Energy Transfer LP ET reported first-quarter 2020 adjusted earnings of 18 cents per unit, which missed the Zacks Consensus Estimate of 32 cents by 43.8%. The bottom line was down 51.4% from the year-ago reported figure.
Total revenues in the first quarter amounted to $11,627 million, which missed the Zacks Consensus Estimate of $14,022 million by 17.1%.
Revenues also declined 11.4% from $13,121 million reported in the year-ago quarter. The year-over-year decline in revenues was due to lower contribution from natural gas, NGL and refined product sales.
Energy Transfer LP Price, Consensus and EPS Surprise
Energy Transfer LP price-consensus-eps-surprise-chart | Energy Transfer LP Quote
Highlights of the Release
In the quarter under review, Energy Transfer’s total costs and expenses were $11,566 million, up 2.8% year over year. The increase was caused by higher operating expenses, depreciation and amortization costs, as well as selling, general and administrative expenses.
The firm’s operating income dropped to $61 million from $1,865 million in the prior-year quarter. Lower revenues and higher impairment loss adversely impacted operating income in the reported quarter.
Interest expenses increased 2% year over year to $602 million.
As of Mar 31, 2020, cash and cash equivalents were $196 million compared with $291 million on Dec 31, 2019.
As of Mar 31, 2020, the firm had a long-term debt of $50,299 million compared with $51,028 million on Dec 31, 2019.
Cash provided from operating activities in the first quarter was $1,816 million, in line with the year-ago period.
Taking into consideration the current economic condition and its impact on demand, the firm has decided to lower 2020 growth capital outlook by $400 million to $3.6 billion. The firm might lower its growth capital expenditure guidance for 2020 to the range of $300-$400 million, depending on the prevailing situation.
Nearly 70% of the planned growth capital expenditure will be directed toward projects that are 60% or more complete and will come in service in 2020 or early 2021.
Energy Transfer LP currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plains All American Pipeline, L.P. PAA, currently carrying a Zacks Rank #3 (Hold), reported first-quarter 2020 adjusted earnings of 55 cents per unit, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
Delek Logistics Partners DKL, currently holding a Zacks Rank #2 (Buy), reported first-quarter 2020 adjusted earnings of 76 cents per unit, which beat the Zacks Consensus Estimate of 59 cents by 28.8%.
Sempra Energy SRE currently holding a Zacks Rank #2, reported first-quarter 2020 adjusted earnings of $3.08 per share, which beat the Zacks Consensus Estimate of $2.32 by 32.8%.
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