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Energy Transfer Partners Beats on Q2 Earnings and Revenues

Zacks Equity Research

Natural gas pipeline operator Energy Transfer Partners LP (ETP) reported better-than-expected second-quarter 2014 financial results, thanks to robust performance by almost all its business segments.

Following the favorable results, the unit price rose about 2% in the after-hours trading session.

Energy Transfer Partners reported earnings of 69 cents per limited partner unit, higher than the year-ago profit of 46 cents per unit. The bottom line also beat the Zacks Consensus Estimate by a penny.

Energy Transfer Partners, L P - Earnings Surprise | FindTheBest

Quarterly revenues increased 12.8% year over year to $13,029 million and also surpassed the Zacks Consensus Estimate of $12,062 million.

Quarterly Cash Distribution

Last month, Energy Transfer Partners announced second-quarter distribution of 95.5 cents per unit ($3.82 per unit annualized), representing a sequential increase of about 2%. The distribution is payable on Aug 14, 2014, to unitholders of record as of Aug 4.    

EBITDA & Operating Income

Adjusted earnings before interest, taxes, depreciation and amortization (:EBITDA) for the quarter were $1,169 million, up from $1,069 million in the year-ago quarter.

The partnership reported an operating income of $736 million, up 16.5% from $632 million in second-quarter 2013.

Total Expense

Energy Transfer Partners reported total cost of $12,293 million for second-quarter 2014, reflecting a year-over-year increase of 12.6%.

Distributable Cash Flow

Energy Transfer Partners recorded distributable cash flow of $538 million, significantly higher than the prior-year quarter level of $483 million.

Capital Expenditure

Maintenance capital expenditure totaled $59 million, compared with $121 million in the second quarter of 2013.

Balance Sheet

As of Jun 30, 2014, Energy Transfer Partners had long-term debt (less current maturities) of $16,220 million. The debt-to-capitalization ratio was 50.7%.

Zacks Rank

Energy Transfer Partners currently has a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the same industry like Magellan Midstream Partners LP (MMP), Atlas Pipeline Partners, L.P. (APL) and Kinder Morgan Management LLC (KMR). All these stocks have a Zacks Rank #2 (Buy).

Read the Full Research Report on MMP
Read the Full Research Report on ETP
Read the Full Research Report on APL
Read the Full Research Report on KMR

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