Natural gas pipeline operator Energy Transfer Partners, L.P. reported first-quarter 2017 earnings of 9 cents per limited partner unit. The Zacks Consensus Estimate was of earnings of 32 cents per limited partner unit. However, the bottom line compared favorably with the year-ago quarter profit of 8 cents per limited partner unit.
The weaker-than-expected results were led by a 61% increase in total expenses in the reported quarter from the prior-year quarter. Post the earnings release, the units of the company fell 3%.
Quarterly revenues increased to $6,895 million from $4,481 million a year ago. However, the top line missed the Zacks Consensus Estimate of $6,968 million.
This is Energy Transfer Partner’s first earnings release as a combined entity after its merger with Sunoco Logistics Partners. The combined entity is called Energy Transfer Partners and all the financial results are based on the post merger effect.
Sunoco Logistics Partners LP Price, Consensus and EPS Surprise
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced first-quarter distribution of about 53.5 cents per unit ($2.14 per unit annualized). This cash distribution is equivalent to 80.25 cents per unit on a pre-merger basis. The partnership expects to use the cash flow savings to deliver its balance sheet and fund growth projects.
EBITDA, Operating Income and Net Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,414 million compared with $1,412 million a year ago. This 0.14% improvement was mainly driven by strong performance from its Midstream and Liquids Transportation and Services segments. This rise was offset by a decline in Sunoco Logistics’ crude oil acquisition and marketing business.
The company’s Midstream segment benefited from higher Permian volumes, higher non-fee-based processing margins due to a slight recovery in crude oil and natural gas liquid prices, and the PennTex Midstream Partners, LP acquisition. Higher NGL and crude oil transportation volumes drove the results of Liquids Transportation and Servicessegment.
The partnership reported operating income of $654 million compared to $614 million in first-quarter 2016.
The partnership reported a net income of $364 million in the reported quarter, compared with a net profit of $376 million in the year-ago quarter. The decline in the partnership’s net income is due to an income-tax benefit in first-quarter 2016.
Total Expense
Energy Transfer Partners reported total expense of $6,241 million in first-quarter 2017. It had recorded total expense of $3,867 million in the year-ago period.
Distributable Cash Flow
Distributable cash flow of $907 million was lower than the prior-year quarter level of $950 million. The 4.5% decrease in the distributable cash flow drove the partnership’s distribution coverage lower to $1.13x compared with 1.27x in the year ago quarter.
Capital Expenditure
Total capital expenditure for the quarter totaled to $1,256 million with growth capex of $1,196 million accounting for 95% of the total capex. The remaining capex balance was attributed toward maintenance activities totaling $60 million.
Balance Sheet
As of Mar 31, 2017, Energy Transfer Partners had long-term debt (less current maturities) of $31,648 million. Debt-to-capitalization ratio was about 51.5%.
Zacks Rank & Key Picks
Energy Transfer Partners, under the Zacks categorized Oil and Gas - Production Pipeline - MLP industry, currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the broader energy space include Bellatrix Exploration Ltd and McDermott International, Inc. . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bellatrix reported positive earnings surprise of 58.54% in the trailing four quarters.
McDermott posted positive average earnings surprise of 387.5% in the preceding four quarters.
Zacks' 2017 IPO Watch List
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Energy Transfer Partners (ETP) Stock Down on Q1 Earnings Miss
Natural gas pipeline operator Energy Transfer Partners, L.P. reported first-quarter 2017 earnings of 9 cents per limited partner unit. The Zacks Consensus Estimate was of earnings of 32 cents per limited partner unit. However, the bottom line compared favorably with the year-ago quarter profit of 8 cents per limited partner unit.
The weaker-than-expected results were led by a 61% increase in total expenses in the reported quarter from the prior-year quarter. Post the earnings release, the units of the company fell 3%.
Quarterly revenues increased to $6,895 million from $4,481 million a year ago. However, the top line missed the Zacks Consensus Estimate of $6,968 million.
This is Energy Transfer Partner’s first earnings release as a combined entity after its merger with Sunoco Logistics Partners. The combined entity is called Energy Transfer Partners and all the financial results are based on the post merger effect.
Sunoco Logistics Partners LP Price, Consensus and EPS Surprise
Sunoco Logistics Partners LP Price, Consensus and EPS Surprise | Sunoco Logistics Partners LP Quote
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced first-quarter distribution of about 53.5 cents per unit ($2.14 per unit annualized). This cash distribution is equivalent to 80.25 cents per unit on a pre-merger basis. The partnership expects to use the cash flow savings to deliver its balance sheet and fund growth projects.
EBITDA, Operating Income and Net Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,414 million compared with $1,412 million a year ago. This 0.14% improvement was mainly driven by strong performance from its Midstream and Liquids Transportation and Services segments. This rise was offset by a decline in Sunoco Logistics’ crude oil acquisition and marketing business.
The company’s Midstream segment benefited from higher Permian volumes, higher non-fee-based processing margins due to a slight recovery in crude oil and natural gas liquid prices, and the PennTex Midstream Partners, LP acquisition. Higher NGL and crude oil transportation volumes drove the results of Liquids Transportation and Servicessegment.
The partnership reported operating income of $654 million compared to $614 million in first-quarter 2016.
The partnership reported a net income of $364 million in the reported quarter, compared with a net profit of $376 million in the year-ago quarter. The decline in the partnership’s net income is due to an income-tax benefit in first-quarter 2016.
Total Expense
Energy Transfer Partners reported total expense of $6,241 million in first-quarter 2017. It had recorded total expense of $3,867 million in the year-ago period.
Distributable Cash Flow
Distributable cash flow of $907 million was lower than the prior-year quarter level of $950 million. The 4.5% decrease in the distributable cash flow drove the partnership’s distribution coverage lower to $1.13x compared with 1.27x in the year ago quarter.
Capital Expenditure
Total capital expenditure for the quarter totaled to $1,256 million with growth capex of $1,196 million accounting for 95% of the total capex. The remaining capex balance was attributed toward maintenance activities totaling $60 million.
Balance Sheet
As of Mar 31, 2017, Energy Transfer Partners had long-term debt (less current maturities) of $31,648 million. Debt-to-capitalization ratio was about 51.5%.
Zacks Rank & Key Picks
Energy Transfer Partners, under the Zacks categorized Oil and Gas - Production Pipeline - MLP industry, currently carries a Zacks Rank #3 (Hold).
Better-ranked players in the broader energy space include Bellatrix Exploration Ltd and McDermott International, Inc. . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bellatrix reported positive earnings surprise of 58.54% in the trailing four quarters.
McDermott posted positive average earnings surprise of 387.5% in the preceding four quarters.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>