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Plains All American (PAA) Q1 Earnings Beat Estimates, Down Y/Y
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Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2020 adjusted earnings of 55 cents per unit, which beat the Zacks Consensus Estimate of 48 cents by 14.6%. However, the bottom line was down 20% from the year-ago quarter’s reported figure.
In the quarter under review, the partnership incurred GAAP loss of $3.98 per unit compared with $1.20 earnings in the year-ago quarter.
Total Revenues
Total revenues in the first quarter amounted to $8,269 million, which missed the Zacks Consensus Estimate of $8,830 million by 6.35%. Revenues declined 1.2% from $8,375 million reported in the year-ago quarter.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
In the Transportation segment, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $442 million increased 11% from the year-ago quarter’s figure, primarily driven by higher volumes in its Permian Basin systems, including the Cactus II pipeline, which came into service in August 2019.
In the Facilities segment, adjusted EBITDA amounted to $210 million. The figure was up 14% from the year-ago quarter’s reported figure. The upside was primarily driven by the collection of a deficiency payment on a multi-year contract.
The Supply and Logistics segment reported adjusted EBITDA of $141 million, which fell 49% from the year-ago quarter’s figure of $278 million. The decline was primarily caused by less favorable crude oil differentials and NGL margins.
Highlights of the Release
In the quarter under review, Plains All American’s total costs and expenses were $11,042 million, up 44.1% year over year. The increase was caused by higher purchases and related costs, depreciation and amortization expenses, losses on asset sales and asset impairments as well as goodwill impairment losses. Consequently, the firm’s operating income dropped to $2,773 million from $714 million in the prior-year quarter.
Interest expenses increased 7% year over year to $108 million.
Financial Update
As of Mar 31, 2020, current assets were $3,071 million compared with $4,612 million in the corresponding period of 2019.
As of Mar 31, 2020, Plains All American had long-term debt of $9,418 million compared with $9,187 million in the comparable period of 2019.
As of the same date, its long-term debt-to-total-book capitalization ratio was 49%, up from 41% at the end of 2019.
Guidance
Plains All American now expects 2020 earnings to be $1.44 per unit. The partnership expects 2020 adjusted EBITDA to be $2,425 million.
Plains All American expects 2020 expansion capital to be $1,100 million.
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share (EPS) of $1.29, which beat the Zacks Consensus Estimate of 64 cents by 101.6%.
Exxon Mobil Corporation (XOM - Free Report) reported first-quarter EPS of 53 cents, which surpassed the Zacks Consensus Estimate of 4 cents by 1,225%.
BP plc (BP - Free Report) reported first-quarter adjusted earnings of 24 cents that missed the Zacks Consensus Estimate of 28 cents by 14.3%.
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Plains All American (PAA) Q1 Earnings Beat Estimates, Down Y/Y
Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2020 adjusted earnings of 55 cents per unit, which beat the Zacks Consensus Estimate of 48 cents by 14.6%. However, the bottom line was down 20% from the year-ago quarter’s reported figure.
In the quarter under review, the partnership incurred GAAP loss of $3.98 per unit compared with $1.20 earnings in the year-ago quarter.
Total Revenues
Total revenues in the first quarter amounted to $8,269 million, which missed the Zacks Consensus Estimate of $8,830 million by 6.35%. Revenues declined 1.2% from $8,375 million reported in the year-ago quarter.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote
Segmental Performance
In the Transportation segment, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $442 million increased 11% from the year-ago quarter’s figure, primarily driven by higher volumes in its Permian Basin systems, including the Cactus II pipeline, which came into service in August 2019.
In the Facilities segment, adjusted EBITDA amounted to $210 million. The figure was up 14% from the year-ago quarter’s reported figure. The upside was primarily driven by the collection of a deficiency payment on a multi-year contract.
The Supply and Logistics segment reported adjusted EBITDA of $141 million, which fell 49% from the year-ago quarter’s figure of $278 million. The decline was primarily caused by less favorable crude oil differentials and NGL margins.
Highlights of the Release
In the quarter under review, Plains All American’s total costs and expenses were $11,042 million, up 44.1% year over year. The increase was caused by higher purchases and related costs, depreciation and amortization expenses, losses on asset sales and asset impairments as well as goodwill impairment losses. Consequently, the firm’s operating income dropped to $2,773 million from $714 million in the prior-year quarter.
Interest expenses increased 7% year over year to $108 million.
Financial Update
As of Mar 31, 2020, current assets were $3,071 million compared with $4,612 million in the corresponding period of 2019.
As of Mar 31, 2020, Plains All American had long-term debt of $9,418 million compared with $9,187 million in the comparable period of 2019.
As of the same date, its long-term debt-to-total-book capitalization ratio was 49%, up from 41% at the end of 2019.
Guidance
Plains All American now expects 2020 earnings to be $1.44 per unit. The partnership expects 2020 adjusted EBITDA to be $2,425 million.
Plains All American expects 2020 expansion capital to be $1,100 million.
Zacks Rank
Plains All American currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Chevron Corporation (CVX - Free Report) reported adjusted first-quarter earnings per share (EPS) of $1.29, which beat the Zacks Consensus Estimate of 64 cents by 101.6%.
Exxon Mobil Corporation (XOM - Free Report) reported first-quarter EPS of 53 cents, which surpassed the Zacks Consensus Estimate of 4 cents by 1,225%.
BP plc (BP - Free Report) reported first-quarter adjusted earnings of 24 cents that missed the Zacks Consensus Estimate of 28 cents by 14.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>