Research Desk Line-up: Adams Resources & Energy Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Andeavor (NYSE: ANDV), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ANDV, following the Company's release of its second quarter fiscal 2017 financial results on August 07, 2017. The oil refiner outperformed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Oil & Gas Refining & Marketing industry. Pro-TD has currently selected Adams Resources & Energy, Inc. (NYSE American: AE) for due-diligence and potential coverage as the Company announced on August 08, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Adams Resources & Energy when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ANDV; also brushing on AE. With the links below you can directly download the report of your stock of interest free of charge at:
For the quarter ended June 30, 2017, Andeavor reported revenues of $7.85 billion compared to revenue of $6.29 billion in Q2 2016. The Company's revenue numbers fell short of analysts' expectations of $8.09 billion.
Andeavor reported earnings of $40 million, or $0.31 per diluted share, for Q2 2017 compared to $418 million, or $3.47 per diluted share, in Q2 2016. The Company's reported quarter consolidated net earnings were $87 million compared to $449 million for the prior year's corresponding quarter. Andeavor's earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, were $1.96 per share and exceeded Wall Street's expectations of $1.63 per share.
For Q2 2017, Andeavor's EBITDA was $470 million compared to $956 million in Q2 2016. The Company's reported quarter results included a pre-tax expense of $209 million related to lower of cost or market (LCM) inventory adjustment, pre-tax acquisition and integration costs of $124 million related to the Western Refining (Western) acquisition, additional tax expense of $12 million related to non-deductible acquisition costs, and a net pre-tax gain of $20 million related to Andeavor Logistics LP (ANDX).
Andeavor's Segment Results
During Q2 2017, the Marketing segment's operating income was $236 million, segment's EBITDA was $250 million and fuel margins were $0.134 per gallon compared to operating income of $161 million, segment's EBITDA of $173 million, and fuel margins of $0.105 per gallon in Q2 2016. Andeavor's Retail and Branded fuel margins improved to $0.232 per gallon from $0.198 per gallon in Q2 2016, due to favorable market conditions driven by strong PADD 5 gasoline demand. Unbranded fuel margins were $0.031 per gallon compared to $0.07 per gallon in the year ago same period.
The Network of branded stores, increased by 627 stores, or 26%, to 3,073, primarily driven by the additional stores from the Western's acquisition and the continued execution of the Company`s organic growth plan.
For Q2 2017, the Logistics segment's operating income increased to $167 million from $118 million in Q2 2016 and segment's EBITDA increased to $238 million from $167 million in the year ago comparable period. The increase in segment's operating income and segment's EBITDA was attributed to contributions from the North Dakota Gathering and Processing Assets acquisition, strong refinery utilization, and product demand generating higher throughput at the Company`s California marine terminals, contributions from the Northern California Terminalling and storage assets, and Alaska Storage and Terminalling assets acquisitions. The results were also supported by one month of results from the Company`s Permian and Northern Great Plains logistics and wholesale operations added as part of the Western acquisition.
The Refining segment's operating income was $45 million for Q2 2017 compared to operating income of $527 million in Q2 2016. The segment's EBITDA was $206 million in the reported quarter compared to $697 million in the year ago same period. Andeavor's Q2 2017 segment's operating income and segment's EBITDA included a pre-tax expense of $209 million related to a LCM inventory adjustment.
Balance Sheet and Cash Flow
Andeavor ended Q2 2017 with $1.1 billion in cash and cash equivalents. This was down from $3.3 billion at the end of 2016 primarily due to the closing of the Western acquisition and Andeavor Logistics` acquisition of the North Dakota Gathering and Processing Assets. The Company had $2.4 billion of availability under its revolving credit facility. Total debt, net of unamortized issuance costs, was $7.6 billion, or 38% of total capitalization as of June 30, 2017. Excluding Andeavor Logistics and Western Refining Logistics, L.P. (WNRL) debt and equity, Andeavor's total debt was $3.5 billion, or 28% of total capitalization.
For Q2 2017, capital spending totaled $218 million, $45 million for Andeavor Logistics and $4 million related to WNRL for June 2017. Turnaround expenditures for the second quarter were $196 million. The Company continues to expect 2017 capital expenditures of approximately $1.35 billion, consisting of approximately $1.0 billion at Andeavor, $325 million at Andeavor Logistics, and $25 million at WNRL. Turnaround expenditures are estimated to be $485 million for FY17.
Andeavor repurchased 1.6 million shares for approximately $148 million in Q2 2017. As of August 08, 2017, the Company has executed approximately 4.2 million of share repurchases for approximately $400 million and has $1.7 billion remaining under its previously approved share repurchase programs. Andeavor on August 08, 2017, announced that its Board of Directors has increased the quarterly cash dividend by 7.3% to $0.59 per share, payable on September 15, 2017, to all holders of record as of August 31, 2017.
Andeavor's share price finished last Friday's trading session at $95.48, marginally up 0.45%. A total volume of 1.01 million shares have exchanged hands. The Company's stock price rallied 14.40% in the last three months, 8.09% in the past six months, and 28.85% in the previous twelve months. Additionally, the stock gained 9.18% since the start of the year. Shares of the Company have a PE ratio of 33.93 and have a dividend yield of 2.47%. The stock currently has a market cap of $14.91 billion.
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