Enterprise Products Partners Misses Q2 Earnings Estimates

Enterprise Products Partners L.P. EPD reported second-quarter 2015 adjusted earnings per limited partner unit of 28 cents, which missed the Zacks Consensus Estimate of 32 cents. The bottom line was also lower than the year-ago quarterly earnings of 67 cents.
 

Quarterly distribution at Enterprise Products increased 5.6% year over year to 38 cents per common unit, or $1.52 per unit on an annualized basis. Distributable cash flow of $988 million provided coverage of 1.3x. The partnership retained $238 million in cash flow, thereby reducing its financing needs.

Revenues in the quarter decreased from $12,520.8 million in the year-ago quarter to $7,092.5 million and failed to meet the Zacks Consensus Estimate of $8,733 million by a wide margin.

Second Quarter Segmental Performance

Gross operating income in the NGL Pipeline & Services segment dropped from $680.9 million in the year-ago quarter to $650.6 million.

Onshore Natural Gas Pipeline and Services' gross operating income decreased from $203 million in the year-ago quarter to $191.4 million.

However, gross operating income from the Onshore Crude Oil Pipelines & Services segment shot up 28% year over year to $235.6 million.

Gross operating income from the Petrochemical & Refined Product Services segment improved to $181.3 million from the year-earlier level of $161.7 million.

Moreover, Enterprise's Offshore Pipelines & Services' gross operating income was $44.3 million, higher than $33.6 million a year ago.

Financials

During the quarter, the partnership spent $888.1 million. Outstanding total debt principal as of Jun 30, 2015, was $22.3 billion. Enterprise had consolidated liquidity of $5.6 billion, which comprised unrestricted cash on hand and available borrowing capacity.

 Zacks Rank & Other Stock Picks

Enterprise Products Partners currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, some better-ranked players in the energy sector are Western Gas Equity Partners, LP WGP, Tallgrass Energy Partners LP TEP and Vanguard Natural Resources LLC VNR. All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>