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Energy Transfer (ET) Q1 Earnings & Revenues Miss Estimates
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Energy Transfer LP (ET - Free Report) reported first-quarter 2020 adjusted earnings of 18 cents per unit, which missed the Zacks Consensus Estimate of 32 cents by 43.8%. The bottom line was down 51.4% from the year-ago reported figure.
Total Revenues
Total revenues in the first quarter amounted to $11,627 million, which missed the Zacks Consensus Estimate of $14,022 million by 17.1%.
Revenues also declined 11.4% from $13,121 million reported in the year-ago quarter. The year-over-year decline in revenues was due to lower contribution from natural gas, NGL and refined product sales.
Energy Transfer LP Price, Consensus and EPS Surprise
In the quarter under review, Energy Transfer’s total costs and expenses were $11,566 million, up 2.8% year over year. The increase was caused by higher operating expenses, depreciation and amortization costs, as well as selling, general and administrative expenses.
The firm’s operating income dropped to $61 million from $1,865 million in the prior-year quarter. Lower revenues and higher impairment loss adversely impacted operating income in the reported quarter.
Interest expenses increased 2% year over year to $602 million.
Financial Update
As of Mar 31, 2020, cash and cash equivalents were $196 million compared with $291 million on Dec 31, 2019.
As of Mar 31, 2020, the firm had a long-term debt of $50,299 million compared with $51,028 million on Dec 31, 2019.
Cash provided from operating activities in the first quarter was $1,816 million, in line with the year-ago period.
Guidance
Taking into consideration the current economic condition and its impact on demand, the firm has decided to lower 2020 growth capital outlook by $400 million to $3.6 billion. The firm might lower its growth capital expenditure guidance for 2020 to the range of $300-$400 million, depending on the prevailing situation.
Nearly 70% of the planned growth capital expenditure will be directed toward projects that are 60% or more complete and will come in service in 2020 or early 2021.
Zacks Rank
Energy Transfer LP currently carries a Zacks Rank #4 (Sell).
Plains All American Pipeline, L.P. (PAA - Free Report) , currently carrying a Zacks Rank #3 (Hold), reported first-quarter 2020 adjusted earnings of 55 cents per unit, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
Delek Logistics Partners (DKL - Free Report) , currently holding a Zacks Rank #2 (Buy), reported first-quarter 2020 adjusted earnings of 76 cents per unit, which beat the Zacks Consensus Estimate of 59 cents by 28.8%.
Sempra Energy (SRE - Free Report) currently holding a Zacks Rank #2, reported first-quarter 2020 adjusted earnings of $3.08 per share, which beat the Zacks Consensus Estimate of $2.32 by 32.8%.
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Energy Transfer (ET) Q1 Earnings & Revenues Miss Estimates
Energy Transfer LP (ET - Free Report) reported first-quarter 2020 adjusted earnings of 18 cents per unit, which missed the Zacks Consensus Estimate of 32 cents by 43.8%. The bottom line was down 51.4% from the year-ago reported figure.
Total Revenues
Total revenues in the first quarter amounted to $11,627 million, which missed the Zacks Consensus Estimate of $14,022 million by 17.1%.
Revenues also declined 11.4% from $13,121 million reported in the year-ago quarter. The year-over-year decline in revenues was due to lower contribution from natural gas, NGL and refined product sales.
Energy Transfer LP Price, Consensus and EPS Surprise
Energy Transfer LP price-consensus-eps-surprise-chart | Energy Transfer LP Quote
Highlights of the Release
In the quarter under review, Energy Transfer’s total costs and expenses were $11,566 million, up 2.8% year over year. The increase was caused by higher operating expenses, depreciation and amortization costs, as well as selling, general and administrative expenses.
The firm’s operating income dropped to $61 million from $1,865 million in the prior-year quarter. Lower revenues and higher impairment loss adversely impacted operating income in the reported quarter.
Interest expenses increased 2% year over year to $602 million.
Financial Update
As of Mar 31, 2020, cash and cash equivalents were $196 million compared with $291 million on Dec 31, 2019.
As of Mar 31, 2020, the firm had a long-term debt of $50,299 million compared with $51,028 million on Dec 31, 2019.
Cash provided from operating activities in the first quarter was $1,816 million, in line with the year-ago period.
Guidance
Taking into consideration the current economic condition and its impact on demand, the firm has decided to lower 2020 growth capital outlook by $400 million to $3.6 billion. The firm might lower its growth capital expenditure guidance for 2020 to the range of $300-$400 million, depending on the prevailing situation.
Nearly 70% of the planned growth capital expenditure will be directed toward projects that are 60% or more complete and will come in service in 2020 or early 2021.
Zacks Rank
Energy Transfer LP currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Plains All American Pipeline, L.P. (PAA - Free Report) , currently carrying a Zacks Rank #3 (Hold), reported first-quarter 2020 adjusted earnings of 55 cents per unit, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
Delek Logistics Partners (DKL - Free Report) , currently holding a Zacks Rank #2 (Buy), reported first-quarter 2020 adjusted earnings of 76 cents per unit, which beat the Zacks Consensus Estimate of 59 cents by 28.8%.
Sempra Energy (SRE - Free Report) currently holding a Zacks Rank #2, reported first-quarter 2020 adjusted earnings of $3.08 per share, which beat the Zacks Consensus Estimate of $2.32 by 32.8%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>