Plains All American Pipeline, L.P.
) announced second-quarter 2013 pro forma earnings per unit
of 56 cents, surpassing the Zacks Consensus Estimate by 3 cents.
BUCKEYE PARTNRS (BPL): Free Stock Analysis
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However, quarterly earnings per unit were 31.7% lower than the
year-ago figure primarily due to weak performance at the
segment in terms of a rise in expenses and decrease in profit at
Supply and Logistics
segment for thinner crude oil differentials. These negatives were
partially offset by a rise in profit at the partnership's
segment due to the positive impacts from a crude oil rail
acquisition and an organic project, and higher profitability from
natural gas liquids (NGL) fractionation and gas processing.
On a GAAP basis, Plains All American Pipeline's earnings per unit
were 57 cents versus 93 cents a year ago. The variation between
GAAP and pro forma earnings was due to a penny gain from
Plains All American Pipeline reported revenues of $10.3 billion,
beating the Zacks Consensus Estimate by $0.4 billion and year-ago
results by 3%.
Plains All American Pipeline's total costs and expenses increased
6.3% year over year to $10 billion due to increase in purchases
and related costs, field operating costs, general and
administrative expenses, and depreciation expenses.
An increase in revenues was more than offset by higher total
costs and expenses. In the reported quarter, operating margin
declined by 100 basis points to 3.7% from 4.7% in a year ago
Plains All American Pipeline's interest expenses totaled $75
million, flat with the year- ago level.
As of Jun 30, 2013, Plains All American Pipeline's current assets
were $4.8 billion versus $5.1 billion as of Dec 31, 2012.
Long-term debt, as of Jun 30, 2013, was $6.3 billion, flat as of
Dec 31, 2012.
Net cash provided by operating activities during the second
quarter of 2013 was $358 million, substantially higher than $30
million a year ago due to a decline in net change in assets and
liabilities for the acquisitions.
Plains All American Pipeline increased the mid-point of its
full-year 2013 adjusted earnings before interest, tax,
depreciation and amortization guidance by $30 million to $2.19
billion. An increase in guidance was primarily driven by the
benefits of solid year-on-date results and chances of
better-than-expected performance at the supply and logistics
segment in the rest of the year.
Other Company Releases
Buckeye Partners L.P.
) second quarter 2013 operating earnings per unit of 72 cents
trailed the Zacks Consensus Estimate by 7 cents.
El Paso Pipeline Partners, L.P.
) announced second-quarter 2013 operating earnings of 43 cents
per unit, lagging the Zacks Consensus Estimate by 4 cents.
ONEOK Partners L.P.
) reported second-quarter 2013 earnings per unit of 62 cents,
beating the Zacks Consensus Estimate by 8 cents.
Plains All American Pipeline is currently developing its
Mississippian Lime pipeline, Rainbow 2 pipeline and Gardendale
Gathering System projects. During the earnings call, the
partnership has announced its intention to increase its expansion
capital program by $200 million to $1.6 billion in 2013.
We believe that the installation of the new pipelines and
upgrading the existing ones will allow Plains All American
Pipeline to strengthen its presence in the region, subsequently
improving the partnership's forthcoming performance.
However, we are cautious about stringent regulations and volatile
commodity pricing, which may to some extent, challenge Plains All
American Pipeline's future results. The partnership currently has
a Zacks Rank #3 (Hold).