Energy Transfer LP ET is scheduled to release second-quarter 2023 results on Aug 2, after market close. The firm delivered a negative earnings surprise of 3.03% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
Energy Transfer’s acquisition of Lotus Midstream Operations LLC assets in the second quarter is likely to have boosted earnings and expanded the firm’s operations in the Permian Basin. The buyout is also expected to have provided increased connectivity for its crude oil transportation and storage businesses.
Ongoing expansion of ET’s Midstream operations through the inorganic route is likely to have contributed to the company’s second-quarter earnings. Energy Transfer is expected to have benefited from strong export volumes from its Nederland Terminal.
Energy Transfer’s earnings is likely to have benefited from stable demand from strong customer base and fee-based contracts. Energy Transfer’s quarterly results are expected to benefit from higher midstream gathered volumes and NGL production due to increased producer activity in Permian regions.
Expectations
The Zacks Consensus Estimate for earnings is pegged at 30 cents per unit, implying a year-over-year decline of 23.1%. The consensus mark for revenues is pinned at $23.33 billion, indicating a year-over-year deterioration of 10.1%.
The Zacks Consensus Estimate for NGL & Refined Products terminal volume is pinned at 1,357.4 thousand barrels per day (MBbls/d), up 3.5% from the prior-year quarter’s reported figure.
The consensus estimate for NGL & Refined Product transportation volumes is pegged at 2,004 MBbls/d, up 4.8% year over year. Almost 60 facilities are connected to ET’s NGL pipelines that benefit from recent frac expansions at the Mont Belvieu complex. This is likely to have a positive impact on the company’s earnings.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Energy Transfer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Energy Transfer LP Price and EPS Surprise
Energy Transfer LP price-eps-surprise | Energy Transfer LP Quote
Earnings ESP: ET’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the firm carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
DT Midstream, Inc. DTM is expected to post an earnings beat when it announces second-quarter results on Aug 1, before market open. It has an Earnings ESP of +1.15% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for DTM’s earnings is pegged at 87 cents per share, indicating a year-over-year increase of 8.8%.
ONEOK, Inc. OKE is likely to report an earnings beat when it announces second-quarter results on Aug 7, after market close. It has an Earnings ESP of +4.24% and a Zacks Rank #3 at present.
OKE’s long-term (three to five years) earnings growth rate is 6.26%. It delivered an average earnings surprise of 7.9% in the last four quarters.
Cactus, Inc. WHD is expected to come up with an earnings beat when it reports second-quarter results on Aug 7, after market close. It has an Earnings ESP of +3.97% and a Zacks Rank #3 at present.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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ONEOK, Inc. (OKE) : Free Stock Analysis Report
Energy Transfer LP (ET) : Free Stock Analysis Report
Cactus, Inc. (WHD) : Free Stock Analysis Report
DT Midstream, Inc. (DTM) : Free Stock Analysis Report
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