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Energy Transfer (ET) to Post Q2 Earnings: What's in Store?

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Energy Transfer LP ET is scheduled to release second-quarter 2021 results on Aug 3. In the last reported quarter, this oil and gas midstream firm delivered an earnings surprise of 338.5%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Note

Since Energy Transfer has a diverse business model, and its pipelines are strategically located and spread across every major production basin, a gradual increase in hydrocarbon production must have boosted the demand for its services and thereby earnings.

The firm’s second-quarter earnings are likely to have benefited predominantly from fee-based contracts with drillers. Energy Transfer’s second-quarter earnings are also expected to have gained from the completion of organic projects at the end of December 2020 and first-half 2021, which in turn increased pipeline transportation capacity.

Expectation

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 24 cents per unit and $15.54 billion, respectively. Revenue and earnings per unit estimates indicate an increase of 111.7% and 84.6%, respectively, from the year-ago reported figures.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you see below.

Energy Transfer LP Price and EPS Surprise

Energy Transfer LP Price and EPS Surprise
Energy Transfer LP Price and EPS Surprise

Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote

Earnings ESP: It has an Earnings ESP of -17.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Energy Transfer sports a Zacks Rank #1.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Select Energy Services, Inc. WTTR is slated to release second-quarter 2021 numbers on Aug 4. It has an Earnings ESP of +4.35% and a Zacks Rank #3.

Targa Resources Corp. TRGP is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +6.73% and a Zacks Rank #3.

Cimarex Energy XEC is slated to release second-quarter 2021 numbers on Aug 5. It has an Earnings ESP of +0.66% and a Zacks Rank #3.


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Cimarex Energy Co (XEC) : Free Stock Analysis Report

Energy Transfer LP (ET) : Free Stock Analysis Report

Targa Resources, Inc. (TRGP) : Free Stock Analysis Report

SELECT EGY SVCS (WTTR) : Free Stock Analysis Report

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