雅虎香港財經 Why Is DCP Midstream Partners, LP (DCP) Up 0.3% Since Last Earnings Report?
It has been about a month since the last earnings report for DCP Midstream Partners, LP (DCP). Shares have added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is DCP Midstream 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 the most recent earnings report in order to get a better handle on the important catalysts.
DCP Midstream Q1 Earnings Miss Estimates
DCP Midstream reported first-quarter adjusted earnings of 99 cents per unit, which missed the Zacks Consensus Estimate of $1.10. The bottom line, however, increased from the year-ago quarter’s earnings of 96 cents per unit.
Total quarterly revenues of $2,726 million beat the Zacks Consensus Estimate of $1,935 million. However, the top line declined from $3,375 million in the year-ago quarter.
The year-over-year higher earnings were owing to favorable tariffs on NGL pipelines. This was partially offset by lower fractionator throughputs, leading to lower-than-expected quarterly earnings.
Operations
Logistics and Marketing
This segment of DCP Midstream recorded adjusted EBITDA of $205 million in the first quarter, down from the year-ago period’s $212 million. The underperformance was owing to lower contributions from NGL marketing and storage activities. This was partially nullified by favorable tariffs on NGL pipelines.
The average NGL pipeline throughput in the quarter was 723 thousand barrels per day (Mbpd), higher than the year-ago quarter’s 682 Mbpd. Fractionator throughputs were, however, recorded at 50 Mbpd, declining from 53 Mbpd in the year-ago quarter.
Gathering and Processing
The segment reported adjusted EBITDA of $223 million for the first quarter, down from $278 million in the year-ago quarter. A decline in commodity prices and increased operating and maintenance expenses hurt the segment.
Average natural gas wellhead volumes in the quarter rose to 4,524 million cubic feet per day (MMcf/d) from the year-ago period’s 4,110 MMcf/d. NGL gross production totaled 419 Mbpd, up from 402 Mbpd.
Total Expenses
Purchases and related costs declined year over year in the quarter under review. Operating and maintenance expenses rose to $197 million from $152 million in the first quarter of 2022.
Total operating costs and expenses were $2,605 million, down from the year-ago quarter’s figure of $3,365 million.
Financials
In first-quarter 2023, total growth capital expenditures and equity investments were $47 million. Sustaining capital in the quarter was $34 million. DCP generated an excess free cash flow of $93 million in the reported quarter.
At the end of the first quarter, DCP Midstream reported long-term debt of $4,892 million. Cash and cash equivalents were $1 million. It had current debt of $7 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, DCP Midstream Partners, LP has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. 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 downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise DCP Midstream Partners, LP has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report
