Why Is Crestwood Equity Partners LP (CEQP) Up 5.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Crestwood Equity Partners LP (CEQP). Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Crestwood Equity Partners LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Crestwood Q1 Earnings In Line, Sales Miss
Crestwood Equity Partnersreported first-quarter adjusted earnings of 15 cents per unit, in line with the Zacks Consensus Estimate. The bottom line swung from the year-ago quarter’s loss of 4 cents per unit.
Total quarterly revenues declined to $1,263 million from $1,584 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,508 million.
Segmental Performance
Gathering and Processing North: The segment of Crestwood generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $132.8 million, down from $133.3 million in the year-ago quarter. Operating and maintenance expenses increased to $29.3 million from $23.7 million.
Total gas gathering volumes in the quarter were 326.3 million cubic feet per day (MMcf/d), down from 345.6 MMcf/d a year ago. Gathering volumes decreased in the Williston Basin and the Powder River Basin. Total processing volumes fell to 349.8 MMcf/d from the year-ago level of 374.4 MMcf/d.
Gathering and Processing South: The segment generated earnings of $41 million, up from $27.4 million reported in the year-ago quarter. Operating and maintenance expenses increased to $15.1 million from $6.7 million.
Total gas gathering volumes in the quarter were 494.5 MMcf/d, down from 662.9 MMcf/d a year ago. Total processing volumes increased to 402.6 MMcf/d from the year-ago level of 188 MMcf/d.
Storage and Logistics: The segment generated earnings of $36.3 million, increasing from $15.5 million in the year-ago quarter. Operating and maintenance expenses of $12.2 million jumped from the year-ago quarter’s $12 million.
Expenses
Total operating expenses and others increased to $170 million from $164.4 million in the year-ago period.
Operation and maintenance costs increased to $56.6 million from $42.4 million a year ago. However, general and administrative expenses declined to $31.6 million from $43.4 million.
Cash Flow
Distributable cash flow attributable to CEQP common in the first quarter was $103.6 million, down from $116.7 million in the year-ago period.
Free cash flow after distributions was $23.3 million deficit in the March quarter compared with $28.3 million in the year-ago period.
Balance Sheet
As of Mar 31, 2023, Crestwood had $8.6 million in cash. Total debt was $3,314.5 million at the first-quarter end.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 19.05% due to these changes.
VGM Scores
At this time, Crestwood Equity Partners LP has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Crestwood Equity Partners LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
