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Why Is MPLX LP (MPLX) Up 1.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 1.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MPLX LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
MPLX Q2 Earnings & Revenues Beat Estimates
MPLX reported second-quarter earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The bottom line improved from the year-ago quarter’s 66 cents.
Total quarterly revenues of $2,940 million surpassed the Zacks Consensus Estimate of $2,489 million. The top line also increased from the prior-year quarter’s $2,395 million.
The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
Unit Repurchases
MPLX’s board of directors authorized a unit repurchase program of up to an additional $1 billion of the outstanding publicly traded common units.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $947 million a year ago to $966 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the second quarter were 5.9 million barrels per day (bpd), marking a 6% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $491 million, up from $427 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.6 billion cubic feet per day (Bcf/d), suggesting an 11% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 1% increase from the year-ago quarter.
Costs and Expenses
For second-quarter 2022, total costs and expenses of MPLX were $1,823 million, up from the year-ago quarter’s $1,464 million.
Cash Flow
Distributable cash flow attributable to MPLX for second-quarter 2022 was $1,237 million, providing 1.69X distribution coverage, down from $1,250 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter.
Free cash flow for the quarter under review increased to $1,349 million from $1,210 million recorded in the corresponding period of 2021.
Balance Sheet
As of Jun 30, 2022, the partnership’s cash and cash equivalents were $298 million. Its total debt amounted to $19.8 billion.
Outlook
For 2022, MPLX revealed its growth capital spending guidance of $700 million.
How Have Estimates Been Moving Since Then?
Estimates revision followed a flat path over the past two months.
VGM Scores
Currently, MPLX LP has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MPLX LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Williams Companies, Inc. The (WMB - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Williams Companies, Inc. The reported revenues of $2.49 billion in the last reported quarter, representing a year-over-year change of +9.1%. EPS of $0.40 for the same period compares with $0.27 a year ago.
Williams Companies, Inc. The is expected to post earnings of $0.40 per share for the current quarter, representing a year-over-year change of +17.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.9%.
Williams Companies, Inc. The has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is MPLX LP (MPLX) Up 1.2% Since Last Earnings Report?
A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 1.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MPLX LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
MPLX Q2 Earnings & Revenues Beat Estimates
MPLX reported second-quarter earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The bottom line improved from the year-ago quarter’s 66 cents.
Total quarterly revenues of $2,940 million surpassed the Zacks Consensus Estimate of $2,489 million. The top line also increased from the prior-year quarter’s $2,395 million.
The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
Unit Repurchases
MPLX’s board of directors authorized a unit repurchase program of up to an additional $1 billion of the outstanding publicly traded common units.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $947 million a year ago to $966 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the second quarter were 5.9 million barrels per day (bpd), marking a 6% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $491 million, up from $427 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.6 billion cubic feet per day (Bcf/d), suggesting an 11% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 1% increase from the year-ago quarter.
Costs and Expenses
For second-quarter 2022, total costs and expenses of MPLX were $1,823 million, up from the year-ago quarter’s $1,464 million.
Cash Flow
Distributable cash flow attributable to MPLX for second-quarter 2022 was $1,237 million, providing 1.69X distribution coverage, down from $1,250 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter.
Free cash flow for the quarter under review increased to $1,349 million from $1,210 million recorded in the corresponding period of 2021.
Balance Sheet
As of Jun 30, 2022, the partnership’s cash and cash equivalents were $298 million. Its total debt amounted to $19.8 billion.
Outlook
For 2022, MPLX revealed its growth capital spending guidance of $700 million.
How Have Estimates Been Moving Since Then?
Estimates revision followed a flat path over the past two months.
VGM Scores
Currently, MPLX LP has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MPLX LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Williams Companies, Inc. The (WMB - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Williams Companies, Inc. The reported revenues of $2.49 billion in the last reported quarter, representing a year-over-year change of +9.1%. EPS of $0.40 for the same period compares with $0.27 a year ago.
Williams Companies, Inc. The is expected to post earnings of $0.40 per share for the current quarter, representing a year-over-year change of +17.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.9%.
Williams Companies, Inc. The has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.