Regency Energy Partners LP Earnings: Here’s Why Investors are Not Excited Now

Regency Energy Partners LP (NYSE:RGP) had a loss 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. Shares are down 0%.

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Regency Energy Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 2.49% to $349 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $387.71 million.

Quoting Management: “During the first quarter of 2013, volumes began ramping up on several of our recently completed growth projects, contributing to an 11 percent increase in gathering and processing volumes and significant increases in Lone Star’s pipeline and fractionation throughput. We expect volumes to further increase in 2013 and 2014 as these projects continue to ramp up, and as the remainder of our major growth projects come online,” said Mike Bradley, president and chief executive officer of Regency. “In addition, we continued to see increasing demand for third party compression and treating services.”
“We also recently closed on the acquisition of the SUGS assets, and are excited to integrate these assets into our existing operations and begin realizing new growth opportunities from our expanded footprint in the Permian Basin,”

Key Stats (on next page)…

Revenue decreased 1.76% from $355.24 million in the previous quarter. EPS increased to $-0.06 in the quarter versus EPS of $-0.08 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 $0.12 to a profit $0.08. For the current year, the average estimate has moved down from a profit of $0.41 to a profit of $0.34 over the last ninety days.

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