Plains All American Pipeline, L.P. PAA reported third-quarter 2015 adjusted earnings of 24 cents per unit, lagging the Zacks Consensus Estimate of 26 cents by 7.7%. Quarterly earnings declined 52% year over year.
Total Revenue
The partnership reported total revenues of $5,551 million, short of the Zacks Consensus Estimate of $5,976 million by 7.11% and year-ago revenues by nearly 50.1%.
The downslide was due to lower sales at the partnership’s Transportation (down 5.0%), Facilities (6.4%) and Supply & Logistics (51.3%) segments.
Operational Update
Plains All American’s total cost and expenses went down 51.3% to $5,218 million over the prior year primarily due to lower purchases and related costs (down 53.8%), and general and administrative expenses (23.1%).
The partnership’s operating income plunged 17.6% to $333 million from $404 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $497 million in the third quarter, down 6% from $527 million a year ago.
Interest expenses (net) rose 25.9% year over year to $107 million from $85 million a year ago.
Financial Condition
As of Sep 30, 2015, Plains All American’s current assets were $2,958 million compared with $4,179 million as of Dec 31, 2014.
As of Sep 30, 2015, long-term debt was $9,970 million compared with $8,762 million as of Dec 31, 2014.
The long-term debt-to-total book capitalization ratio at the end of the quarter was 55% compared with 52% at the end of 2014.
Other Peer Releases
Summit Midstream Partners, LP SMLP will report third-quarter earnings before the market opens on Nov 9, 2015. The Zacks Consensus Estimate is pegged at 3 cents.
TC PipeLines, LP TCP will report third-quarter earnings before the market opens on Nov 6, 2015. The Zacks Consensus Estimate is pegged at 56 cents.
Rose Rock Midstream, L.P. RRMS will report third-quarter earnings after the market closes on Nov 5, 2015. The Zacks Consensus Estimate is pegged at 39 cents.
Zacks Rank
Plains All American currently holds a Zacks Rank #3 (Hold).
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