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Energy Transfer (ET) to Post Q4 Earnings: Here's What to Expect

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Energy Transfer LP (ET - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 14, after market close. The firm delivered an earnings surprise of 6.9% in the last reported quarter.

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

Factors to Consider

Energy Transfer’s fourth-quarter earnings are likely to have continued to benefit from stable demand from a strong customer base and fee-based contracts. The firm also continues to expand Midstream operations through the inorganic route, which is likely to have contributed to ET’s earnings.

In November 2023, Energy Transfer completed the acquisition of Crestwood Equity Partners. This transaction has added strategic assets, extending the firm’s footprint to the Williston and Delaware basins while providing entry into the Powder River Basin. This is expected to have boosted the firm’s fourth-quarter performance.

Midstream gathered volumes, Natural Gas Liquids (NGL) transportation and fractionation volumes continue to remain strong. The Crestwood acquisition has enhanced ET’s downstream fractionation capacity at Mont Belvieu. These strong volumes are expected to have benefited the firm’s quarterly performance.

Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at 29 cents per unit, implying a year-over-year decline of 14.7%. The consensus mark for revenues is pinned at $23.59 billion, indicating a year-over-year increase of 15%.

The Zacks Consensus Estimate for Midstream gathered volumes is pinned at 20,441 BBtu/d, up 5.2% year over year. The Zacks Consensus Estimate for Midstream NGL produced is pegged at 869 MBbls/d, up 6.9% from the prior-year quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model conclusively predicts 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 odds of an earnings beat, which is the case here as you will 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: ET’s Earnings ESP is +0.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, the firm sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other players from the same sector that too have the right combination of elements to come up with an earnings beat this reporting cycle.

PBF Energy (PBF - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +22.22% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PBF’s fourth-quarter earnings is pegged at 8 cents per share. It delivered an average earnings surprise of 9.3% in the last four quarters.

Cheniere Energy (LNG - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 22, before market open. It has an Earnings ESP of +5.55% and a Zacks Rank #3 at present.

The company’s long-term (three to five years) earnings growth rate is 25.77%. It delivered an average earnings surprise of 92% in the last four quarters.

ONEOK (OKE - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 26, after market close. It has an Earnings ESP of +1.63% and a Zacks Rank #3 at present.

OKE’s long-term earnings growth rate is 7.64%. The company delivered an average earnings surprise of 6% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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