Regency Energy Partners Earnings: Here’s Why Investors are Selling Shares Now

Regency Energy Partners (NYSE:RGP) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.1%.

Regency Energy Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Decreased 3.91% to $355.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.05. It missed the average revenue estimate of $380.16 million.

Quoting Management: “In 2012, robust drilling activity in south and west Texas and in north Louisiana contributed to a 20 percent increase in gathering and processing volumes, and we also saw an upswing in revenue generating horsepower in our contract compression business,” said Mike Bradley, president and chief executive officer of Regency. “In addition, we continued construction on major organic growth projects in several of our liquids-rich operating regions.”

Key Stats (on next page)…