Crestwood Equity reports Q2 EPS $1.16, consensus 38c

Reports Q2 revenue $1.02B, consensus $1.16B. “In Q2, strong producer activity resulted in 73 new wells connected to our gathering systems, which brings the year-to-date total to 143 well connects, exceeding our expectations set at the beginning of the year and driving quarter-over-quarter volumetric growth across substantially all of Crestwood’s gathering and processing assets,” commented CEO Robert Phillips. “While volumes and well connects outperformed across the portfolio, Q2 financial results of $176M in Adjusted EBITDA and $86M in distributable cash flow were below our expectations due to reduced commodity prices, net non-cash mark-to-market losses in the NGL Logistics business, and lower volumes on the Arrow asset in the Williston Basin…Due to the widening spread opportunity, our physical inventories across our NGL storage assets are up over 50% compared to last year and are fully hedged with fixed forward sales contracts, so we expect all losses will be reversed, and incremental margin will be realized on excess inventory over the course of the winter heating season. And finally, we experienced approximately $6M lower Adjusted EBITDA in our G&P North operations predominantly attributable to lower volumes at Arrow during the quarter from increased producer downtime for downhole mechanical maintenance and frac protection around new completion activity.”