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Plains All American (PAA) Lags Q4 Earnings, Issues Outlook
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Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2016 adjusted earnings of 14 cents per unit, missing the Zacks Consensus Estimate of 49 cents by 71.4%.
Quarterly earnings also fell 41.7% from the year-ago tally of 24 cents.
Total Revenue
In the fourth quarter, the partnership reported total revenue of $5,952 million, which missed the Zacks Consensus Estimate of $6,100 million by 2.4%.
However, revenues, however, surged around 19.1% year over year primarily driven by higher contribution from Supply & Logistics (up 20.4%) and Facilities (up 11.1%).
Full-year revenues came in at $20,182 million, missing the Zacks Consensus Estimate of $20,480 million by 1.5%. Revenues also decreased 12.8% from the year-ago level of $23,152 million.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,734 million, up 23.3% year over year primarily due to higher purchases and related costs, and depreciation and amortization.
The partnership’s operating income fell 36.6% to $218 million from $344 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $600 million in the fourth quarter, up 4.4%.
Interest expenses increased 14.4% to $127 million from $111 million a year ago.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Current assets as of Dec 31, 2016 were $4,272 million, compared with $2,969 million as of Dec 31, 2015.
As of Dec 31, 2016, Plains All American had long-term debt of $10,124 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 year was 53%, down from 57% at 2015 end.
Guidance
Plains All American issued its 2017 full-year adjusted EBITDA guidance of approximately $2,360 million.
The partnership also provided its 2017 expansion capital expenditure projection of $800 million and maintenance capital expenditure guidance of $180 million.
Upcoming Peer Releases
Enable Midstream Partners, LP is slated to report fourth-quarter 2016 earnings on Feb 21. The Zacks Consensus Estimate stands at 17 cents.
Buckeye Partners, L.P. is scheduled to report fourth-quarter 2016 earnings on Feb 10. The Zacks Consensus Estimate stands at $1.05.
Sunoco Logistics Partners L.P. is scheduled to report fourth-quarter 2016 earnings on Feb 22. The Zacks Consensus Estimate stands at 22 cents.
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Plains All American (PAA) Lags Q4 Earnings, Issues Outlook
Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2016 adjusted earnings of 14 cents per unit, missing the Zacks Consensus Estimate of 49 cents by 71.4%.
Quarterly earnings also fell 41.7% from the year-ago tally of 24 cents.
Total Revenue
In the fourth quarter, the partnership reported total revenue of $5,952 million, which missed the Zacks Consensus Estimate of $6,100 million by 2.4%.
However, revenues, however, surged around 19.1% year over year primarily driven by higher contribution from Supply & Logistics (up 20.4%) and Facilities (up 11.1%).
Full-year revenues came in at $20,182 million, missing the Zacks Consensus Estimate of $20,480 million by 1.5%. Revenues also decreased 12.8% from the year-ago level of $23,152 million.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,734 million, up 23.3% year over year primarily due to higher purchases and related costs, and depreciation and amortization.
The partnership’s operating income fell 36.6% to $218 million from $344 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $600 million in the fourth quarter, up 4.4%.
Interest expenses increased 14.4% to $127 million from $111 million a year ago.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise | Plains All American Pipeline, L.P. Quote
Financial Update
Current assets as of Dec 31, 2016 were $4,272 million, compared with $2,969 million as of Dec 31, 2015.
As of Dec 31, 2016, Plains All American had long-term debt of $10,124 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 year was 53%, down from 57% at 2015 end.
Guidance
Plains All American issued its 2017 full-year adjusted EBITDA guidance of approximately $2,360 million.
The partnership also provided its 2017 expansion capital expenditure projection of $800 million and maintenance capital expenditure guidance of $180 million.
Upcoming Peer Releases
Enable Midstream Partners, LP is slated to report fourth-quarter 2016 earnings on Feb 21. The Zacks Consensus Estimate stands at 17 cents.
Buckeye Partners, L.P. is scheduled to report fourth-quarter 2016 earnings on Feb 10. The Zacks Consensus Estimate stands at $1.05.
Sunoco Logistics Partners L.P. is scheduled to report fourth-quarter 2016 earnings on Feb 22. The Zacks Consensus Estimate stands at 22 cents.
Zacks Rank
Plains All American currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>