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Plains All American (PAA) Earnings & Revenues Miss in Q3
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Plains All American Pipeline, L.P. (PAA - Free Report) reported third-quarter 2017 adjusted earnings of 21 cents per unit, missing the Zacks Consensus Estimate of 22 cents by 4.5%. Reported earnings also fell short of the year-ago quarter figure of 39 cents by 46.2%.
Total Revenue
In the third quarter, the partnership reported total revenuesof $5,873 million, lagging the Zacks Consensus Estimate of $6,310 million by 6.9%.
However, quarterly revenues were up 13.6% from $5,170 million in the year-ago quarter.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,829 million, up 20.9% year over year from $4,821 million. This can be attributed to higher purchases and related costs.
The partnership’s operating income decreased 87.4% to $44 million from $349 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $489 million in the third quarter, up 5.6%.
Interest expenses increased 18.6% to $134 million from $113 million a year ago.
Segment Details
For three months ended, third-quarter 2017 Transportation segment adjusted EBITDA of $363 million increased by 18% over 2016 results driven by increased volumes from Permian Basin systems and Eagle Ford JV system.
For three months ended, third-quarter 2017 Facilities segment adjusted EBITDA of $182 million increased by 6% compared with2016 results on the back of higher fee-based revenues at certain NGL facilities.
For three months ended third-quarter 2017, Supply and Logistics segment reported adjusted loss of $56 million wider by $39 million compared with 2016 results.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Current assets as of Sep 30 were $4,015 million, compared with $4,272 million as of Dec 31, 2016.
As of Sep 30, Plains All American had long-term debt of $10,489 million, compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio at the end of the quarter, including short-term debt was 53%, down from 57% at the end of 2016.
Guidance
Plains All American has maintained 2017 full-year adjusted EBITDA guidance of $2,075 million mentioned in prior quarter.
The partnership has raised 2017 expansion capital expenditure projection of $1,050 million from a prior projection of $950 million. Maintenance capital expenditure guidance of $240 million was revised from a prior guidance of $210 million.
Peer Release
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2017 adjusted earnings of 43 cents per share, narrower than the Zacks Consensus Estimate of 45 cents.
Enable Midstream Partners, LP reported third-quarter 2017 adjusted earnings of 24 cents per share, beating the Zacks Consensus Estimate of 20 cents.
Buckeye Partners L.P. reported third-quarter 2017 adjusted earnings of 81 cents per share, narrower than the Zacks Consensus Estimate of 86 cents.
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Plains All American (PAA) Earnings & Revenues Miss in Q3
Plains All American Pipeline, L.P. (PAA - Free Report) reported third-quarter 2017 adjusted earnings of 21 cents per unit, missing the Zacks Consensus Estimate of 22 cents by 4.5%. Reported earnings also fell short of the year-ago quarter figure of 39 cents by 46.2%.
Total Revenue
In the third quarter, the partnership reported total revenuesof $5,873 million, lagging the Zacks Consensus Estimate of $6,310 million by 6.9%.
However, quarterly revenues were up 13.6% from $5,170 million in the year-ago quarter.
Operational Update
In the quarter under review, Plains All American’s total cost and expenses were $5,829 million, up 20.9% year over year from $4,821 million. This can be attributed to higher purchases and related costs.
The partnership’s operating income decreased 87.4% to $44 million from $349 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $489 million in the third quarter, up 5.6%.
Interest expenses increased 18.6% to $134 million from $113 million a year ago.
Segment Details
For three months ended, third-quarter 2017 Transportation segment adjusted EBITDA of $363 million increased by 18% over 2016 results driven by increased volumes from Permian Basin systems and Eagle Ford JV system.
For three months ended, third-quarter 2017 Facilities segment adjusted EBITDA of $182 million increased by 6% compared with2016 results on the back of higher fee-based revenues at certain NGL facilities.
For three months ended third-quarter 2017, Supply and Logistics segment reported adjusted loss of $56 million wider by $39 million compared with 2016 results.
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 Sep 30 were $4,015 million, compared with $4,272 million as of Dec 31, 2016.
As of Sep 30, Plains All American had long-term debt of $10,489 million, compared with $10,124 million as of Dec 31, 2016. The total long-term debt-to-total book capitalization ratio at the end of the quarter, including short-term debt was 53%, down from 57% at the end of 2016.
Guidance
Plains All American has maintained 2017 full-year adjusted EBITDA guidance of $2,075 million mentioned in prior quarter.
The partnership has raised 2017 expansion capital expenditure projection of $1,050 million from a prior projection of $950 million. Maintenance capital expenditure guidance of $240 million was revised from a prior guidance of $210 million.
Peer Release
ONEOK, Inc. (OKE - Free Report) reported third-quarter 2017 adjusted earnings of 43 cents per share, narrower than the Zacks Consensus Estimate of 45 cents.
Enable Midstream Partners, LP reported third-quarter 2017 adjusted earnings of 24 cents per share, beating the Zacks Consensus Estimate of 20 cents.
Buckeye Partners L.P. reported third-quarter 2017 adjusted earnings of 81 cents per share, narrower than the Zacks Consensus Estimate of 86 cents.
Zacks Rank
Plains All American currently carries 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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