PAA Natural Gas Storage Earnings: Here’s Why Investors are Happy Now

PAA Natural Gas Storage, L.P. C (NYSE:PNG) 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 up 2.96%.

PAA Natural Gas Storage, L.P. C Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4% to $0.24 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 15.39% to $115.55 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: PAA Natural Gas Storage, L.P. C reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.19. It beat the average revenue estimate of $111.72 million.

Quoting Management: “PNG reported second-quarter adjusted EBITDA that exceeded the high end of our guidance range,” said Dean Liollio, President of PAA Natural Gas Storage. “Our results were underpinned by our fee-based firm storage contracts, with over performance generated by merchant storage revenues previously expected to be realized later in the year and higher than forecasted oil revenues associated with liquids removal activities at our Bluewater facility.”

Key Stats (on next page)…

Revenue decreased 10.38% from $128.93 million in the previous quarter. EPS decreased 7.69% from $0.26 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 $0.92 to a profit of $0.91 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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