Is a Beat in the Offing for MPLX This Earnings Season?

MPLX LP MPLX is set to report third-quarter 2023 earnings on Oct 31, before the opening bell.

In the last reported quarter, the partnership’s earnings of 91 cents per share beat the Zacks Consensus Estimate of 86 cents, thanks to increased pipeline throughputs and gathering throughput. MPLX’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 6.7%. This is depicted in the graph below:

MPLX LP Price and EPS Surprise

MPLX LP Price and EPS Surprise

MPLX LP price-eps-surprise | MPLX LP Quote

Estimate Trend

The Zacks Consensus Estimate for third-quarter earnings per share of 91 cents has witnessed one upward revision over the past 30 days. The estimated figure suggests a 5.2% decline from the year-ago reported number.

The Zacks Consensus Estimate for third-quarter revenues of $2.7 billion indicates a 21.7% decline from the year-ago reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for MPLX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here.

Earnings ESP: MPLX has an Earnings ESP of +0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MPLX currently carries a Zacks Rank #2.

Factors to Consider

Being a midstream energy player, MPLX has a stable business model and is not significantly exposed to volatility in oil and natural gas prices. Thus, banking on a huge network of crude oil and refined products pipeline and storage assets, the partnership is likely to have generated stable fee-based revenues in the September quarter.

The favorable crude oil pricing scenario in the third quarter is likely to have aided production, which in turn is expected to have improved demand for midstream assets. Thus, we expect crude oil pipeline throughput volumes to have increased 2.9% year over year in the third quarter.

Other Stocks to Consider

Here are some other firms that you may want to consider, as these, too, have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Viper Energy Partners LP VNOM currently has an Earnings ESP of +18.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago figure.

Callon Petroleum Company CPE has an Earnings ESP of +2.88% and is currently a Zacks #2 Ranked player.

The company is scheduled to release third-quarter results on Nov 1. The Zacks Consensus Estimate for CPE’s earnings is pegged at $1.76 per share.

Chevron Corporation CVX has an Earnings ESP of +1.13% and is a Zacks #2 Ranked player at present.

Chevron is scheduled to release third-quarter results on Oct 27. The Zacks Consensus Estimate for CVX’s earnings is pegged at $3.63 per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Chevron Corporation (CVX) : Free Stock Analysis Report

MPLX LP (MPLX) : Free Stock Analysis Report

Callon Petroleum Company (CPE) : Free Stock Analysis Report

Viper Energy Partners LP (VNOM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research