Yahoo Finance DCP Midstream Partners, LP (DCP) Up 0.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for DCP Midstream Partners, LP (DCP). Shares have added about 0.2% in that time frame, outperforming 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 drivers.
DCP Midstream Q4 Earnings Beat, Revenues Decline Y/Y
DCP Midstream reported fourth-quarter adjusted earnings of $1.13 per unit, which beat the Zacks Consensus Estimate of $1.05. The bottom line declined from the year-ago quarter’s earnings of $1.44 per unit.
Total quarterly revenues of $3,030 million beat the Zacks Consensus Estimate of $2,027 million. However, the top line declined from $3,477 million in the year-ago quarter.
The better-than-expected quarterly results were driven by favorable NGL and gas marketing results, and tariffs on NGL pipelines. The positives were partially offset by higher operating and maintenances expenses.
Operations
Logistics and Marketing
This segment of DCP Midstream recorded adjusted EBITDA of $209 million in the fourth quarter, up from the year-ago period’s $161 million. Favorable NGL and gas marketing results, and tariffs on NGL pipelines aided the segment.
The average NGL pipeline throughput in the quarter was 687 thousand barrels per day (Mbpd), lower than the year-ago quarter’s 692 Mbpd. Fractionator throughputs were recorded at 56 Mbpd, declining from 57 Mbpd in the year-ago quarter.
Gathering and Processing
The segment reported adjusted EBITDA of $235 million for the fourth quarter, down from $237 million in the year-ago quarter. Higher operating and maintenance expenses hurt the segment.
Average natural gas wellhead volumes in the quarter rose to 4,430 million cubic feet per day (MMcf/d) from the year-ago period’s 4,151 MMcf/d. NGL gross production totaled 418 Mbpd, up from 417 Mbpd.
Total Expenses
Purchases and related costs declined year over year in the quarter under review. Operating and maintenance expenses rose to $195 million from $177 million in the fourth quarter of 2021.
Total operating costs and expenses were $2,860 million, down from the year-ago quarter’s figure of $3,225 million.
Financials
In fourth-quarter 2022, total growth capital expenditures, acquisition and equity investments were $59 million. Sustaining capital in the quarter was $59 million. DCP generated an excess free cash flow of $62 million in the reported quarter.
At the end of the fourth quarter, DCP Midstream reported long-term debt of $4,357 million. Cash and cash equivalents were $1 million. It had current debt of $506 million.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
At this time, DCP Midstream Partners, LP has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, 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
DCP Midstream Partners, LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
DCP Midstream Partners, LP is part of the Zacks Oil and Gas - Production and Pipelines industry. Over the past month, MPLX LP (MPLX), a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended December 2022 more than a month ago.
MPLX LP reported revenues of $2.66 billion in the last reported quarter, representing a year-over-year change of -2.6%. EPS of $0.78 for the same period compares with $0.78 a year ago.
MPLX LP is expected to post earnings of $0.84 per share for the current quarter, representing a year-over-year change of +7.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.3%.
MPLX LP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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