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Energy Transfer (ET) Q2 Earnings Miss Estimates, Down Y/Y

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Energy Transfer LP (ET - Free Report) reported second-quarter 2020 adjusted earnings of 13 cents per unit, which missed the Zacks Consensus Estimate of 25 cents by 48%.

The bottom line was down 60.6% from the year-ago reported figure. The results for the reported quarter were adversely impacted by COVID-19-related economic slowdown, which in turn resulted in lower volumes and market prices.

Total Revenues

Total revenues for the second quarter amounted to $7,338 million, which missed the Zacks Consensus Estimate of $11,597 million by 36.7%. Revenues also declined 47.1% from $13,877 million reported in the year-ago quarter.

Energy Transfer LP Price, Consensus and EPS Surprise

Energy Transfer LP Price, Consensus and EPS Surprise

Energy Transfer LP price-consensus-eps-surprise-chart | Energy Transfer LP Quote

Highlights of the Release

During the second quarter, the firm made progress on capital projects throughout the United States and many such projects are set to be placed in service by year-end.

Cost-saving initiatives by Energy Transfer have resulted in cost savings of $200 million year to date.

Its operating income dropped 26.6% to $1,336 million from $1,820 million in the prior-year quarter.

Interest expenses were $579 million for the reported quarter, on par with the year-ago period.

Financial Update

As of Jun 30, 2020, current assets were $5,516 million compared with $7,464 million on Dec 31, 2019.

As of Jun 30, 2020, the firm had a long-term debt of $51,251 million compared with $51,028 million on Dec 31, 2019.

Guidance

Taking into consideration the current economic condition and its impact on demand, the firm again decided to lower 2020 growth capital guidance by $200 million to $3.4 billion from $3.6 billion expected earlier. It expects capital expenditure for 2021 to be $1.3 billion.

Zacks Rank

Energy Transfer currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Atmos Energy Corporation (ATO - Free Report) posted third-quarter fiscal 2020 earnings of 79 cents per share, which surpassed the Zacks Consensus Estimate of 76 cents by 3.9%.

Sempra Energy’s (SRE - Free Report) second-quarter 2020 adjusted earnings per share came in at $1.65, lagging the Zacks Consensus Estimate of $1.66 by 0.6%.

ONEOK Inc. (OKE - Free Report) posted second-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%.

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