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Crestwood Equity Partners LP declined 3.8% since it reported in-line first-quarter 2023 earnings on May 2. Declining contributions from Gathering and Processing North business unit are probably hurting the partnership.
CEQP reported first-quarter adjusted earnings of 15 cents per unit, in line with the Zacks Consensus Estimate. The bottom line reversed from the year-ago quarter’s loss of 4 cents per unit.
Total quarterly revenues declined to $1,263 million from $1,584 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,508 million.
Segmental Performance
Gathering and Processing North: The segment of Crestwood generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $132.8 million, down from $133.3 million in the year-ago quarter. Operating and maintenance expenses increased to $29.3 million from $23.7 million.
Total gas gathering volumes in the quarter were 326.3 million cubic feet per day (MMcf/d), down from 345.6 MMcf/d a year ago. Gathering volumes decreased in the Williston Basin and the Powder River Basin. Total processing volumes fell to 349.8 MMcf/d from the year-ago level of 374.4 MMcf/d.
Gathering and Processing South: The segment generated earnings of $41 million, up from $27.4 million reported in the year-ago quarter. Operating and maintenance expenses increased to $15.1 million from $6.7 million.
Total gas gathering volumes in the quarter were 494.5 MMcf/d, down from 662.9 MMcf/d a year ago. Total processing volumes increased to 402.6 MMcf/d from the year-ago level of 188 MMcf/d.
Storage and Logistics: The segment generated earnings of $36.3 million, increasing from $15.5 million in the year-ago quarter. Operating and maintenance expenses of $12.2 million jumped from the year-ago quarter’s $12 million.
Expenses
Total operating expenses and others increased to $170 million from $164.4 million in the year-ago period.
Operation and maintenance costs increased to $56.6 million from $42.4 million a year ago. However, general and administrative expenses declined to $31.6 million from $43.4 million.
Cash Flow
Distributable cash flow attributable to CEQP common in the first quarter was $103.6 million, down from $116.7 million in the year-ago period.
Free cash flow after distributions was $23.3 million deficit in the March quarter compared with $28.3 million in the year-ago period.
Balance Sheet
As of Mar 31, 2023, Crestwood had $8.6 million in cash. Total debt was $3,314.5 million at the first-quarter end.
Murphy USA is a well-known name for being a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.
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Crestwood (CEQP) Stock Falls 3.8% Despite In-Line Q1 Earnings
Crestwood Equity Partners LP declined 3.8% since it reported in-line first-quarter 2023 earnings on May 2. Declining contributions from Gathering and Processing North business unit are probably hurting the partnership.
CEQP reported first-quarter adjusted earnings of 15 cents per unit, in line with the Zacks Consensus Estimate. The bottom line reversed from the year-ago quarter’s loss of 4 cents per unit.
Total quarterly revenues declined to $1,263 million from $1,584 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,508 million.
Segmental Performance
Gathering and Processing North: The segment of Crestwood generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $132.8 million, down from $133.3 million in the year-ago quarter. Operating and maintenance expenses increased to $29.3 million from $23.7 million.
Total gas gathering volumes in the quarter were 326.3 million cubic feet per day (MMcf/d), down from 345.6 MMcf/d a year ago. Gathering volumes decreased in the Williston Basin and the Powder River Basin. Total processing volumes fell to 349.8 MMcf/d from the year-ago level of 374.4 MMcf/d.
Gathering and Processing South: The segment generated earnings of $41 million, up from $27.4 million reported in the year-ago quarter. Operating and maintenance expenses increased to $15.1 million from $6.7 million.
Total gas gathering volumes in the quarter were 494.5 MMcf/d, down from 662.9 MMcf/d a year ago. Total processing volumes increased to 402.6 MMcf/d from the year-ago level of 188 MMcf/d.
Storage and Logistics: The segment generated earnings of $36.3 million, increasing from $15.5 million in the year-ago quarter. Operating and maintenance expenses of $12.2 million jumped from the year-ago quarter’s $12 million.
Expenses
Total operating expenses and others increased to $170 million from $164.4 million in the year-ago period.
Operation and maintenance costs increased to $56.6 million from $42.4 million a year ago. However, general and administrative expenses declined to $31.6 million from $43.4 million.
Cash Flow
Distributable cash flow attributable to CEQP common in the first quarter was $103.6 million, down from $116.7 million in the year-ago period.
Free cash flow after distributions was $23.3 million deficit in the March quarter compared with $28.3 million in the year-ago period.
Balance Sheet
As of Mar 31, 2023, Crestwood had $8.6 million in cash. Total debt was $3,314.5 million at the first-quarter end.
Zacks Rank & Stocks to Consider
Currently, Crestwood carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Murphy USA Inc. (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Cactus, Inc. (WHD - Free Report) . While Murphy USA carries a Zacks Rank #2 (Buy), Sunoco and Cactus sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a well-known name for being a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco has a stable business model while distributing motor fuel to approximately 10,000 convenience stores. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Cactus has been aiding its clients in fast-tracking their well drilling and completion activities. The company has also been enabling lower operator emissions per barrel of production. Thus, there has been a significantly lower carbon intensity per well.