Earnings estimate for 3Q15
Current earnings estimates indicate growth of ~2.5% in 3Q15 over 2Q15. The estimated earnings for 3Q15 is $0.4 per share. The average surprise factor per quarter since 3Q14 is ~-13% over consensus estimates. Its major source of revenue is from the gathering and transportation of natural gas that contributes an average of ~54.4% towards the gross revenue per quarter since 3Q14. This revenue stream is less correlated with the volatility in energy prices, making its top line more sustainable in a commodity bear market environment. Estimated revenue, however, is $ 388.3 million, down by ~3.48% over 2Q15 revenue.
The average estimated earnings growth rate per quarter for the top five capped companies in the midstream oil and gas sector is ~-4.88% in 3Q15 over 2Q15.The average surprise factor per quarter for theses companies since 3Q14 is ~-17% over the estimate. These companies are Kinder Morgan Inc. (KMI), Enterprise Products Partners LP (EPD), William Cos Inc. (WMB), Energy Transfer Equity LP (ETE) and Energy Transfer Partner LP (ETP). The Energy Select Sector SPDR ETF (XLE) has an exposure of ~10.87% to the midstream oil and gas segment.
Below is the graph that shows adjusted EPS (or earnings per share) versus estimated EPS.
Overall debt situation
The total current and non-current liabilities in 2Q15 were ~$213 million and ~$2.98 billion. The net change in total debt is around ~$144 million. The total outstanding debt till 2Q15 was ~$2.68 billion. The average growth of the total debt per quarter since 3Q14 is ~7.38%. The long-term debt to equity ratio in 2Q15 was 66.59x. The average long-term debt to equity ratio per quarter since 3Q14 is 66.90x.
Below is the graph that illustrates the total current and non-current liabilities and the net change in total debt.