Natural gas pipeline operator Energy Transfer Partners LP (NYSE:ETP) reported second-quarter 2016 earnings of 10 cents per limited partner unit, which missed the Zacks Consensus Estimate of 19 cents. The bottom line also decreased from the year-ago quarter profit of 67 cents.
Quarterly revenues plunged more than 54% year over year to $5,289 million and missed the Zacks Consensus Estimate of $5,520 million.
Lower contribution from midstream businesses along with the deconsolidation of retail marketing primarily led to the underperformance.
Quarterly Cash Distribution
Last month, Energy Transfer Partners announced second-quarter distribution of $1.055 per unit ($4.22 per unit annualized), representing a year-over-year hike of 1.9%.
EBITDA & Operating Income
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $1,370 million, down from $1,488 million a year ago.
The partnership reported operating income of $715 million, lower than $888 million in second-quarter 2015.
Total Expense
Energy Transfer Partners reported total expenses of $4,574 million for second-quarter 2016, reflecting a year-over-year decline of 57%.
Distributable Cash Flow
Energy Transfer Partners’ distributable cash flow came in at $774 million, significantly lower than the prior-year quarter level of $957 million.
Capital Expenditure
Maintenance capital expenditure totaled $78 million compared with $100 million in the second quarter of 2015.
Balance Sheet
As of Jun 30, 2016, Energy Transfer Partners had long-term debt (less current maturities) of $27,950 million. Debt-to-capitalization ratio was about 51.1%.
ENERGY TRAN PTR Price, Consensus and EPS Surprise
Other News
On Aug 2, Energy Transfer Partners and Sunoco Logistics Partners LP (NYSE:SXL) signed an accord to divest 36.75% of the Bakken Pipeline project to MarEn Bakken Company LLC for a total consideration of $2 billion cash. It is to be noted that MarEn Bakken is jointly owned by Enbridge Energy Partners LP (NYSE:EEP) and Marathon Petroleum Corporation (NYSE:MPC) .
Zacks Rank & Other Stocks
Energy Transfer Partners currently carries a Zacks Rank #5 (Strong Sell).
SUNOCO LOGISTIC (SXL): Free Stock Analysis Report
ENBRIDGE EGY PT (EEP): Free Stock Analysis Report
ENERGY TRAN PTR (ETP): Free Stock Analysis Report
MARATHON PETROL (MPC): Free Stock Analysis Report
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