After yesterday's market close, the pipeline company reported a per-unit loss of 68 cents, while Wall Street was anticipating a per-unit profit of 43 cents.
Revenue was down by 53% to $5.83 billion for the quarter, below analysts' estimates for revenue of $8.95 billion.
Energy Transfer Partners's general partner Energy Transfer Equity (ETE) is in the process of acquiring Williams Cos. (WMB) in a $32.6 billion transaction.
Investors have expressed concerns about whether the deal will close as energy prices have tanked and Energy Transfer Equity CFO Jamie Welch, who helped orchestrate the merger, leaves the company.
Even so, Williams Cos. reiterated its commitment to the deal in its earnings release last week.
(Energy Transfer Partners is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)
Insight from TheStreet Research Team:
Jim Cramer, Portfolio Manager of Action Alerts PLUS and Jack Mohr, Director of Research mentioned Energy Transfer Partners in a recent post. Here is a snippet of what Jim Cramer and Jack Mohr had to say about the stock:
We are generally disappointed, yet not surprised, by the results, and are glad we sold the majority of our small remaining position on Monday into strength and ahead of the quarter (ETP is now our second-smallest position, representing 1% of the portfolio). We believe the strong distribution coverage may be deceiving in light of weak underlying conditions apparent in tonight's results. Investors will be listening closely to tomorrow's 9 a.m. ET conference call (click hereto access) for incremental color around the underlying volume weakness as well as distributable cash flow, distribution coverage and distribution targets for the balance of the year. But we would not be surprised if management remained non-committal to a long-term distribution in light of the deteriorating backdrop and merger overhang. Absent this, we expect shares to be down sharply tomorrow.
Considering the weak EBITDA generation across major segments, we would be somewhat surprised if management committed to a long-term distribution target. We view the underlying trends as concerning and will provide incremental commentary after the call.
-Jim Cramer and Jack Mohr "ETP Results: What a Mess" Originally Published on 2/24/2016 on Action Alerts PLUS.
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Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Energy Transfer Partners' strengths such as its good cash flow from operations and notable return on equity are countered by weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: ETP
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.