Plains All American Pipeline, L.P. PAA reported third-quarter 2016 adjusted earnings of 40 cents per unit, beating the Zacks Consensus Estimate of 31 cents by 29%.
Quarterly earnings, however, surged 66.7% from the year-ago tally of 24 cents.
Total Revenue
In the third quarter, the partnership reported total revenue of $5,170 million, which beat the Zacks Consensus Estimate of $5,091 million by 1.6%.
However, revenues fell around 6.9% year over year primarily due to lower contribution from the Supply & Logistics (7.1%) segment.
PLAINS ALL AMER Price, Consensus and EPS Surprise
PLAINS ALL AMER Price, Consensus and EPS Surprise | PLAINS ALL AMER Quote
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $4,821 million, down 7.6% year over year primarily due to lower purchases and related costs, field operating costs, and depreciation and amortization.
The partnership’s operating income increased 4.2% to $349 million from $335 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $450 million in the second quarter, down 9.5% year over year.
Interest expenses increased 3.7% to $113 million from $109 million a year ago.
Financial Update
Current assets as of Sep 30, 2016 were $3,773 million, compared with $2,969 million as of Dec 31, 2015.
As of Sep 30, 2016, Plains All American had long-term debt of $9,634 million, compared with $10,375 million as of Dec 31, 2015. The long-term, debt-to-total book capitalization ratio at the end of the quarter was 51%, down from 57% at 2015 end.
Guidance
Plains All American issued its fourth-quarter 2016 and full-year adjusted net income guidance in the range of $280–$342 million and $1,063–$1,125 million, respectively.
Further, the partnership expects fourth-quarter 2016 adjusted EBITDA in the range of $569 million to $619 million and 2016 guidance for adjusted EBITDA in the range of $2,100 million to $2,150 million.
The partnership also provided 2016 expansion capital expenditure guidance in the $1,375–$1,475 million band. It projects maintenance capital expenditure in the range of $175–$185 million.
Peer Releases
PBF Logistics LP PBFX reported third-quarter 2016 earnings of 50 cents, missing the Zacks Consensus Estimate of 52 cents by 3.85%.
Boardwalk Pipeline Partners, LP’s BWP third-quarter 2016 earnings of 19 cents were on par with the Zacks Consensus Estimate.
ONEOK Partners, L.P. OKS reported third-quarter 2016 earnings of 59 cents per unit, beating the Zacks Consensus Estimate of 58 cents by 1.7%.
Zacks Rank
Plains All American currently holds a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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