Midstream earnings are well underway, and several names have beat expectations and raised guidance.
Earnings from Plains All American Pipeline LP (PAA), Targa Resources (TRGP), ONEOK (OKE), and Enbridge (ENB) have surprised to the upside. The four midstream players beat analyst expectations for the last quarter. Additionally, PAA, Targa, and Enbridge raised full-year guidance.
PAA is a top holding in the Alerian MLP ETF (AMLP ), while Targa, ONEOK, and Enbridge are holdings in the Alerian Energy Infrastructure ETF (ENFR ).
AMLP tracks the Alerian MLP Infrastructure Index (AMZI), a composite of energy infrastructure MLPs. Companies in the index earn most of their cash flow from midstream activities.
ENFR is based on the Alerian Midstream Energy Select Index (AMEI). The index includes North American midstream energy infrastructure companies, comprising MLPs (25%) and corporations (75%).
Midstream Earnings Beat Expectations
PAA reported adjusted EBITDA of $674 million for the second quarter, beating analyst estimates by 1.2%. The MLP on August 2 raised the mid-point of guidance for full-year 2024 adjusted EBITDA by $75 million to a new range of $2.725 – $2.775 billion.
Targa reported adjusted EBITDA of $984.3 million, 5.1% above consensus. The company on August 1 increased adjusted EBITDA guidance to $4.0 billion at the midpoint, representing a 5% increase over its previous estimate.
Additionally, Targa repurchased $355.1 million in equity during the second quarter, a quarterly record. The company also announced a new $1.0 billion common share repurchase program.
Enbridge reported adjusted EBITDA of $4.3 billion, coming in 2.5% above estimates. The midstream company on August 2 raised adjusted EBITDA guidance to $18.0 billion at the midpoint, from $16.9 billion, to reflect contributions from its gas utilities acquisition.
Finally, ONEOK reported adjusted EBITDA of $1.624 billion, 7.2% above analyst estimates. The company on August 5 affirmed full-year 2024 financial guidance.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
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