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MPLX LP (MPLX) Gains 2.7% Since Q1 Earnings Beat Estimates

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MPLX LP MPLX has gained 2.7% since it reported first-quarter 2021 results on May 4. Higher tariff rates and increased fractionated volumes primarily aided the stock.

The partnership reported first-quarter earnings of 68 cents per unit, beating the Zacks Consensus Estimate and improving from year-ago earnings, both recorded at 61 cents.

Revenues of $2,339 million increased from first-quarter 2020 sales of $992 million. Moreover, the top line beat the Zacks Consensus Estimate of $2,045 million.

The partnership’s strong quarterly results were driven by favorable average tariff rates from the crude oil pipelines.

MPLX LP Price, Consensus and EPS Surprise

MPLX LP Price, Consensus and EPS Surprise
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 from $872 million a year ago to $896 million. Favorable average tariff rates from the crude oil pipelines aided the segment, partially offset by lower terminal throughput.

Adjusted EBITDA from the Gathering and Processing segment was recorded at $456 million, up from $422 million in the prior-year quarter on higher fractionated volumes of C2 and NGLs.

Costs and Expenses

Total costs and expenses for the quarter were recorded at $1,365 million, down from the year-ago $3,478 million. Notably, expenses related to operations increased to $581 million from $538 million in the prior-year quarter.

Cash Flow

Distributable cash flow attributable to MPLX in first-quarter 2021 was $1,137 million, providing 1.56X distribution coverage, up from $1,078 million in the year-ago quarter. Distribution per unit was 68.75 cents for the reported quarter, flat with the year-ago quarter.

Net cash flow from operating activities for the quarter under review increased to $1,124 million from $1,009 million recorded in the corresponding period of 2020.

Balance Sheet

As of Mar 31, 2021, the partnership’s cash and cash equivalents were $24 million. Its total long-term debt amounted to $20.1 billion, while debt to capitalization was 60.9%.

Zacks Rank & Stocks to Consider

MPLX currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Matador Resources Company MTDR. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

Matador is likely to see earnings growth of 300% in 2021.

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