Plains All American (PAA) Q2 Earnings Top Estimates, Sales Lag
Plains All American Pipeline, L.P. PAA reported second-quarter 2023 adjusted earnings of 25 cents per unit, which surpassed the Zacks Consensus Estimate of 21 cents by 19%. The bottom line declined 16.7% from the year-ago quarter’s level of 30 cents.
The company reported GAAP earnings of 32 cents per unit compared with 22 cents in the year-ago period.
Total Revenues
Net sales of $11,602 million missed the Zacks Consensus Estimate of $16,842 million by 31.1%. The top line also declined 29.1% from the year-ago quarter’s figure of $16,359 million.
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote
Highlights of the Release
Total costs and expenses amounted to $11,224 million, down 29.6% year over year. The decrease was primarily due to a decline in purchases and related costs.
Net interest expenses totaled $95 million, down 4% from that recorded in the prior-year period.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $529 million, up 7.1% from $494 million in the year-ago quarter. This increase was due to higher tariff volumes and market-based opportunities in Canada.
Adjusted EBITDA for the NGL segment came in at $62 million, down 48.3% from the prior-year period’s $120 million. The fall in earnings was the cause of lower sales volumes and margins.
Financial Update
As of Jun 30, 2023, cash and cash equivalents were $933 million compared with $401 million as of Dec 31, 2022.
As of Jun 30, 2023, total long-term debt was $7,288 million compared with $7,287 million as of Dec 31, 2022.
As of Jun 30, 2023, long-term debt-to-total book capitalization was 41% compared with 42% on Dec 31, 2022.
Guidance
For 2023, Plains All American expects adjusted EBITDA to be at the high end of $2,450-$2,550 million. Free cash flow is anticipated to be $1,600 million.
Zacks Rank
PAA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Crestwood Equity Partners LP CEQP reported second-quarter 2023 adjusted earnings of $1.16 per unit, surpassing the Zacks Consensus Estimate of 26 cents by 346.2%. The bottom line jumped from the year-ago quarter’s profit of 14 cents per unit.
The Zacks Consensus Estimate for 2023 earnings per share (EPS) stands at $1.21, indicating a year-over-year improvement of 517.2%.
Enterprise Products Partners LP’s EPD second-quarter 2023 adjusted earnings per limited partner unit of 57 cents missed the Zacks Consensus Estimate of 59 cents by 3.4%.
The Zacks Consensus Estimate for EPD’s 2023 EPU stands at $2.52, indicating a year-over-year increase of 0%.
NuStar Energy L.P. NS reported second-quarter 2023 adjusted net income of 9 cents per unit, missing the Zacks Consensus Estimate of 15 cents by 40%.
The Zacks Consensus Estimate for NS’ 2023 EPU stands at $1.03, indicating a year-over-year increase of 12%.
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Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
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Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
