Back to top

Image: Bigstock

Energy Transfer (ET) to Post Q3 Earnings: What's in Store?

Read MoreHide Full Article

Energy Transfer LP (ET - Free Report) is scheduled to release third-quarter 2021 results on Nov 3 after the market closes. In the last reported quarter, this oil and gas midstream firm delivered a negative surprise of 16.7%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

The firm’s third-quarter earnings are likely to have benefited predominantly from fee-based contracts with drillers. Energy Transfer’s third-quarter earnings are also expected to have gained from the completion of organic projects like the Bakken pipeline optimization project and others, which in turn increased pipeline transportation capacity.

With Energy Transfer's pipelines spread across every major production basin, an increase in hydrocarbon production must have boosted the demand for midstream services and thereby earnings.

Expectation

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 26 cents per unit and $14.96 billion, respectively. Revenue estimates indicate an increase of 50.3%, while earnings per unit estimates suggest a decline of 13.3% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you see below.

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP Price and EPS Surprise

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

Earnings ESP: It has an Earnings ESP of -10.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Energy Transfer has a Zacks Rank #3.

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

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Diamondback Energy, Inc. (FANG - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 1. It has an Earnings ESP of +0.50% and sports a Zacks Rank of 1, currently.

Oasis Midstream Partners LP is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 3. It has an Earnings ESP of +12.31% and a Zacks Rank of 3, currently.

Apache Corporation (APA - Free Report) is likely to come up with an earnings beat when it reports third-quarter 2021 results on Nov 4. It has an Earnings ESP of +0.42% and sports a Zacks Rank of 1, currently.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


APA Corporation (APA) - free report >>

Energy Transfer LP (ET) - free report >>

Diamondback Energy, Inc. (FANG) - free report >>

Published in