Natural gas pipeline operator
Energy Transfer Partners L.P.
) 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.
ENERGY TRAN EQT (ETE): Free Stock Analysis
ENERGY TRAN PTR (ETP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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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.
) 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.
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.
Maintenance capital expenditure totaled $51 million, up 112.5%
year over year.
As of Mar 31, 2013, ETP had long-term debt (less current
maturities) of $16,135 million. Debt-to-capitalization ratio was
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.
Magellan Midstream Partners L.P.
) with a Zacks Rank #2 (Buy) is another pipeline operator that
offers value and is worth buying.