Back to top

Image: Bigstock

Phillips 66 Partners (PSXP) Earnings Miss Estimates in Q3

Read MoreHide Full Article

Phillips 66 Partners LP’s (PSXP - Free Report) third-quarter 2019 earnings per unit came in at 92 cents, missing the Zacks Consensus Estimate of $1 and deteriorating from the year-ago $1.10. A decline in crude oil transported volumes led to the underperformance.

Revenues of $411 million rose from $384 million in the year-ago quarter and also beat the Zacks Consensus Estimate of $407 million, thanks to higher terminal throughput volumes.

Operating Information

The partnership provides services through Pipelines, Terminals and Storage, and Processing & Other activities.

Pipeline: In third-quarter 2019, the partnership generated revenues of $121 million, down marginally from $123 million a year ago owing to a drop in transported crude oil volumes.

Terminals: The partnership generated $41 million, reflecting an improvement from $37 million a year ago, thanks to higher throughput volumes of crude oil and refined petroleum products.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $108 million, up from $105 million in the year-ago quarter.

Operating and Maintenance Expenses

In the September quarter of 2019, the company reported operating and maintenance expenses of $91 million, showing a rise from $84 million in the year-ago period.

Balance Sheet

As of Sep 30, 2019, the partnership recorded cash and cash equivalents of $655 million. Also, total debt at the end of the quarter under review was $3,815 million.

Zacks Rank & Other Stocks to Consider

Phillips 66 Partners currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are Crescent Point Energy Corp. (CPG - Free Report) , Pembina Pipeline Corporation (PBA - Free Report) and Matrix Service Company (MTRX - Free Report) . While Crescent Point and Pembina Pipeline sport a Zacks Rank #1 (Strong Buy), Matrix Service carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.     

Crescent beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 235.1%.

Pembina Pipeline has posted an average positive earnings surprise of 28.1% for the past four quarters.

Matrix Service has managed to beat the Zacks Consensus Estimate for earnings in three of the past four quarters.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>