We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Magellan Midstream (MMP) Beats on Q2 Earnings, Revenues
Read MoreHide Full Article
Pipeline operator Magellan Midstream Partners LP announced strong second-quarter 2016 results. The outperformance came on the back of increased shipments following strong gasoline demand.
The Tulsa, OK-based oil distributor reported earnings per unit (EPU) of 82 cents (excluding commodity-related adjustments), surpassing the Zacks Consensus Estimate of 73 cents. The bottom line remains unchanged from the year-ago quarter.
Total revenue of $519 million increased 4% year over year. The top line also beat the Zacks Consensus Estimate of $508 million.
Distributable Cash Flow
Magellan Midstream’s distributable cash flow for the second quarter came in at $221 million, down 1% from the year-ago quarter.
Cash Distribution
On Jul 21, 2016, Magellan Midstream announced that its board of directors approved an increase in the second-quarter cash distribution. The new distribution of 82 cents per unit represents a sequential hike of 2% and a year-over-year improvement of 11%.
Segmental Performance
Refined Products: Quarterly operating profits were approximately $177.3 million, up almost 20% from the year-ago quarter. Increased shipment following strong gasoline demand led to the improvement.
Crude Oil: Operating margin was approximately $96.9 million, down 9.4% from the prior-year quarter owing to a decrease in earnings from the partnership’s joint venture along with a slight fall in transportation and terminals revenues.
Marine Storage: Operating margin was $28.9 million, down 4.3% from the year-ago quarter. A decline in fees from lower activities of ancillary customer led to the underperformance.
Guidance
The partnership reiterated its annual distribution growth of 10% for 2016. On top of that, for 2017, Magellan Midstream continues to project at least 8% annual distribution growth. Distributable cash flows projection for this year was also maintained at $910 million by the partnership.
Magellan guided third-quarter and full-year 2016 earnings per unit of 80 cents and $3.45, respectively.
Magellan Midstream currently carries a Zacks Rank #3 (Hold), implying that the partnership will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include Antero Resources Corporation (AR - Free Report) , Enbridge Inc. (ENB - Free Report) and Murphy USA Inc. (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Magellan Midstream (MMP) Beats on Q2 Earnings, Revenues
Pipeline operator Magellan Midstream Partners LP announced strong second-quarter 2016 results. The outperformance came on the back of increased shipments following strong gasoline demand.
The Tulsa, OK-based oil distributor reported earnings per unit (EPU) of 82 cents (excluding commodity-related adjustments), surpassing the Zacks Consensus Estimate of 73 cents. The bottom line remains unchanged from the year-ago quarter.
Total revenue of $519 million increased 4% year over year. The top line also beat the Zacks Consensus Estimate of $508 million.
Distributable Cash Flow
Magellan Midstream’s distributable cash flow for the second quarter came in at $221 million, down 1% from the year-ago quarter.
Cash Distribution
On Jul 21, 2016, Magellan Midstream announced that its board of directors approved an increase in the second-quarter cash distribution. The new distribution of 82 cents per unit represents a sequential hike of 2% and a year-over-year improvement of 11%.
Segmental Performance
Refined Products: Quarterly operating profits were approximately $177.3 million, up almost 20% from the year-ago quarter. Increased shipment following strong gasoline demand led to the improvement.
Crude Oil: Operating margin was approximately $96.9 million, down 9.4% from the prior-year quarter owing to a decrease in earnings from the partnership’s joint venture along with a slight fall in transportation and terminals revenues.
Marine Storage: Operating margin was $28.9 million, down 4.3% from the year-ago quarter. A decline in fees from lower activities of ancillary customer led to the underperformance.
Guidance
The partnership reiterated its annual distribution growth of 10% for 2016. On top of that, for 2017, Magellan Midstream continues to project at least 8% annual distribution growth. Distributable cash flows projection for this year was also maintained at $910 million by the partnership.
Magellan guided third-quarter and full-year 2016 earnings per unit of 80 cents and $3.45, respectively.
MAGELLAN MDSTRM Price, Consensus and EPS Surprise
MAGELLAN MDSTRM Price, Consensus and EPS Surprise | MAGELLAN MDSTRM Quote
Zacks Rank & Other Stocks
Magellan Midstream currently carries a Zacks Rank #3 (Hold), implying that the partnership will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include Antero Resources Corporation (AR - Free Report) , Enbridge Inc. (ENB - Free Report) and Murphy USA Inc. (MUSA - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>