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Energy Transfer (ETE) Earnings Miss, Revenues Beat in Q3

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Energy Transfer Equity, L.P. (ETE - Free Report) reported third-quarter 2016 earnings of 19 cents per unit, missing the Zacks Consensus Estimate of 27 cents by 29.6%. The reported figure was also down from the year-ago tally of 28 cents.

Total Revenue

In the quarter under review, Energy Transfer’stotal revenue came in at $9,675 million, surpassing the Zacks Consensus Estimate of $9,067 million by 6.7%.

However, revenues were down 8.9% from $10,616 million reported a year ago.

Operational Highlights

In the third quarter, total costs and expenses declined 9.9% year over year to $8,978 million primarily due to lower cost of products sold and operating expenses, partially offset by an increase in depreciation, depletion and amortization; and selling, general and administration expenses.

The company’s operating income improved 7.2% to nearly $697 million from $650 million a year ago.

Interest expenses were up 8.8 % to $481 million.

In the quarter under review, distributable cash flow was down 13.5% to $281 million from $325 million a year ago.

ENERGY TRAN EQT Price, Consensus and EPS Surprise

 

Financial Screening

As of Sep 30, 2016, Energy Transfer Equity had cash and cash equivalents of $472 million, compared with $606 million as of Dec 31, 2015.

Long-term debt as of Sep 30, 2016 was $40,020 million, up from $36,837 million as of Dec 31, 2015.

Energy Transfer Equity’s capital expenditure in the first nine months of 2016 was $6,123 million, down 8.4% from $6,688 million in the year-ago period.

Peer Releases

Buckeye Partners, L.P. (BPL - Free Report) reported third-quarter 2016 earnings of $1.19 per unit, surpassing the Zacks Consensus Estimate of 98 cents by 21.4%.

Boardwalk Pipeline Partners, LP’s (BWP - Free Report) third-quarter 2016 earnings of 19 cents per unit came in line with the Zacks Consensus Estimate.

CONE Midstream Partners LP (CNNX - Free Report) reported third-quarter 2016 earnings of 40 cents per unit, surpassing the Zacks Consensus Estimate of 37 cents by 8.1%.

Zacks Rank

Energy Transfer Equitycurrently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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