Boardwalk Pipeline’s 1Q16 EBITDA estimates
Boardwalk Pipeline Partners (BWP) is expected to release its 1Q16 earnings on May 2, 2016. In this series, we’ll talk about estimates for BWP’s 1Q16 earnings, its stock performance, and analysts’ recommendations for the stock. Let’s start with analysts’ earnings estimates.
Wall Street analysts’ consensus 1Q16 EBITDA (earnings before interest, tax, depreciation, and amortization) estimate for BWP is $215 million. This is 5.1% greater than BWP’s 1Q15 adjusted EBITDA.
Boardwalk Pipeline’s 1Q16 EBITDA drivers
The expected YoY rise in Boardwalk Pipeline’s 1Q16 earnings could be driven by the following factors:
- higher NGLs (natural gas liquids) throughput volumes with BWP’s Evangeline Pipeline returning to service
- the Southeast Market Expansion project
The above positives might be slightly offset by a decline in production at the Eagle Ford Shale, which affects BWP’s gathering volumes. However, considering BWP’s strong revenues from firm contracts, the impact from Eagle Ford Shale production might be negligible. We’ll look at BWP’s commodity price exposure in the next article in this series.
Crestwood Equity Partners (CEQP), EnLink Midstream Partners (ENLK), and Western Gas Partners (WES) are among the midstream MLPs that are expected to experience a decline in their Eagle Ford Shale throughput volumes in 1Q16.
Boardwalk Pipeline’s adjusted EBITDA versus consensus estimates
The 4Q15 EBITDA estimate for BWP was $156 million. Adjusted EBITDA came in at $189 million, beating the estimate by 21.1%. We’ll have to wait until next week to see whether BWP manages to beat its 1Q16 earnings estimates, as well. BWP forms 0.02% of the Vanguard FTSE All-World ex-US Small-Cap ETF (VSS).
In the next part of this series, we’ll explore why BWP has outperformed the Alerian MLP ETF (AMLP).