Plains All American Pipeline, L.P.
) announced first-quarter 2014 adjusted earnings of 65 cents per
unit, surpassing the Zacks Consensus Estimate of 56 cents by 16.1%.
However, quarterly bottom line dropped 48.4% from $1.26 per unit a
year ago, primarily due to higher total costs and expenses as well
as unit counts.
The partnership's GAAP earnings were 73 cents per unit versus $1.27
per unit in the prior-year quarter.
The difference between GAAP and adjusted earnings during the
reported quarter was due to the combined impact of a gain from
derivative activities, equity-indexed compensation expenses, and
loss related to foreign currency revaluation and tax effect.
Revenues at Plains All American Pipeline at the end of
first-quarter were $11,684 million versus $10,620 million in the
year-ago period, reflecting growth of 10%.
Increases in sales at the partnership's
Supply & Logistics
(up 11.2% year over year) and
(up 5.2% year over year) segments led to the revenue surge. This
was partially offset by lower contribution from
(down 15.5% year over year) segment.
Reported quarter revenues beat the Zacks Consensus Estimate of
$11,259 million by 3.8%.
In the quarter under review, average daily volumes at Plains All
American Pipeline's Transportation segment increased 5.5% year over
year to 3,840 thousands of barrels.
Under the Facilities segment, average monthly volumes improved
$1.7% to 121 millions of barrels from 119 millions of barrels a
Supply and Logistics segment's average daily volumes were 1,166
thousands of barrels, up 1.8% year over year.
Plains All American Pipeline's total cost and expenses were $11,191
million, up 12.3% year over year primarily due to higher purchases
and related costs as well as depreciation expenses.
The partnership's operating income fell 24.7% in first-quarter to
$493 million from $655 million a year ago.
Plains All American Pipeline's adjusted earnings before interest,
taxes, depreciation and amortization (EBITDA) dropped around 23%
year over year to $567 million.
Interest expenses increased $1 million to $78 million from the
prior-year level, primarily due to a rise in long-term debt level.
Plains All American Pipeline's net cash provided by operating
activities during first-quarter 2014 was $822 million versus $979
in the year-ago quarter.
Long-term debt of the partnership, as of Mar 31, 2014, was $6,818
million versus $6,715 million as of Dec 31, 2013. Long-term
debt-to-capital ratio at the end of the quarter was 47%.
Plains All American Pipeline expects net income in second-quarter
and full-year 2014 to range from $224 million to $284 million and
$1,258 million to $1,392 million, respectively.
The partnership provided second-quarter and full-year 2014 EBITDA
guidance in the band of $416 - $466 million and $2,101 - $2,201
The partnership expects capital expenditures for expansion projects
in 2014 to be $1,750 - $1,950 million and an additional $185
million to $205 million for maintenance of capital expenditure.
At the Peer
Boardwalk Pipeline Partners, LP
) reported first-quarter 2014 earnings of 44 cents per unit,
surpassing the Zacks Consensus Estimate of 32 cents by 37.5%.
Plains All American Pipeline currently holds a Zacks Rank #3
(Hold). Other players in the industry include
Targa Resources Partners LP
Delek Logistics Partners, LP
). Targa Resources Partners holds a Zacks Rank #1 (Strong Buy)
while Delek Logistics carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
BOARDWALK PIPLN (BWP): Free Stock Analysis
DELEK LOGISTICS (DKL): Free Stock Analysis
TARGA RESOURCES (NGLS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
To read this article on Zacks.com click here.