Sales and gross profit performance
In fiscal 3Q15, the gross profit of frontline midstream operator Williams Companies (WMB) fell 28.6% on a YoY (year-over-year) basis. Williams Companies’ sales grew by 11.3%. The sales of other midstream companies like Kinder Morgan (KMI), Energy Transfers Partners (ETP), and Energy Transfer Equity (ETE) grew by 15%, 10%, and 15.2%, respectively. These companies’ gross profit grew by 13%, 5%, and 97% on a YoY (year-over-year) basis.
The gross profits for other midstream companies like Spectra Energy Partners (SEP) and Plains All American Pipeline (PAA) rose by 16% and 20%, respectively, on a YoY basis in fiscal 3Q15. Spectra Energy Partners and Plains All American Pipeline’s sales grew by 15% and 3%, respectively.
The above midstream companies are also operating a small proportion in either the downstream or the “other energy” segment. Their main revenue sources are usually from oil and gas transportation. The above graph shows the sales and gross profit growth on a YoY basis for the previously mentioned midstream companies.
Before we move to the next part of this series, let’s look at a breakdown of the above companies’ YTD (year-to-date) performances.
- The midstream companies mentioned above fell by an average of 46% on a YTD basis. However, large-cap upstream companies fell by ~32%.
- Energy Transfer Equity’s gross profits grew by 97% on a YoY basis in fiscal 3Q15 but fell by 53.5% on a YTD basis.
- Magellan Midstream Partners (MMP) and Spectra Energy Partners only fell by 27% and 32%, respectively, on a YTD basis.
Meanwhile, the Energy Select Sector SPDR Fund (XLE), the US-based energy benchmark, fell by 23.6% on a YTD basis.