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MPLX Q4 Earnings Beat Estimates on Higher Throughput Volumes
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MPLX LP (MPLX - Free Report) reported strong fourth-quarter 2021 results, supported by increased contributions from logistics and storage operations, as well as the gathering and processing business. Increased pipeline throughputs and natural gas liquid prices buoyed the fourth-quarter results.
The favorable commodity pricing scenario has driven upstream investments, thereby generating increased production. Higher production volumes have resulted in a significant increase in utilization rates on pipelines. Hence, rising commodity prices have changed the playing area for the midstream space in the fourth quarter.
Q4 Results
The partnership reported fourth-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate of 75 cents. The bottom line improved from the year-ago earnings of 63 cents per unit.
Total quarterly revenues of $2,734 million surpassed the Zacks Consensus Estimate of $2,354 million. Also, the top line increased from the prior-year quarter’s $2,249 million.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $884 million a year ago to $934 million. Higher revenues and lower operating expenses aided the segment. Total pipeline throughputs for the fourth quarter were 5.6 million barrels per day (bpd), marking an 18% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $511 million, up from $471 million in the prior-year quarter. The segment benefited from higher natural gas liquid prices, partially offset by reduced processed and fractionated volumes. Gathered volumes averaged 5.4 billion cubic feet per day (Bcf/d), suggesting a 3% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 2% decrease from the fourth quarter of 2020.
Costs and Expenses
For fourth-quarter 2021, total costs and expenses were $1,678 million, up from the year-ago quarter’s $1,329 million. Expenses related to operations increased to $909 million from $519 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX for fourth-quarter 2021 was $1,207 million, providing 1.64X distribution coverage, up from $1,155 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter, up from 68.75 cents in the year-ago period.
Free cash flow for the quarter under review increased to $1,103 million from $988 million recorded in the corresponding period of 2020.
Balance Sheet
As of Dec 31, 2021, the partnership’s cash and cash equivalents were $13 million, down sequentially from $39 million. Its total debt amounted to $20 billion, up from the third quarter’s $19.6 billion.
Outlook
For 2022, MPLX expects total capital spending of $900 million. As such, growth capital will likely be $700 million, while maintenance capital will probably be $140 million. The spending budget also involves $60 million to repay its share of the Bakken pipeline joint venture debt due in 2022.
The majority of the capital budget is expected to be allocated at opportunities in the Marcellus, Permian and Bakken Play. The partnership expects to continue generating excess free cash flow, which will enhance financial flexibility, including the ability to return incremental capital to unitholders.
Zacks Rank & Stocks to Consider
The partnership currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. Murphy USA reported adjusted earnings of $4.23 per share for the fourth quarter, beating the Zacks Consensus Estimate of $3.68 per share.
Murphy USA currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. As of Dec 31, Murphy USA had cash and cash equivalents of $256.4 million. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. PSX reported fourth-quarter adjusted earnings per share of $2.94, beating the Zacks Consensus Estimate of $1.93.
Phillips 66 is expected to see an earnings growth of 38.8% in 2022. PSX currently has a Zacks Style Score of A for Value, Growth and Momentum. For the fourth quarter, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, RPC managed to maintain a debt-free balance sheet.
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MPLX Q4 Earnings Beat Estimates on Higher Throughput Volumes
MPLX LP (MPLX - Free Report) reported strong fourth-quarter 2021 results, supported by increased contributions from logistics and storage operations, as well as the gathering and processing business. Increased pipeline throughputs and natural gas liquid prices buoyed the fourth-quarter results.
The favorable commodity pricing scenario has driven upstream investments, thereby generating increased production. Higher production volumes have resulted in a significant increase in utilization rates on pipelines. Hence, rising commodity prices have changed the playing area for the midstream space in the fourth quarter.
Q4 Results
The partnership reported fourth-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate of 75 cents. The bottom line improved from the year-ago earnings of 63 cents per unit.
Total quarterly revenues of $2,734 million surpassed the Zacks Consensus Estimate of $2,354 million. Also, the top line increased from the prior-year quarter’s $2,249 million.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $884 million a year ago to $934 million. Higher revenues and lower operating expenses aided the segment. Total pipeline throughputs for the fourth quarter were 5.6 million barrels per day (bpd), marking an 18% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $511 million, up from $471 million in the prior-year quarter. The segment benefited from higher natural gas liquid prices, partially offset by reduced processed and fractionated volumes. Gathered volumes averaged 5.4 billion cubic feet per day (Bcf/d), suggesting a 3% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 2% decrease from the fourth quarter of 2020.
Costs and Expenses
For fourth-quarter 2021, total costs and expenses were $1,678 million, up from the year-ago quarter’s $1,329 million. Expenses related to operations increased to $909 million from $519 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX for fourth-quarter 2021 was $1,207 million, providing 1.64X distribution coverage, up from $1,155 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter, up from 68.75 cents in the year-ago period.
Free cash flow for the quarter under review increased to $1,103 million from $988 million recorded in the corresponding period of 2020.
Balance Sheet
As of Dec 31, 2021, the partnership’s cash and cash equivalents were $13 million, down sequentially from $39 million. Its total debt amounted to $20 billion, up from the third quarter’s $19.6 billion.
Outlook
For 2022, MPLX expects total capital spending of $900 million. As such, growth capital will likely be $700 million, while maintenance capital will probably be $140 million. The spending budget also involves $60 million to repay its share of the Bakken pipeline joint venture debt due in 2022.
The majority of the capital budget is expected to be allocated at opportunities in the Marcellus, Permian and Bakken Play. The partnership expects to continue generating excess free cash flow, which will enhance financial flexibility, including the ability to return incremental capital to unitholders.
Zacks Rank & Stocks to Consider
The partnership currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. Murphy USA reported adjusted earnings of $4.23 per share for the fourth quarter, beating the Zacks Consensus Estimate of $3.68 per share.
Murphy USA currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. As of Dec 31, Murphy USA had cash and cash equivalents of $256.4 million. MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strength. PSX reported fourth-quarter adjusted earnings per share of $2.94, beating the Zacks Consensus Estimate of $1.93.
Phillips 66 is expected to see an earnings growth of 38.8% in 2022. PSX currently has a Zacks Style Score of A for Value, Growth and Momentum. For the fourth quarter, Phillips 66 generated $1,800 million of net cash from operations, up from $639 million a year ago.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, RPC managed to maintain a debt-free balance sheet.