DCP Midstream’s 4Q14 Earnings Fall Short of Estimates

DCP Midstream Partners (DPM) released its financial information for 4Q14 and full year 2014 on February 24, 2015. Other energy midstream companies that have released 4Q14 results include Williams Companies (WMB), Spectra Energy (SE), and Kinder Morgan (KMI). Spectra Energy makes up 2.03% of the Energy Select Sector ETF (XLE).

Between 3Q12 and 4Q14, DCP Midstream’s (DPM) adjusted revenues increased 166%. From 4Q13 to 4Q14, adjusted revenues increased 10%.

DCP Midstream’s 4Q14 earnings fell short of estimates. Adjusted revenues fell by ~6%. On average, however, adjusted revenues have exceeded consensus revenues by ~3% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted revenues estimate for DCP Midstream is $1.08 billion, or 23% higher than $881 million it recorded in 4Q14.

As noted in the graph above, DCP Midstream’s adjusted earnings per unit (or EPU) exceeded estimates in many of the quarters in the past. Between 3Q12 and 4Q14, DCP Midstream’s adjusted earnings increased 123%.

On average, adjusted EPU exceeded consensus EPU by ~8% in the past ten quarters.

The 1Q15 consensus sell side analysts’ adjusted EPU estimate for DCP Midstream is $0.674, or 38% higher than $0.49 it recorded in 4Q14.

Read the following section where we’ll discuss DCP Midstream’s (DPM) 4Q14 financial results in detail.