Energy Transfer Lags on Earnings, Rises Y/Y - Analyst Blog
November 06 2013 - 12:50PM
Zacks
Energy Transfer Equity
L.P. (ETE) posted earnings from continuing operations of
52 cents per limited partner unit, which fell short of the Zacks
Consensus Estimate of 63 cents. However, the results improved
considerably from the year-ago profit of 23 cents.
Revenues increased substantially to $12,486.0 million in the
reported quarter from $2,104.0 million a year ago. Revenues
surpassed the Zacks Consensus Estimate of $11,855.0 million.
Importantly, quarterly cash distribution per common unit was raised
to 67.25 cents ($2.69 annualized), representing a year-over-year
increase of 7 cents. The distribution is payable on Nov 19, 2013 to
unitholders of record as of Nov 4. Including this hike, the
partnership has increased the quarterly distribution four times in
a row.
The partnership’s distributable cash flow –– a measure of its
ability to return cash to unitholders –– before certain items was
$176.0 million versus $189.0 million in the comparable quarter last
year.
Costs & Income
Total costs and expenses stood at $11,957.0 million versus $1,745.0
million in the third quarter 2012. Operating income also improved
47.4% year over year to $529.0 million.
The partnership’s net income attributable to partners was $151
million, a sharp jump from $35 million in the comparable period
last year.
Balance Sheet
As of Sep 30, 2013, Energy Transfer had long-term debt (less
current maturities) of $22,011.0 million. The
debt-to-capitalization ratio was 56.1%.
At the Peer
Plains All American Pipeline, L.P. (PAA) announced
third-quarter 2013 operating earnings of 50 cents per unit, beating
the Zacks Consensus Estimate of 44 cents by 13.6%. However,
earnings were lower than 73 cents reported in the year-ago
quarter.
Zacks Rank
Energy Transfer currently holds a Zacks Rank #2 (Buy). Meanwhile,
one can look at other oil and pipeline master limited partnerships
(MLP) like Pioneer Southwest Energy Partners L.P.
(PSE) and Magellan Midstream Partners LP (MMP)
that offer value. Pioneer Southwest holds a Zacks Rank #1 (Strong
Buy), while Magellan Midstream carries a Zacks Rank #2 (Buy).
ENERGY TRAN EQT (ETE): Free Stock Analysis Report
MAGELLAN MDSTRM (MMP): Free Stock Analysis Report
PLAINS ALL AMER (PAA): Free Stock Analysis Report
PIONEER SW EGY (PSE): Free Stock Analysis Report
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