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

·3 min read

Energy Transfer LP ET is scheduled to release second-quarter 2022 results on Aug 3, after market close. In the last reported quarter, the oil and gas midstream firm delivered a surprise of 19.3%.

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

Factors to Note

Energy Transfer’s pipelines are spread across every major production basin and its investments in high-quality growth projects are yielding results. The commissioning of the Permian Bridge Project and Ted Collins Link has ensured additional volumes in the pipelines, which are likely to have boosted earnings in the quarter.

Fee-based contracts of the firm are also likely to have boosted second-quarter earnings. The reductions of $6.3-billion outstanding debt in 2021 and $290 million in first-quarter 2022 are likely to have reduced its capital servicing costs in the second quarter and boosted earnings.

Expectation

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 29 cents per unit and $21.88 billion, respectively. The revenue estimate indicates an increase of 44.9% from the year-ago reported figure, while the earnings per unit estimate suggests 45% growth from the year-ago reported figure.

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: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Energy Transfer has a Zacks Rank #3. 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.

DT Midstream, Inc. DTM is likely to come up with an earnings beat when it reports second-quarter results on Aug 3, before market open. DT Midstream has an Earnings ESP of +1.32% and sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for DTM’s 2022 earnings per share suggests a year-over-year rise of 14.87%.

Occidental Petroleum OXY is likely to come up with an earnings beat when it reports second-quarter results on Aug 2, after market open. OXY has an Earnings ESP of +1.78% and a Zacks Rank #2 at present.

Occidental Petroleum’s long-term (three to five years) earnings growth is pegged at 12.36%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share suggests a year-over-year rise of 309.4%.

Delek US Holdings, Inc. DK is likely to come up with an earnings beat when it reports second-quarter results on Aug 4, before market open. Delek US Holdings has an Earnings ESP of +4.07% and sports a Zacks Rank #1 at present.

Delek US Holdings’ long-term (three to five years) earnings growth is pegged at 16.96%. The Zacks Consensus Estimate for DK’s 2022 earnings per share suggests a year-over-year rise of 353.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
 
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
 
Energy Transfer LP (ET) : Free Stock Analysis Report
 
DT Midstream, Inc. (DTM) : Free Stock Analysis Report
 
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