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Plains All American (PAA) Q2 Earnings Lag Estimates, Sales Beat
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Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2024 adjusted earnings of 31 cents per unit, which missed the Zacks Consensus Estimate of 33 cents by 6.1%. However, the bottom line improved 24% from 25 cents in the year-ago quarter.
The company reported GAAP earnings of 26 cents per unit compared with 32 cents in the year-ago period.
Total Revenues
Net sales of $12.93 billion beat the Zacks Consensus Estimate of $12.91 billion by 0.2%. The top line also increased 11.5% from the year-ago quarter’s figure of $11.6 billion.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Total costs and expenses amounted to $12.56 billion, up 11.9% year over year. The increase was primarily due to an increase in purchases and related costs.
Net interest expenses totaled $111 million, up 16.8% from the prior-year quarter’s level.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $576 million, up 9% from the year-ago quarter’s figure. This increase was due to higher tariff volumes on our pipelines, tariff escalations and contributions from acquisitions.
Adjusted EBITDA for the NGL segment came in at $94 million, up 52% from the prior-year period’s figure. This was due to turnarounds impacting sales volumes in the second quarter of 2023 and incremental margins from iso-to-normal butane spread benefits in the second quarter of 2024.
Financial Update
As of Jun 30, 2024, cash and cash equivalents were $553 million compared with $450 million as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt was $7.21 billion compared with $7.31 billion as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt-to-total book capitalization was 41%, which remained unchanged from the figure recorded as of Dec 31, 2023.
Guidance
For 2024, Plains All American has raised its expectation for adjusted EBITDA to the range of $2.725-$2.775 billion from the previously predicted band of $2.625-$2.725 billion. Adjusted free cash flow is anticipated to be $1.55 billion (excluding changes in assets and liabilities).
PAA remains focused on disciplined capital investments, anticipating full-year 2024 investment and maintenance capital of $375 million and $250 million, respectively.
NextEra Energy Partners, LP (NEP - Free Report) recorded second-quarter 2024 operating earnings of 66 cents per unit, which missed the Zacks Consensus Estimate of 70 cents by 5.7%.
The Zacks Consensus Estimate for 2024 earnings is pegged at $1.81 per share, which implies a year-over-year increase of 432.4%. The Zacks Consensus Estimate for sales is pegged at $1.25 billion.
CNX Resources Corporation (CNX - Free Report) reported second-quarter 2024 operating earnings of 36 cents per share, which beat the Zacks Consensus Estimate of 27 cents by 33.3%.
The consensus estimate for 2024 EPS is pegged at $1.41, which calls for a year-over-year decrease of 25.8%. It delivered a trailing four-quarter average earnings surprise of 61.2%.
Arch Resources Inc. (ARCH - Free Report) reported second-quarter 2024 operating EPS of 81 cents, which missed the Zacks Consensus Estimate of $1.31 by 38.2%.
The consensus estimate for 2024 EPS is pegged at $13.7, which suggests a year-over-year decrease of 43.4%. The consensus mark for 2024 sales is pegged at $2.64 billion.
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Plains All American (PAA) Q2 Earnings Lag Estimates, Sales Beat
Plains All American Pipeline, L.P. (PAA - Free Report) reported second-quarter 2024 adjusted earnings of 31 cents per unit, which missed the Zacks Consensus Estimate of 33 cents by 6.1%. However, the bottom line improved 24% from 25 cents in the year-ago quarter.
The company reported GAAP earnings of 26 cents per unit compared with 32 cents in the year-ago period.
Total Revenues
Net sales of $12.93 billion beat the Zacks Consensus Estimate of $12.91 billion by 0.2%. The top line also increased 11.5% from the year-ago quarter’s figure of $11.6 billion.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote
Highlights of the Release
Total costs and expenses amounted to $12.56 billion, up 11.9% year over year. The increase was primarily due to an increase in purchases and related costs.
Net interest expenses totaled $111 million, up 16.8% from the prior-year quarter’s level.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $576 million, up 9% from the year-ago quarter’s figure. This increase was due to higher tariff volumes on our pipelines, tariff escalations and contributions from acquisitions.
Adjusted EBITDA for the NGL segment came in at $94 million, up 52% from the prior-year period’s figure. This was due to turnarounds impacting sales volumes in the second quarter of 2023 and incremental margins from iso-to-normal butane spread benefits in the second quarter of 2024.
Financial Update
As of Jun 30, 2024, cash and cash equivalents were $553 million compared with $450 million as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt was $7.21 billion compared with $7.31 billion as of Dec 31, 2023.
As of Jun 30, 2024, long-term debt-to-total book capitalization was 41%, which remained unchanged from the figure recorded as of Dec 31, 2023.
Guidance
For 2024, Plains All American has raised its expectation for adjusted EBITDA to the range of $2.725-$2.775 billion from the previously predicted band of $2.625-$2.725 billion. Adjusted free cash flow is anticipated to be $1.55 billion (excluding changes in assets and liabilities).
PAA remains focused on disciplined capital investments, anticipating full-year 2024 investment and maintenance capital of $375 million and $250 million, respectively.
Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
NextEra Energy Partners, LP (NEP - Free Report) recorded second-quarter 2024 operating earnings of 66 cents per unit, which missed the Zacks Consensus Estimate of 70 cents by 5.7%.
The Zacks Consensus Estimate for 2024 earnings is pegged at $1.81 per share, which implies a year-over-year increase of 432.4%. The Zacks Consensus Estimate for sales is pegged at $1.25 billion.
CNX Resources Corporation (CNX - Free Report) reported second-quarter 2024 operating earnings of 36 cents per share, which beat the Zacks Consensus Estimate of 27 cents by 33.3%.
The consensus estimate for 2024 EPS is pegged at $1.41, which calls for a year-over-year decrease of 25.8%. It delivered a trailing four-quarter average earnings surprise of 61.2%.
Arch Resources Inc. (ARCH - Free Report) reported second-quarter 2024 operating EPS of 81 cents, which missed the Zacks Consensus Estimate of $1.31 by 38.2%.
The consensus estimate for 2024 EPS is pegged at $13.7, which suggests a year-over-year decrease of 43.4%. The consensus mark for 2024 sales is pegged at $2.64 billion.