ETP Beats Earnings and Revs - Analyst Blog


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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Zacks Investment Research

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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