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Phillips 66 Partners (PSXP) Earnings Miss Estimates in Q3

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Phillips 66 Partners LP’s third-quarter 2019 earnings per unit came in at 92 cents, missing the Zacks Consensus Estimate of $1 and deteriorating from the year-ago $1.10. A decline in crude oil transported volumes led to the underperformance.

Revenues of $411 million rose from $384 million in the year-ago quarter and also beat the Zacks Consensus Estimate of $407 million, thanks to higher terminal throughput volumes.

Operating Information

The partnership provides services through Pipelines, Terminals and Storage, and Processing & Other activities.

Pipeline: In third-quarter 2019, the partnership generated revenues of $121 million, down marginally from $123 million a year ago owing to a drop in transported crude oil volumes.

Terminals: The partnership generated $41 million, reflecting an improvement from $37 million a year ago, thanks to higher throughput volumes of crude oil and refined petroleum products.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $108 million, up from $105 million in the year-ago quarter.

Operating and Maintenance Expenses

In the September quarter of 2019, the company reported operating and maintenance expenses of $91 million, showing a rise from $84 million in the year-ago period.

Balance Sheet

As of Sep 30, 2019, the partnership recorded cash and cash equivalents of $655 million. Also, total debt at the end of the quarter under review was $3,815 million.

Zacks Rank & Other Stocks to Consider

Phillips 66 Partners currently carries a Zacks Rank #2 (Buy). Other prospective players in the energy space are Crescent Point Energy Corp. , Pembina Pipeline Corporation (PBA - Free Report) and Matrix Service Company (MTRX - Free Report) . While Crescent Point and Pembina Pipeline sport a Zacks Rank #1 (Strong Buy), Matrix Service carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.     

Crescent beat the Zacks Consensus Estimate in three of the prior four quarters, the average positive earnings surprise being 235.1%.

Pembina Pipeline has posted an average positive earnings surprise of 28.1% for the past four quarters.

Matrix Service has managed to beat the Zacks Consensus Estimate for earnings in three of the past four quarters.

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