Natural gas pipeline operator,
Energy Transfer Partners LP
), announced lower-than-expected third-quarter 2013 earnings. The
unfavorable results were accountable to a significant upsurge in
ETP reported a profit from continuing operations of 51 cents per
limited partner unit, falling behind the Zacks Consensus Estimate
of 60 cents.
However, the figure increased 96.2% year over year from 26 cents.
Substantial improvement in transportation margin along with
processing and fractionation margin aided the results.
Quarterly revenues of $11,902.0 million surpassed the Zacks
Consensus Estimate of $11,480.0 million. Moreover, comparing year
over year, sales witnessed a whopping increase of 560.5% as
compared to $1,802.0 million posted in third-quarter 2012.
Production hike in Eagle Ford Shale along with increased
transportation volumes of natural gas liquid (NGL) led to the
Quarterly Cash Distribution
Last month, ETP announced third-quarter distribution of 90.5
cents per unit ($3.62 per unit annualized), representing a
sequential increase of 1.3%. The distribution is payable on Nov
14, 2013, to the unitholders of record as of Nov 4, 2013.
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) for the quarter were $942.0 million
compared with $660.0 million in the year-ago quarter. The figure
reflects significant performance from the NGL transportation and
services business unit along with favorable outcome from
Sunoco Logistics Partners LP
Operating income of $526.0 million was up 44.1% from the third
quarter of 2012.
ETP reported operating cost of $331.0 million for the third
quarter of 2013, reflecting a significant year-over-year increase
Distributable Cash Flow
ETP reported distributable cash flow of $527.0 million, up from
$378 .0 million in the prior-year quarter.
Maintenance capital expenditure totaled $62.0 million, down 10.1%
year over year.
As of Sep 30, 2013, ETP had long-term debt (less current
maturities) of $16,352.0 million. The debt-to-capitalization
ratio was 49.1%.
ENERGY TRAN PTR (ETP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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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, one can look at oil and gas production pipeline master
limited partnerships (MLP) like Pioneer
Southwest Energy Partners LP
Magellan Midstream Partners LP
) that offer better prospects. Pioneer Southwest Energy sports a
Zacks Rank #1 (Strong Buy) while Magellan Midstream retains a
Zacks Rank #2 (Buy).