PAA Natural Gas Storage L.P.
) announced fourth-quarter 2012 operating earnings of 31 cents
per unit, 10.7% higher than the Zacks Consensus Estimate of 28
cents. The results of the partnership were in line with the
ATMOS ENERGY CP (ATO): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
PAA NATURAL GAS (PNG): Free Stock Analysis
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The partnership's 2012 operating earnings were $1.04 per unit,
beating the year-ago figure of 97 cents by 7.2%. With this the
partnership also surpassed the Zacks Consensus Estimate by 3
The improvement in earnings was attributable to the partnership's
disciplined business strategy, strategic location of assets and a
high percentage of contracted fee-based storage revenue.
PAA Natural Gas Storage's GAAP earnings in 2012 were 99 cents per
unit versus 85 cents per unit in the year-ago quarter. The
difference between GAAP and operating earnings was due to charges
of 5 cents related to equity compensation expenses.
Total revenues at the end of the fourth quarter were $112.6
million, $36 million higher than the Zacks Consensus Estimate.
However, revenues were 29.1% lower than comparable prior-quarter
The partnership generated total revenue of $387.7 million in
2012, surpassing the Zacks Consensus Estimate by 6.2% and the
year-ago figure by 13.1%.
The top-line results for the full year benefited from an 11.2%
increase in revenue from Firm storage services and an 18.2%
increase in Hub services and merchant storage from the previous
Highlights of the Release
The partnership's total costs and expenses during the quarter
were $87.9 million, down 35% from the comparable prior-year
period. This was primarily due to a 41.3% decline in storage
The cost savings had a positive effect on the operating income of
the partnership. Operating income in the fourth quarter increased
5.5% year over year to $24.8 million.
The interest expenses of the partnership in the quarter increased
66.8% year over year to $2.35 million mainly due to higher debt
AGL Resources Inc.
) reported earnings of 91 cents per share in the fourth quarter,
lagging the Zacks Consensus Estimate by a dime.
Atmos Energy Corporation
) reported earnings of 74 cents per share in the first quarter
fiscal 2013, lower than the Zacks Consensus Estimate of 78 cents
for the quarter.
PAA Natural Gas Storage continues to post earnings surprises,
thanks to the strategic locations of its storage assets. The
low-cost storage capacity expansions at Southern Pines and Pine
Prairie will also benefit the partnership.The partnership
currently retains a Zacks Rank #3 (Hold).
Based in Houston, Texas, PAA Natural Gas Storage, L.P. primarily
deals with natural gas storage facility. The partnership operates
as a subsidiary of
Plains All American Pipeline, LP
). The partnership provides services to customers from its three
natural gas storage facilities located in Louisiana, Mississippi