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MPLX Q3 Earnings Miss Estimates, Revenues Fall Year Over Year
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MPLX LP (MPLX - Free Report) reported third-quarter earnings of 89 cents per unit, which missed the Zacks Consensus Estimate of 91 cents. The bottom line also declined from the year-ago quarter’s level of 96 cents.
Total quarterly revenues of $2,912 million surpassed the Zacks Consensus Estimate of $2,665 million. However, the top line declined from the prior-year quarter’s figure of $3,401 million.
Weak quarterly earnings can be attributed to the increase in total costs and expenses.
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased to $1,091 million from $969 million registered a year ago. Increased rates and growth in throughput aided the segment. Total pipeline throughputs in the third quarter were 5.9 million barrels per day, up a marginal 2% from the year-ago period’s level.
Adjusted EBITDA from the Gathering and Processing segment totaled $505 million, up from $502 million in the prior-year quarter. The segment was favored by increased gathering throughput volumes. Gathering throughput volumes averaged 6.3 billion cubic feet per day (Bcf/d), implying a 3% improvement from the year-ago period’s level. Natural gas processed volumes of 9.0 Bcf/d marked a 5% increase year over year.
Costs and Expenses
In third-quarter 2023, MPLX’s total costs and expenses were $1,758 million, up from the year-ago quarter’s figure of $1,727 million.
Cash Flow
Distributable cash flow in the quarter totaled $1,373 million, providing 1.6X distribution coverage, up from $1,264 million recorded in the year-ago quarter.
Adjusted free cash flow in the quarter under review increased to $1,004 million from $777 million in the corresponding period of 2022.
Balance Sheet
As of Sep 30, 2023, the partnership’s cash and cash equivalents were $960 million. Its total debt amounted to $20.4 billion.
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.
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MPLX Q3 Earnings Miss Estimates, Revenues Fall Year Over Year
MPLX LP (MPLX - Free Report) reported third-quarter earnings of 89 cents per unit, which missed the Zacks Consensus Estimate of 91 cents. The bottom line also declined from the year-ago quarter’s level of 96 cents.
Total quarterly revenues of $2,912 million surpassed the Zacks Consensus Estimate of $2,665 million. However, the top line declined from the prior-year quarter’s figure of $3,401 million.
Weak quarterly earnings can be attributed to the increase in total costs and expenses.
MPLX LP Price, Consensus and EPS Surprise
MPLX LP price-consensus-eps-surprise-chart | MPLX LP Quote
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased to $1,091 million from $969 million registered a year ago. Increased rates and growth in throughput aided the segment. Total pipeline throughputs in the third quarter were 5.9 million barrels per day, up a marginal 2% from the year-ago period’s level.
Adjusted EBITDA from the Gathering and Processing segment totaled $505 million, up from $502 million in the prior-year quarter. The segment was favored by increased gathering throughput volumes. Gathering throughput volumes averaged 6.3 billion cubic feet per day (Bcf/d), implying a 3% improvement from the year-ago period’s level. Natural gas processed volumes of 9.0 Bcf/d marked a 5% increase year over year.
Costs and Expenses
In third-quarter 2023, MPLX’s total costs and expenses were $1,758 million, up from the year-ago quarter’s figure of $1,727 million.
Cash Flow
Distributable cash flow in the quarter totaled $1,373 million, providing 1.6X distribution coverage, up from $1,264 million recorded in the year-ago quarter.
Adjusted free cash flow in the quarter under review increased to $1,004 million from $777 million in the corresponding period of 2022.
Balance Sheet
As of Sep 30, 2023, the partnership’s cash and cash equivalents were $960 million. Its total debt amounted to $20.4 billion.
Zacks Rank & Other Stocks to Consider
MPLX currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the energy sector are Liberty Energy Inc. (LBRT - Free Report) , Matador Resources Company (MTDR - Free Report) and Oceaneering International, Inc. (OII - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.
Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.