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Enterprise (EPD) Q4 Earnings Miss Estimates, Revenues Beat
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Enterprise Products Partners L.P. (EPD - Free Report) reported fourth-quarter 2021 adjusted earnings per limited partner unit of 52 cents, missing the Zacks Consensus Estimate of 54 cents. However, the bottom line improved from the year-ago profit of 51 cents.
Total quarterly revenues of $11,370.2 million beat the Zacks Consensus Estimate of $10,262 million. The top line significantly increased from $7,044.2 million in the prior-year quarter.
The lower-than-expected earnings were driven by lower contributions from Natural Gas Pipelines and Services, and NGL Pipelines & Services businesses. The negatives were partially offset by increased contributions from CrudeOil Pipelines & Services, and Petrochemical & Refined Products Services businesses.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Pipeline volumes in NGL, crude oil, refined products and petrochemicals were recorded at 6.5 million barrels per day (bpd), in line with the year-ago quarter. Natural gas pipelines volumes were 14.6 trillion British thermal units per day (TBtus/d), up from 13.7 TBtus/d a year ago. However, marine terminal volumes were 1.5 million bpd, down from the year-ago quarter’s 1.6 bpd.
Gross operating income at NGL Pipelines & Services decreased from $1,144.2 million in the year-ago quarter to $1,109 million primarily due tolower average sales margins and a decline in pipeline transportation volumes.
Natural Gas Pipelines and Services’ gross operating income decreased to $195 million from $225.5 million in the year-ago quarter. The downside was due to a decline in gathering volumes. Lower contribution from its Texas IntrastateSystem also affected the segment.
Crude Oil Pipelines & Services recorded a gross operating income of $437.9 million, which increased from $428.2 million in the prior-year quarterdue to an increase in pipeline volumes from the Midland-to-ECHO Pipeline System. Higher crude oil terminal revenues from its Midland and ECHO crude oil terminals aided the segment.
Gross operating income at Petrochemical & Refined Products Services amounted to $338.1 million compared with $296.8 million a year ago, thanks to higher average sales margins at Chambers County Propylene Production facilities. Increased by-product sales from butane isomerization operations and improved sales volumes from the octane enhancement business aided the segment.
Cash Flow
Adjusted distributable cash flow was $1,659.4 million, up from $1,628.8 million a year ago, and provided coverage of 1.7X. The partnership retained $2.6 billion of distributable cash flow in the December-end quarter. Free cash flow for the quarter was $1,723 million, significantly up from $1,020 million a year ago.
Financials
For fourth-quarter 2021, Enterprise’s total capital expenditure was $424.4 million.
As of Dec 31, 2021, its outstanding total debt principal was $29.8 billion. Enterprise’s consolidated liquidity amounted to $7.3 billion, up sequentially from $6.7 billion. The total liquidity amount included unrestricted cash on hand and available borrowing capacity under its revolving credit facility.
Outlook
For 2022, Enterprise expects growth capital spending of $1.5 billion. The partnership anticipates sustaining capital expenditure of $350 million. It currently has $2.2 billion worth of major capital projects under construction.
Zacks Rank & Stocks to Consider
The partnership currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Schlumberger Limited (SLB - Free Report) is a leading oilfield services company that provides services to oil and gas explorers and producers worldwide. Schlumberger recently reported fourth-quarter earnings of 41 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 39 cents.
Schlumberger is expected to see an earnings growth of 56.3% in 2022. Despite the company’s $22 million severance payments through the December-end quarter, Schlumberger generated a free cash flow of $1.3 billion.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066,7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. Phillips 66 reported fourth-quarter adjusted earnings per share of $2.94, beating the Zacks Consensus Estimate of $1.93.
Phillips 66 is expected to see an earnings growth of 38.1% in 2022. PSX currently has a Zacks Style Score of A for Value, Growth and Momentum. For the fourth quarter, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago.
