Summary
- Crestwood Equity Partners saw its revenues decline year over year, mostly due to reduced performance in two business segments.
- The EBITDA performance remained strong though, with only one segment showing a minor decrease.
- Margins for the company's downstream propane business remained strong due to the lower oil prices dominating this quarter.
- The company acquired 50% of Jackalope, which will likely be a very strong source of growth going forward.
- Crestwood Equity Partners' finances and distribution coverage remain very strong.
- This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Start your free trial today »
On Tuesday, April 30, 2019, midsized midstream partnership Crestwood Equity Partners (CEQP) announced its first-quarter 2019 earnings results. At first glance, these results were rather disappointing, as the company failed to meet the expectations of its analysts on either the top or bottom line. However, a closer look at the earnings report reveals that there were certainly a few good things to like here as the company continues to execute on its growth story. In addition, Crestwood continues to boast one of the strongest balance sheets and sustainable distributions in the midstream space.
As my long-time readers are no doubt well aware, it is my usual practice to share the highlights from a company's earnings report before delving into an analysis of its results. This is because these highlights provide a background for the remainder of the article, as well as serve as a framework for the resultant analysis. Therefore, here are the highlights from Crestwood Equity Partners' first-quarter 2019 earnings results:
