Natural gas pipeline operator Energy Transfer Partners L.P. (ETP) reported fourth quarter 2013 loss from continuing operations of $1.87 per limited partner unit, as against the Zacks Consensus Estimate of a profit of 59 cents and the year earlier earnings of 56 cents. The disappointing result reflects the effect of a non-cash goodwill impairment related to Trunkline LNG Company, LLC.
However, quarterly revenues increased 9.6% year over year to $12,032.0 million and also surpassed the Zacks Consensus Estimate of $11,468.0 million. Higher revenues from the NGL Transportation and Services segment and from investments in Sunoco Logistics Partners L.P. (SXL) led to the improvement.
For 2013, Energy Transfer Partners reported a loss of 23 cents per limited partner unit against a profit of $4.91 last year and the Zacks Consensus Estimate of $2.29. Revenues, however, increased significantly to $46,339.0 million from $15,702.0 million in 2012.
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced fourth-quarter distribution of 92 cents per unit ($3.68 per unit annualized), representing a sequential increase of about 1.7%. The distribution was paid on Feb 14, 2014, to unitholders of record as of Feb 7.
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter were $986.0 million compared with $948.0 million in the year-ago quarter. The improvement reflects the benefits from recent strategic activities and organic growth projects undertaken by the partnership.
The partnership reported an operating loss of $151.0 million against an income $463.0 million in fourth quarter 2012.
Operating Expense
Energy Transfer Partners reported operating cost of $376.0 million for the fourth quarter of 2013, reflecting a year-over-year decrease of 10.3%
Distributable Cash Flow
Energy Transfer Partners reported distributable cash flow of $530 million, significantly higher from the prior-year quarter level of $246 million.
Capital Expenditure
Maintenance capital expenditure totaled $109.0 million, down 23.8% year over year.
Balance Sheet
As of Dec 31, 2013, Energy Transfer Partners had long-term debt (less current maturities) of $16,451.0 million. The debt-to-capitalization ratio was 50.2%.
Zacks Rank
Energy Transfer Partners currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players from the industry like Magellan Midstream Partners LP (MMP) and NuStar Energy L.P. (NS). Both these stocks hold a Zacks Rank #2 (Buy).
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