Markets
EPD

Enterprise Products Partners Misses Q2 Earnings Estimates - Analyst Blog

Enterprise Products Partners L.P.EPD reported second-quarter 2015 adjusted earnings per limited partner unit of 28 cents, which missed the Zacks Consensus Estimate of 32 cents. The bottom line was also lower than the year-ago quarterly earnings of 67 cents.

Enterprise Products Partners LP - Earnings Surprise | FindTheBest

Quarterly distribution at Enterprise Products increased 5.6% year over year to 38 cents per common unit, or $1.52 per unit on an annualized basis. Distributable cash flow of $988 million provided coverage of 1.3x. The partnership retained $238 million in cash flow, thereby reducing its financing needs.

Revenues in the quarter decreased from $12,520.8 million in the year-ago quarter to $7,092.5 million and failed to meet the Zacks Consensus Estimate of $8,733 million by a wide margin.

Second Quarter Segmental Performance

Gross operating income in the NGL Pipeline & Services segment dropped from $680.9 million in the year-ago quarter to $650.6 million.

Onshore Natural Gas Pipeline and Services' gross operating income decreased from $203 million in the year-ago quarter to $191.4 million.

However, gross operating income from the Onshore Crude Oil Pipelines & Services segment shot up 28% year over year to $235.6 million.

Gross operating income from the Petrochemical & Refined Product Services segment improved to $181.3 million from the year-earlier level of $161.7 million.

Moreover, Enterprise's Offshore Pipelines & Services' gross operating income was $44.3 million, higher than $33.6 million a year ago.

Financials

During the quarter, the partnership spent $888.1 million. Outstanding total debt principal as of Jun 30, 2015, was $22.3 billion. Enterprise had consolidated liquidity of $5.6 billion, which comprised unrestricted cash on hand and available borrowing capacity.

Zacks Rank & Other Stock Picks

Enterprise Products Partners currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, some better-ranked players in the energy sector are Western Gas Equity Partners, LP WGP , Tallgrass Energy Partners LP TEP and Vanguard Natural Resources LLC VNR . All these stocks sport a Zacks Rank #1 (Strong 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 >>

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

ENTERPRISE PROD (EPD): Free Stock Analysis Report

VANGUARD NATURL (VNR): Free Stock Analysis Report

WESTERN GAS EP (WGP): Free Stock Analysis Report

TALLGRASS ENRGY (TEP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EPD

Other Topics

Earnings Stocks