Sunoco Logistics’ 4Q15 EBITDA estimates
Wall Street analysts’ 4Q15 consensus EBITDA estimate for SXL is ~$305.8 million. SXL’s 4Q15 estimate is 29% more than the reported 4Q14 adjusted EBITDA. SXL’s peers, Buckeye Partners (BPL) and NuStar Energy (NS) posted a YoY EBITDA growth of 9.4% and 10.7%, respectively, in 4Q15 versus 4Q14. For more details read, Flexing Its Muscles: Buckeye Partners Posts Strong 4Q15 Earnings and NuStar Energy Beat EBITDA Estimates in 4Q15 Earnings Release
4Q15 EBITDA drivers
Sunoco Logistics’ 4Q15 EBITDA growth is expected to be driven by the following factors.
- Higher NGLs (natural gas liquids) volumes at SXL’s Nederland terminal and Marcus Hook Industrial Complex
- Recent expansion projects placed into service at SXL’s Crude Oil Pipelines and Product Pipelines segment
These positives are expected to be offset by weak performance from SXL’s Crude Oil Acquisition and Marketing segment. We’ll discuss more on this in a later article.
Adjusted EBITDA versus consensus estimates
The 3Q15 EBITDA estimate for SXL was ~$283.4 million, while the adjusted EBITDA was ~$289 million, a ~2.0% beat. We have to wait for the 4Q15 earnings release to see whether SXL beats or misses its 4Q15 EBITDA estimates, but rest assured, we’ll cover this in our post-earnings series for SXL once it reports its 4Q15 results. SXL forms 4.99% of the Global X MLP ETF (MLPA).