Natural gas pipeline operator Energy Transfer Partners LP (ETP - Free Report) reported third-quarter 2016 earnings of 14 cents per limited partner unit, which missed the Zacks Consensus Estimate of 26 cents. The bottom line, however, increased from the year-ago quarter profit of 10 cents per limited partner unit.
Quarterly revenues declined more than 16% year over year to $5,531 million and also lagged the Zacks Consensus Estimate of $5,562 million.
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced third-quarter distribution of $1.055 per unit ($4.22 per unit annualized). This cash distribution remained unchanged on a sequential basis.
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,390 million, down from $1,500 million a year ago.
The partnership reported operating income of $638 million as against $576 million in third-quarter 2015.
Energy Transfer Partners reported total expense of $4,893 million in third-quarter 2016, downb 18.8% year over year.
Distributable Cash Flow
Energy Transfer Partners’ distributable cash flow of $718 million was significantly lower than the prior-year quarter level of $727 million.
Maintenance capital expenditure totaled $97 million compared with $124 million in the third quarter of 2015.
As of Sep 30, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $29,182 million. Debt-to-capitalization ratio was about 52%.
ENERGY TRAN PTR Price, Consensus and EPS Surprise
Zacks Rank & Stocks to Consider
Energy Transfer Partners currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ultra Petroleum Corp. (UPLMQ - Free Report) and McDermott International Inc. (MDR - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>