Plains All American Pipeline, L.P.
) will report fourth-quarter 2012 results on Feb 6, 2013. The
partnership is involved in transportation, storage and marketing
of crude oil, refined products and liquefied petroleum gas, and
other natural gas-related petroleum products.
BUCKEYE PARTNRS (BPL): Free Stock Analysis
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PLAINS ALL AMER (PAA): Free Stock Analysis
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Why a Likely Positive Surprise?
Our proven model shows that Plains All American Pipeline is
likely to beat earnings because it has the right combination of
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +1.45%. This is
meaningful and a leading indicator of a likely positive earnings
surprise for this master limited partnership.
Zacks #3 Rank (Hold):
We note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of Plains All American Pipeline's Zacks Rank #3
(Hold) and +1.45% ESP makes us confident of a positive earnings
beat this announcement.
What is Driving the Better than Expected
We appreciate Plains All American Pipeline's diversified
portfolio of crude oil pipelines and storage assets. These are
located in well-established oil producing regions and serve major
U.S. refineries and distribution markets.
The partnership intends to invest more than $1 billion in several
organic growth projects through 2013. This will subsequently
strengthen and expand its existing operations as well as improve
its financial performance.
Plains All American Pipeline's fourth-quarter 2012 financial
results will improve on favorable crude oil differentials and
growing natural gas liquids sales volumes.
The positive trend is seen in the trailing four quarter average
surprise of 16.60%. The partnership's third-quarter 2012 surprise
was 51.06%. Benefits from acquisitions, higher pipeline tariffs
and volumes, and completion of several organic growth projects
aided the surprise.
Other Stocks to Consider
Plains All American Pipeline is not the only organization looking
up this earnings season. We also see other pipeline operators to
Sunoco Logistics Partners L.P.
), earnings ESP of +7.69% and Zacks Rank #2 (Buy).
Buckeye Partners, L.P.
), earnings ESP of +4.94% and Zacks Rank #3 (Hold).
Boardwalk Pipeline Partners, LP
), earnings ESP of +5.13% and Zacks Rank #3 (Hold).