Energy Transfer Equity, Energy Transfer Partners Revenue Slumps
February 24 2016 - 7:10PM
Dow Jones News
Energy Transfer Equity LP and affiliate Energy Transfer Partners
LP each reported slumping fourth-quarter revenue that came in well
below analysts' expectations.
Energy Transfer Equity's common units fell 6.6% to $6.70 in
recent after-hours trading as per-unit earnings also missed
expectations.
Energy Transfer Partners' common units, meanwhile, dropped 5.3%
to $28.15 in recent after-hours trading as the company posted a
per-unit loss, while analysts had been looking for a per-unit
profit.
Over all, Energy Transfer Equity reported a profit of $314
million, or 30 cents a common unit, up from $113 million, or 11
cents a unit, a year earlier. Revenue slumped 29% to $9.54
billion.
Analysts polled by Thomson Reuters expected per-unit profit of
36 cents and revenue of $13.04 billion.
Energy Transfer Partners reported a profit of $46 million, down
from $108 million a year earlier. The per-unit loss, which reflects
general partner interests, was 68 cents, compared with a
year-earlier per-unit loss of 28 cents. Revenue plunged 53% to
$5.83 billion.
Analysts polled by Thomson Reuters expected per-unit profit of
43 cents and revenue of $8.95 billion.
Energy Transfer is in the process of acquiring Williams Cos. in
a $32.6 billion deal, though in recent months investors have faced
a series of concerns that have raised doubts about whether the deal
will close, including an announcement earlier this month that
Energy Transfer finance chief Jamie Welch was leaving the company.
Williams last week reiterated that its board is unanimously
committed to the completion of the merger.
Many pipeline companies had said they were mostly insulated from
low energy prices because most of their revenue is based on fixed
fees. However, in recent quarters, signs that the pipeline industry
isn't immune to the commodities rout have slammed the sector's
stocks.
Last week, Williams reported that it swung to an unexpected
fourth-quarter loss amid a big write-down, mostly related to low
commodities prices and weaker market values for affiliate Williams
Partners LP and its peers.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
February 24, 2016 18:55 ET (23:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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