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Enterprise (EPD) Q4 Earnings Miss Estimates, Revenues Beat
Enterprise Products Partners L.P. (EPD - Free Report) reported fourth-quarter 2021 adjusted earnings per limited partner unit of 52 cents, missing the Zacks Consensus Estimate of 54 cents. However, the bottom line improved from the year-ago profit of 51 cents.
Total quarterly revenues of $11,370.2 million beat the Zacks Consensus Estimate of $10,262 million. The top line significantly increased from $7,044.2 million in the prior-year quarter.
The lower-than-expected earnings were driven by lower contributions from Natural Gas Pipelines and Services, and NGL Pipelines & Services businesses. The negatives were partially offset by increased contributions from CrudeOil Pipelines & Services, and Petrochemical & Refined Products Services businesses.
Enterprise Products Partners L.P. Price, Consensus and EPS Surprise
Enterprise Products Partners L.P. price-consensus-eps-surprise-chart | Enterprise Products Partners L.P. Quote
Segmental Performance
Pipeline volumes in NGL, crude oil, refined products and petrochemicals were recorded at 6.5 million barrels per day (bpd), in line with the year-ago quarter. Natural gas pipelines volumes were 14.6 trillion British thermal units per day (TBtus/d), up from 13.7 TBtus/d a year ago. However, marine terminal volumes were 1.5 million bpd, down from the year-ago quarter’s 1.6 bpd.
Gross operating income at NGL Pipelines & Services decreased from $1,144.2 million in the year-ago quarter to $1,109 million primarily due tolower average sales margins and a decline in pipeline transportation volumes.
Natural Gas Pipelines and Services’ gross operating income decreased to $195 million from $225.5 million in the year-ago quarter. The downside was due to a decline in gathering volumes. Lower contribution from its Texas IntrastateSystem also affected the segment.
Crude Oil Pipelines & Services recorded a gross operating income of $437.9 million, which increased from $428.2 million in the prior-year quarterdue to an increase in pipeline volumes from the Midland-to-ECHO Pipeline System. Higher crude oil terminal revenues from its Midland and ECHO crude oil terminals aided the segment.
Gross operating income at Petrochemical & Refined Products Services amounted to $338.1 million compared with $296.8 million a year ago, thanks to higher average sales margins at Chambers County Propylene Production facilities. Increased by-product sales from butane isomerization operations and improved sales volumes from the octane enhancement business aided the segment.
Cash Flow
Adjusted distributable cash flow was $1,659.4 million, up from $1,628.8 million a year ago, and provided coverage of 1.7X. The partnership retained $2.6 billion of distributable cash flow in the December-end quarter. Free cash flow for the quarter was $1,723 million, significantly up from $1,020 million a year ago.
Financials
For fourth-quarter 2021, Enterprise’s total capital expenditure was $424.4 million.
As of Dec 31, 2021, its outstanding total debt principal was $29.8 billion. Enterprise’s consolidated liquidity amounted to $7.3 billion, up sequentially from $6.7 billion. The total liquidity amount included unrestricted cash on hand and available borrowing capacity under its revolving credit facility.
Outlook
For 2022, Enterprise expects growth capital spending of $1.5 billion. The partnership anticipates sustaining capital expenditure of $350 million. It currently has $2.2 billion worth of major capital projects under construction.
Zacks Rank & Stocks to Consider
The partnership currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Schlumberger Limited (SLB - Free Report) is a leading oilfield services company that provides services to oil and gas explorers and producers worldwide. Schlumberger recently reported fourth-quarter earnings of 41 cents per share (excluding charges and credits), beating the Zacks Consensus Estimate of 39 cents.
Schlumberger is expected to see an earnings growth of 56.3% in 2022. Despite the company’s $22 million severance payments through the December-end quarter, Schlumberger generated a free cash flow of $1.3 billion.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066,7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. Phillips 66 reported fourth-quarter adjusted earnings per share of $2.94, beating the Zacks Consensus Estimate of $1.93.
Phillips 66 is expected to see an earnings growth of 38.1% in 2022. PSX currently has a Zacks Style Score of A for Value, Growth and Momentum. For the fourth quarter, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago.