Natural gas pipeline operator Energy Transfer Partners LP ETP reported third-quarter 2016 earnings of 14 cents per limited partner unit, which missed the Zacks Consensus Estimate of 26 cents. The bottom line, however, increased from the year-ago quarter profit of 10 cents per limited partner unit.
Quarterly revenues declined more than 16% year over year to $5,531 million and also lagged the Zacks Consensus Estimate of $5,562 million.
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced third-quarter distribution of $1.055 per unit ($4.22 per unit annualized). This cash distribution remained unchanged on a sequential basis.
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,390 million, down from $1,500 million a year ago.
The partnership reported operating income of $638 million as against $576 million in third-quarter 2015.
Total Expense
Energy Transfer Partners reported total expense of $4,893 million in third-quarter 2016, downb 18.8% year over year.
Distributable Cash Flow
Energy Transfer Partners’ distributable cash flow of $718 million was significantly lower than the prior-year quarter level of $727 million.
Capital Expenditure
Maintenance capital expenditure totaled $97 million compared with $124 million in the third quarter of 2015.
Balance Sheet
As of Sep 30, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $29,182 million. Debt-to-capitalization ratio was about 52%.
ENERGY TRAN PTR Price, Consensus and EPS Surprise
Zacks Rank & Stocks to Consider
Energy Transfer Partners currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy sector include Braskem S.A. BAK, Ultra Petroleum Corp. UPLMQ and McDermott International Inc. MDR. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
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