On May 6, 2014, natural gas pipeline operator
Energy Transfer Partners LP
) reported higher first quarter 2014 earnings. Following the
favorable results, the unit price rose 2.5% in the NYSE, as
reflected in the higher closing price on Wednesday. However the
unit price fell 2.8% on May 8, 2014.
Energy Transfer Partners reported income from continuing operations
of 69 cents per limited partner unit, which came in above the
year-ago profit of 60 cents per unit, primarily attributable to
higher customer demand.
However, the bottom line failed to beat the Zacks Consensus
Estimate of 71 cents, owing to increased total expenses.
Quarterly revenues increased 12.7% year over year to $12,232.0
million and also surpassed the Zacks Consensus Estimate of
$12,147.0 million. Higher revenues from the Intrastate
Transportation and Storage segment and investments in
Sunoco Logistics Partners LP
) that paid off in the reported quarter accounted for the overall
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced first-quarter
distribution of 93.5 cents per unit ($3.74 per unit annualized),
representing a sequential increase of about 1.6%. The distribution
is payable on May 15, 2014, to unitholders of record as of May
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation, and
amortization or EBITDA for the quarter were $1,206.0 million, up
from $956.0 million in the year-ago quarter. Contributors to the
growth were improved commodity prices and higher customer demand.
The partnership reported an operating income of $688.0 million, up
28.8% from $534.0 million the first-quarter 2013.
Energy Transfer Partners reported total cost of $11,544.0 million
for the first quarter, reflecting a year-over-year increase of
Distributable Cash Flow
Energy Transfer Partners reported distributable cash flow of $629
million, significantly higher than the prior-year quarter level of
Maintenance capital expenditure totaled $39.0 million, down 23.5%
year over year.
As of Mar 31, 2014, Energy Transfer Partners had long-term debt
(less current maturities) of $16,191.0 million. The
debt-to-capitalization ratio was 51.6%.
In a separate press release, Energy Transfer Partners declared that
it has signed a deal with Comisión Federal De Electricidad ("CFE"),
a state-owned electric power firm in Mexico.
Per the agreement, Energy Transfer Partners is expected to
transport roughly 930,000 million British thermal units of natural
gas to CFE every day for a period of 15 years.
Energy Transfer Partners 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 better-ranked players in the same
Boardwalk Pipeline Partners LP
Targa Resources Partners LP
). Both the players sport a Zacks Rank #1 (Strong Buy).
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BOARDWALK PIPLN (BWP): Free Stock Analysis
ENERGY TRAN PTR (ETP): Free Stock Analysis
TARGA RESOURCES (NGLS): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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