LRR Energy Earnings: Here’s Why the Stock is Falling Now

LRR Energy LP (NYSE:LRE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.79%.

LRR Energy LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 44.44% to $0.78 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Rose 2.35% to $41.38 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LRR Energy LP reported adjusted EPS income of $0.78 per share. By that measure, the company beat the mean analyst estimate of $0.2. It beat the average revenue estimate of $30.09 million.

Quoting Management: Eric Mullins, Chairman and Co-Chief Executive Officer, commented, “We are very pleased with our second quarter, which included strong operating and financial results and the closing of our second acquisition this year. Adjusted EBITDA, distributable cash flow and distribution coverage improved significantly from the first quarter of 2013.” Charlie Adcock, Co-Chief Executive Officer, reflected that, “Second quarter results benefited from higher production due to the closing of our recent drop down transaction and increased development activity, higher oil price realizations due to a lower Midland to Cushing differential, and lower operating costs due to less workover activity during the quarter compared to the first quarter.”

Key Stats (on next page)…

Revenue increased 162.56% from $15.76 million in the previous quarter. EPS increased to $0.78 in the quarter versus EPS of $-0.32 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.21 and has not changed. For the current year, the average estimate has moved down from a profit of $0.75 to a profit of $0.22 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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