S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Energy

Pipeline to Profits is Clogged (EPD, KMP, PAA, BSR)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Enterprise Products Partners LP (NYSE:EPD) reported first quarter earnings of $237.3 million (earnings per unit of $0.41) on revenues of $3.42 billion. In the first quarter of 2008, the company reported earnings of $272 million, per unit earnings of $0.51, and revenues of $5.68 billion. The 40% drop in revenues was attributed to lower commodity prices during the first quarter of 2009.

Analysts expected first quarter earnings per unit of $0.36 on revenues of $5.11 billion. Enterprise said it lost about $21 million due to the continuing effects of Hurricanes Gustav and Ike, and the hurricanes also reduced distributable cash flow by about $38 million. Distributable cash flow totaled $383 million in the first quarter of 2008, compared with $343 for the 2009 first quarter.

The company’s performance pretty much matched that of Kinder Morgan Energy Partners, L.P. (NYSE:KMP), although transportation volumes rose slightly for Enterprise’s crude oil, petrochemical, and natural gas pipelines. Plains All American Pipeline LP (NYSE:PAA) reports May 7th and analysts expect unit earnings of $0.83 on revenues of $5.5 billion. That may be a stretch, given what’s happened with Kinder Morgan and Enterprise.

Enterprise shares are up more than 2.5% in pre-market trading this morning, while Kinder Morgan is down less than 1%. Neither Plains nor the pipeline ETN, BearLinx Alerian MLP Select Index has not traded yet today.

Paul Ausick
April 27, 2009

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Kinder Morgan And Broader LP Distribution Conundrum (KMP, EPD, ENB, BSR)

There could be some trouble ahead in at least some of the entities in the pipeline business and the practice…

Douglas A. McIntyre |

Kinder Morgan Hiking Payout, Yet Misses Targets (KMP, KMR)

After the market closed yesterday, Kinder Morgan Energy Partners (NYSE:KMP) reported EPS of $0.48 on revenue of $3.23 billion for…

Can Kinder Morgan Afford to Raise Its Dividend? Can It Afford Not To?
Paul Ausick |

Can Kinder Morgan Afford to Raise Its Dividend? Can It Afford Not To?

Crude oil prices improved by more than a third in the second quarter, and that put some extra cash in…

Douglas A. McIntyre |

TEPPCO Piping Earnings (TPP)

TEPPCO Partners (NYSE:TPP), a pipeline master limited partnership, reported third quarter earnings of $0.40/common unit on revenues of $4.2 billion.…

More Upgraded Expectations for Kinder Morgan and Enterprise
Paul Ausick |

More Upgraded Expectations for Kinder Morgan and Enterprise

The country's two largest energy pipeline and infrastructure companies made some positive news recently for quite different reasons.

Lee Jackson |

J.P. Morgan Stays Very Defensive on Top MLPs to Buy in 2015

Here are six top MLPs to buy now for investors that can stand some volatility in a growth and income…

Kinder Morgan Stock Reflects Sliding Debt, Higher Dividends
Paul Ausick |

Kinder Morgan Stock Reflects Sliding Debt, Higher Dividends

Energy infrastructure provider Kinder Morgan reported fourth-quarter and full-year results after markets closed Wednesday. Earnings were a bit better though…

Will Kinder Morgan Earnings Set Tone for MLPs?
Paul Ausick |

Will Kinder Morgan Earnings Set Tone for MLPs?

Energy pipeline company Kinder Morgan reports first-quarter earnings after markets close Wednesday. Analysts at Jefferies took a look at the…

Kinder Morgan Slashes Dividend Amidst Crumbling Oil Prices
Chris Lange |

Kinder Morgan Slashes Dividend Amidst Crumbling Oil Prices

Kinder Morgan reported disappointing fourth-quarter financial results after the markets closed on Wednesday.

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820