ETP Beats Earnings and Revs - Analyst Blog

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Natural gas pipeline operator Energy Transfer Partners L.P. ( ETP ) announced impressive first quarter 2013 results, aided by strong transportation margins. Energy Transfer Partners reported a profit of 63 cents per limited partner unit, breezing past the Zacks Consensus Estimate of 45 cents.

However, reported profit was below the year-earlier earnings of $4.35. Notably, last year's results have been retrospectively adjusted to reflect the merger of Energy Transfer Equity L.P. ( ETE ) with Southern Union in Mar 2012.

Quarterly revenues of $10,854 million were above our projection of $8,691 million. Comparing year over year, sales saw a whopping increase from $1,323 million to $10,854 million attributable to higher natural gas production and transportation sales.

Quarterly Cash Distribution

Last month, ETP announced first quarter distribution of $0.89375 per unit ($3.575 per unit annualized), unchanged from the year-earlier as well as previous quarter distributions.

EBITDA & Operating Income

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was $956 million compared with $494 million in the year-ago quarter, reflecting robust performance from the Interstate Transportation and Storage business unit along with investments in Sunoco Logistics Partners L.P. ( SXL ).

Operating income of $534 million was up 155.5% from the first quarter of 2012.

Distributable Cash Flow

ETP reported distributable cash flow of $622 million, up from $271 million in the prior-year quarter.

Capital Expenditure

Maintenance capital expenditure totaled $51 million, up 112.5% year over year.

Balance Sheet

As of Mar 31, 2013, ETP had long-term debt (less current maturities) of $16,135 million. Debt-to-capitalization ratio was 48.0%.

Zacks Rank

ETP currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, Magellan Midstream Partners L.P. ( MMP ) with a Zacks Rank #2 (Buy) is another pipeline operator that offers value and is worth buying.



ENERGY TRAN EQT (ETE): Free Stock Analysis Report

ENERGY TRAN PTR (ETP): Free Stock Analysis Report

MAGELLAN MDSTRM (MMP): Free Stock Analysis Report

SUNOCO LOGISTIC (SXL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ETE , ETP , MMP , SXL

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