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Energy Transfer Partners (ETP) Q3 Earnings Miss Estimates

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Natural gas pipeline operator Energy Transfer Partners LP reported third-quarter 2016 earnings of 14 cents per limited partner unit, which missed the Zacks Consensus Estimate of 26 cents. The bottom line, however, increased from the year-ago quarter profit of 10 cents per limited partner unit.

 

Quarterly revenues declined more than 16% year over year to $5,531 million and also lagged the Zacks Consensus Estimate of $5,562 million.  

Quarterly Cash Distribution

Last month, Energy Transfer Partners announced third-quarter distribution of $1.055 per unit ($4.22 per unit annualized). This cash distribution remained unchanged on a sequential basis.

EBITDA & Operating Income

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,390 million, down from $1,500 million a year ago.

The partnership reported operating income of $638 million as against $576 million in third-quarter 2015.

Total Expense

Energy Transfer Partners reported total expense of $4,893 million in third-quarter 2016, downb 18.8% year over year.   

Distributable Cash Flow

 

Energy Transfer Partners’ distributable cash flow of $718 million was significantly lower than the prior-year quarter level of $727 million.

Capital Expenditure

Maintenance capital expenditure totaled $97 million compared with $124 million in the third quarter of 2015.

Balance Sheet

As of Sep 30, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $29,182 million. Debt-to-capitalization ratio was about 52%.  

ENERGY TRAN PTR Price, Consensus and EPS Surprise

 

Zacks Rank & Stocks to Consider

Energy Transfer Partners currently carries a Zacks Rank #3 (Hold).

Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Ultra Petroleum Corp. and McDermott International Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.

In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.

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