19 cents. The bottom line also decreased from the year-ago quarter profit of 67 cents.
 

Quarterly revenues plunged more than 54% year over year to $5,289 million and missed the Zacks Consensus Estimate of $5,520 million.  

Lower contribution from midstream businesses along with the deconsolidation of retail marketing primarily led to the underperformance.

Quarterly Cash Distribution

Last month, Energy Transfer Partners announced second-quarter distribution of $1.055 per unit ($4.22 per unit annualized), representing a year-over-year hike of 1.9%.   

EBITDA & Operating Income

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,370 million, down from $1,488 million a year ago.

The partnership reported operating income of $715 million, lower than $888 million in second-quarter 2015.

Total Expense

Energy Transfer Partners reported total expenses of $4,574 million for second-quarter 2016, reflecting a year-over-year decline of 57%.   

Distributable Cash Flow

Energy Transfer Partners’ distributable cash flow came in at $774 million, significantly lower than the prior-year quarter level of $957 million.

Capital Expenditure

Maintenance capital expenditure totaled $78 million compared with $100 million in the second quarter of 2015.

Balance Sheet

As of Jun 30, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $27,950 million. Debt-to-capitalization ratio was about 51.1%.  

ENERGY TRAN PTR Price, Consensus and EPS Surprise

Other News

On Aug 2, Energy Transfer Partners and Sunoco Logistics Partners LP signed an accord to divest 36.75% of the Bakken Pipeline project to MarEn Bakken Company LLC for a total consideration of $2 billion cash. It is to be noted that MarEn Bakken is jointly owned by Enbridge Energy Partners LP and Marathon Petroleum Corporation (MPC - Free Report) .  

Zacks Rank & Other Stocks

Energy Transfer Partners currently carries a Zacks Rank #5 (Strong Sell).

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