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Phillips 66 (PSXP) Gains 2.4% as Q3 Earnings Meet Estimates

Phillips 66 Partners LP PSXP reported third-quarter 2020 earnings per unit of 85 cents, in line with the Zacks Consensus Estimate. However, earnings declined from 92 cents per unit in the year-ago quarter.

Revenues of $394 million decreased from $423 million in the year-ago quarter but beat the Zacks Consensus Estimate of $382 million.

The third-quarter results were aided by higher storage and processing activities, partially offset by lower throughput volumes of refined petroleum products and crude oil. Notably, the stock has gained 2.4% since the partnership’s bottom line met the consensus estimate on Oct 30.

Phillips 66 Partners LP Price, Consensus and EPS Surprise

 

Phillips 66 Partners LP price-consensus-eps-surprise-chart | Phillips 66 Partners LP Quote

Operating Information

The partnership provides services through Pipelines, Terminals and Storage Processing & Other activities.

Pipeline: In third-quarter 2020, the partnership generated revenues of $117 million, down from $121 million in the prior-year period. The drop was due to lower pipeline volumes of crude oil and refined petroleum products and NGL. Notably, average pipeline revenues of 71 cents per barrel increased from 66 cents in the year-ago quarter.

Terminals: The partnership generated $36 million revenues, down from $41 million in the year-ago quarter due to lower throughput volumes of refined petroleum products and crude oil.

Notably, average terminalling revenue per barrel was 39 cents in the quarter versus 33 cents in the year-ago quarter.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $112 million, up from $108 million in the year-ago quarter.

Costs & Expenses

In the September quarter of 2020, the partnership reported operating and maintenance expenses of $85 million, down from $91 million in the year-ago quarter. However, total costs and expenses increased to $177 million in third-quarter 2020 from the year-ago $173 million.

Balance Sheet & Capex

As of Sep 30, 2020, the partnership recorded cash and cash equivalents of $2 million. Total debt at the end of the quarter under review was $3,783 million. Notably, it has $457 million available under its revolving credit facility.

Capital expenditure and investment in the third quarter totaled $184 million.

Zacks Rank & Key Picks

The partnership currently has a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include PDC Energy Inc. PDCE, Matador Resources Company MTDR and Antero Resources Corporation AR. While PDC Energy sports a Zacks Rank #1 (Strong Buy), Matador and Antero carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PDC Energy is likely to see earnings growth of 13.3% in 2020.

Matador has seen upward estimate revisions for its 2020 bottom line in the past 30 days.

Antero has seen upward estimate revisions for its 2020 bottom line in the past 30 days.

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PDC Energy, Inc. (PDCE): Free Stock Analysis Report
 
Phillips 66 Partners LP (PSXP): Free Stock Analysis Report
 
Matador Resources Company (MTDR): Free Stock Analysis Report
 
Antero Resources Corporation (AR): Free Stock Analysis Report
 
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