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Energy Transfer (ET) to Report Q3 Earnings: What's in Store?

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Energy Transfer (ET) to Report Q3 Earnings: What's in Store?

Energy Transfer's (ET) third-quarter earnings are likely to be aided by higher processing volumes from its Rebel 2 processing plant and new pipelines.

Energy Transfer LP ET is expected to report third-quarter 2018 results on Nov 8, after the market closes. In the last reported quarter, the partnership delivered a negative earnings surprise of 28.26%.

Post closure of merger with Energy Transfer Partners, L.P., Energy Transfer Equity, L.P. changed its name to Energy Transfer LP.

Let’s see how things are shaping up prior to the announcement.

Factors to Consider

Energy Transfer’s third-quarter results will likely be aided by higher volumes from its joint venture, Old Ocean natural gas pipeline. In addition, Red Bluff Express pipeline, which came into service in May, is likely to boost its performance.

The 200-million cubic foot per day Rebel 2 processing plant, which started operation during the second quarter, is gradually ramping up volumes. The partnership will enjoy the benefit of increasing processing volumes from the same.

Energy Transfer  L.P. Price and EPS Surprise


Energy Transfer Equity, L.P. Price and EPS Surprise | Energy Transfer Equity, L.P. Quote

What Our Quantitative Model Predicts

Our proven model indicates that Energy Transfer is unlikely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates, and the company does not have the right mix.

You can uncover the best stocks to buy or sell before they’re reported with our our Earnings ESP Filter.

Earnings ESP: Its Earnings ESP is pegged at -4.33%. This is because the Most Accurate Estimate is currently pegged at 59 cents, lower than the Zacks Consensus Estimate of 62 cents.

Zacks Rank: Currently, Energy Transfer carries a Zacks Rank #3, which increases the predictive power of ESP. However, the partnership’s -4.33% ESP makes surprise prediction difficult.

Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies from the same industry that you may want to consider, as these have the right combination of elements to post an earnings beat in the upcoming releases:

TC Pipelines LP TCP is expected to release third-quarter results on Nov 9. It has an Earnings ESP of +13.29% and sports a Zacks Rank #1. You can the complete list of today’s Zacks #1 Rank stocks here.

Summit Midstream Partners, LP SMLP is scheduled to announce third-quarter results on Nov 7. It has an Earnings ESP of +64% and a Zacks Rank #1.

Plains All American Pipeline, L.P.  PAA is expected to release third-quarter results on Nov 6. It has an Earnings ESP of +6.28% and holds a Zacks Rank #3.

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Energy Transfer Equity, L.P. (ET) : Free Stock Analysis Report
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