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MPLX LP (MPLX) Up 2.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 2.4% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
MPLX Q2 Earnings & Revenues Beat Estimates
MPLX LP reported second-quarter 2024 earnings of $1.15 per unit, which topped the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago quarter’s figure of 91 cents.
Total quarterly revenues of $3.05 billion beat the Zacks Consensus Estimate of $2.92 billion. The top line also increased from the prior-year quarter’s level of $2.69 billion.
Strong quarterly results were primarily driven by higher gathered and processed throughput volumes. An increase in total pipeline throughputs also contributed to the same.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased to $1.13 billion from $1.02 billion a year ago. The strong performance was driven by increased rates, including growth from equity affiliates. Further, total pipeline throughputs in the second quarter were 6 million barrels per day, up 1% from the year-ago quarter’s level.
Adjusted EBITDA from the Gathering and Processing segment totaled $524 million, up from $509 million in the prior-year quarter. The segment was aided by an increase in volumes, including contributions from the recently acquired assets. However, higher operating expenses offset the positives to some extent.
Gathering throughput volumes averaged 6.6 billion cubic feet per day (Bcf/d), implying a 7% increase from the year-ago period’s level. Natural gas processed volumes came in at 9.6 Bcf/d, indicating a 7% increase from the prior-year quarter’s level.
Costs and Expenses
MPLX’s total costs and expenses were $1.63 billion, up from the year-ago quarter’s reported figure of $1.52 billion. The increase can be attributed to higher operating expenses (including purchased product costs) and increased general and administrative expenses.
Cash Flow
Distributable cash flow in the quarter totaled $1.4 billion, providing 1.6X distribution coverage. The figure increased from $1.32 billion in the year-ago quarter.
Adjusted free cash flow increased to $1.45 billion from $1.16 billion in the corresponding period of 2023.
Balance Sheet
As of Jun 30, 2024, the partnership’s cash and cash equivalents were $2.5 billion, and its total debt amounted to $22.1 billion.
Outlook
MPLX maintains its projection for 2024 capital spending at $1.1 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, MPLX LP has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MPLX LP has a Zacks Rank #1 (Strong Buy). We expect an above average 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 3.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
The Williams Companies reported revenues of $2.34 billion in the last reported quarter, representing a year-over-year change of -5.9%. EPS of $0.43 for the same period compares with $0.42 a year ago.
The Williams Companies is expected to post earnings of $0.41 per share for the current quarter, representing a year-over-year change of -8.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Williams Companies. Also, the stock has a VGM Score of C.
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MPLX LP (MPLX) Up 2.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 2.4% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
MPLX Q2 Earnings & Revenues Beat Estimates
MPLX LP reported second-quarter 2024 earnings of $1.15 per unit, which topped the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago quarter’s figure of 91 cents.
Total quarterly revenues of $3.05 billion beat the Zacks Consensus Estimate of $2.92 billion. The top line also increased from the prior-year quarter’s level of $2.69 billion.
Strong quarterly results were primarily driven by higher gathered and processed throughput volumes. An increase in total pipeline throughputs also contributed to the same.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased to $1.13 billion from $1.02 billion a year ago. The strong performance was driven by increased rates, including growth from equity affiliates. Further, total pipeline throughputs in the second quarter were 6 million barrels per day, up 1% from the year-ago quarter’s level.
Adjusted EBITDA from the Gathering and Processing segment totaled $524 million, up from $509 million in the prior-year quarter. The segment was aided by an increase in volumes, including contributions from the recently acquired assets. However, higher operating expenses offset the positives to some extent.
Gathering throughput volumes averaged 6.6 billion cubic feet per day (Bcf/d), implying a 7% increase from the year-ago period’s level. Natural gas processed volumes came in at 9.6 Bcf/d, indicating a 7% increase from the prior-year quarter’s level.
Costs and Expenses
MPLX’s total costs and expenses were $1.63 billion, up from the year-ago quarter’s reported figure of $1.52 billion. The increase can be attributed to higher operating expenses (including purchased product costs) and increased general and administrative expenses.
Cash Flow
Distributable cash flow in the quarter totaled $1.4 billion, providing 1.6X distribution coverage. The figure increased from $1.32 billion in the year-ago quarter.
Adjusted free cash flow increased to $1.45 billion from $1.16 billion in the corresponding period of 2023.
Balance Sheet
As of Jun 30, 2024, the partnership’s cash and cash equivalents were $2.5 billion, and its total debt amounted to $22.1 billion.
Outlook
MPLX maintains its projection for 2024 capital spending at $1.1 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, MPLX LP has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MPLX LP has a Zacks Rank #1 (Strong Buy). We expect an above average 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 3.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
The Williams Companies reported revenues of $2.34 billion in the last reported quarter, representing a year-over-year change of -5.9%. EPS of $0.43 for the same period compares with $0.42 a year ago.
The Williams Companies is expected to post earnings of $0.41 per share for the current quarter, representing a year-over-year change of -8.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Williams Companies. Also, the stock has a VGM Score of C.