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Plains All American (PAA) Incurs Q2 Loss, Revenues Beat
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Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2016 adjusted loss of 12 cents per unit while the Zacks Consensus Estimate was earnings of 3 cents.
On a GAAP basis, loss per unit was 20 cents compared with 6 cents a year ago.
Total Revenue
In the second quarter, the partnership reported total revenue of $4,950 million, which beat the Zacks Consensus Estimate of $4,592 million by 7.8%.
However, revenues plunged around 25.7% year over year primarily due to lower contribution from the Supply & Logistics (26.8%) segment.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $4,804 million, down 25.5% year over year primarily due to lower purchases and related costs, field operating costs, and general and administrative expenses.
The partnership’s operating income plummeted 30.8% to $146 million from $211 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $461 million in the second quarter, down 5.1% year over year.
Interest expenses increased 6.5% to $114 million from $107 million a year ago.
Current assets as of Jun 30, 2016, were $3,603 million compared with $2,969 million as of Dec 31, 2015.
As of Jun 30, 2016, Plains All American had long-term debt of $9,486 million, compared with $10,375 million as of Dec 31, 2015. The long-term, debt-to-total book capitalization ratio at the end of the quarter was 51%, down from 57% at 2015 end.
Guidance
Plains All American issued third-quarter 2016 and full-year adjusted net income guidance in the range of $237–$299 million and $1,036–$1,160 million, respectively.
Plains All American expects third-quarter 2016 EBITDA in the range of $450 million to $500 million. The partnership raised its 2016 guidance for adjusted EBITDA to the range of $2,125 million to $2,225 million from an earlier range of $2,100 million to $2,250 million.
The partnership also provided 2016 expansion capital expenditure guidance in the $1,350–$1,500 million band. It projects maintenance capital expenditure in the range of $180–$200 million.
Peer Releases
PBF Logistics LP reported second-quarter 2016 earnings of 76 cents, beating the Zacks Consensus Estimate of 51 cents by 49%.
Boardwalk Pipeline Partners, LP’s second-quarter 2016 earnings of 26 cents beat the Zacks Consensus Estimate of 18 cents by 44.44%.
ONEOK Partners, L.P. reported second-quarter 2016 earnings of 54 cents per unit, beating the Zacks Consensus Estimate of 53 cents by 1.9%.
Zacks Rank
Plains All American currently holds a Zacks Rank #3 (Hold).
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Plains All American (PAA) Incurs Q2 Loss, Revenues Beat
Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2016 adjusted loss of 12 cents per unit while the Zacks Consensus Estimate was earnings of 3 cents.
On a GAAP basis, loss per unit was 20 cents compared with 6 cents a year ago.
Total Revenue
In the second quarter, the partnership reported total revenue of $4,950 million, which beat the Zacks Consensus Estimate of $4,592 million by 7.8%.
However, revenues plunged around 25.7% year over year primarily due to lower contribution from the Supply & Logistics (26.8%) segment.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $4,804 million, down 25.5% year over year primarily due to lower purchases and related costs, field operating costs, and general and administrative expenses.
The partnership’s operating income plummeted 30.8% to $146 million from $211 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $461 million in the second quarter, down 5.1% year over year.
Interest expenses increased 6.5% to $114 million from $107 million a year ago.
PLAINS ALL AMER Price, Consensus and EPS Surprise
PLAINS ALL AMER Price, Consensus and EPS Surprise | PLAINS ALL AMER Quote
Financial Update
Current assets as of Jun 30, 2016, were $3,603 million compared with $2,969 million as of Dec 31, 2015.
As of Jun 30, 2016, Plains All American had long-term debt of $9,486 million, compared with $10,375 million as of Dec 31, 2015. The long-term, debt-to-total book capitalization ratio at the end of the quarter was 51%, down from 57% at 2015 end.
Guidance
Plains All American issued third-quarter 2016 and full-year adjusted net income guidance in the range of $237–$299 million and $1,036–$1,160 million, respectively.
Plains All American expects third-quarter 2016 EBITDA in the range of $450 million to $500 million. The partnership raised its 2016 guidance for adjusted EBITDA to the range of $2,125 million to $2,225 million from an earlier range of $2,100 million to $2,250 million.
The partnership also provided 2016 expansion capital expenditure guidance in the $1,350–$1,500 million band. It projects maintenance capital expenditure in the range of $180–$200 million.
Peer Releases
PBF Logistics LP reported second-quarter 2016 earnings of 76 cents, beating the Zacks Consensus Estimate of 51 cents by 49%.
Boardwalk Pipeline Partners, LP’s second-quarter 2016 earnings of 26 cents beat the Zacks Consensus Estimate of 18 cents by 44.44%.
ONEOK Partners, L.P. reported second-quarter 2016 earnings of 54 cents per unit, beating the Zacks Consensus Estimate of 53 cents by 1.9%.
Zacks Rank
Plains All American currently holds a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>