| Why Did Analysts Increase 3Q15 Estimates for Williams Partners? | |
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What to Expect from Williams Partners’ 3Q15 Earnings Release (Continued from Prior Part) Williams Partners’ 3Q15 revenue estimate
Wall Street analysts have increased Williams Partners’ (WPZ) 3Q15 revenue estimates compared to the previous quarter. WPZ’s 2Q15 revenue estimate was ~$1.8 billion while the 3Q15 estimate is ~$1.95 billion, an increase of ~6.4%. The 3Q15 revenue estimate is not comparable to 3Q14 actual numbers because the recent quarters include the results of Access Midstream. Williams Partners merged with Access Midstream in February 2015.
The higher revenue estimate could be attributable to the following factors:
- WPZ could see higher natural gas transportation revenues at Transco as a result of recent expansion projects placed into service. In a press release published on September 1, 2015, WPZ announced that it had placed into service the $300 million Virginia Southside Expansion on the Transco Pipeline. We’ll discuss more on this in a later article.
- WPZ could see an increase in overall earnings for the recently added access midstream segment.
The increase in WPZ’s 3Q15 revenue is expected to be offset by the following factors:
- WPZ’s Northeast G&P, Atlantic Gulf, West, and NGL & Petchem Services segments revenues might be negatively impacted by low crude oil, natural gas, and NGL (natural gas liquids) prices, as these segments are also involved in commodity marketing and distribution apart from midstream services.
- WPZ could see lower natural gas demand during the transition from the hot summer season to the slightly cooler fall season.
Reported revenue versus consensus estimates
Williams Partners has missed revenue estimates for seven out of last 12 quarters. After a ~20.3% miss in 1Q15, WPZ almost met its 2Q15 revenue estimate. The 2Q15 revenue estimate was ~$1,831.2 million against reported revenues of ~$1,830 million. We must wait for the 3Q15 earnings release to see whether WPZ beats or misses its 3Q15 revenue estimates. We’ll cover this in a post-earnings series on WPZ next month.
Peer comparison
WPZ peers Oneok Partners (OKS) and Enbridge Energy Partners (EEP) missed their 2Q15 revenue estimates by 22.9% and 12.6%, respectively. On the other hand, Spectra Energy Partners (SEP) beat its 2Q15 revenue estimate by 1.2%. Together, WPZ, OKS, EEP, and SEP account for ~15.71% of the Global X MLP ETF (MLPA).
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Enbridge Energy Partners LP
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CODE : EEP |
ISIN : US29250R1068 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Enbridge Energy is a and oil producing company based in United states of america. Enbridge Energy holds various exploration projects in USA. Its main exploration property is LAKEHEAD in USA. Enbridge Energy is listed in United States of America. Its market capitalisation is US$ 3.4 billions as of today (€ 3.0 billions). Its stock quote reached its lowest recent point on June 22, 2018 at US$ 10.00, and its highest recent level on December 19, 2018 at US$ 10.43. Enbridge Energy has 326 517 110 shares outstanding. |