Crestwood Midstream Partners Earnings: Everything You Must Know Now

Crestwood Midstream Partners (NYSE:CMLP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Crestwood Midstream Partners Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 53.33% to $0.07 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 34.75% to $72.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Crestwood Midstream Partners reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $77.57 million.

Quoting Management: “We are pleased with our first quarter results, with each of our operating segments performing in-line with our expectations,” stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood’s general partner. “The Marcellus region continues to drive our growth forecast for 2013 with approximately 80% of our 2013 capital budget dedicated to new pipeline and compression projects servicing the rich gas production of Antero Resources Appalachian Corporation (“Antero”). During the first quarter, we initiated the Zinnia pipeline expansion project and the Morgan, Perkins and West Union compressor station projects. These projects will add significant capacity to increase deliveries of Antero’s gas to MarkWest’s Sherwood gas processing facility (“Sherwood”) later in the year. During the first quarter, we connected 15 of Antero’s high volume wells to our gathering system, but flow rates were limited due to compression outages and downstream capacity limitations. Antero is continuing its aggressive development program with 12 rigs running in the area at present and plans to increase to 14 rigs by year end 2013. We are working closely with Antero and other third parties to ensure adequate downstream pipeline and compression capacity is available for production volumes connected to our gathering system.”

Key Stats (on next page)…

Revenue increased 27.04% from $56.99 million in the previous quarter. EPS decreased 80% from $0.35 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.30 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $1.19 to a profit of $0.51 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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