MPLX Q2 Earnings Beat on Gathering & Pipeline Throughput
MPLX LP MPLX reported second-quarter earnings of 91 cents per unit, beating the Zacks Consensus Estimate of 86 cents. The bottom line also improved from the year-ago quarter’s 83 cents.
Total quarterly revenues of $2,690 million surpassed the Zacks Consensus Estimate of $2,483.5 million. The top line declined from the prior-year quarter’s $2,940 million.
Strong quarterly earnings were owing to increased pipeline throughputs and gathering throughput.
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 $966 million a year ago to $1,022 million and surpassed our estimate of $889 million. Increased rates and growth in throughput aided the segment. Total pipeline throughputs in the second quarter were 6 million barrels per day, up by a marginal 1% from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was $509 million, up from $491 million in the prior-year quarter and beating our estimate of $482.9 million. The segment was favored by increased gathering throughput volumes. Gathering throughput volumes averaged 6.2 billion cubic feet per day (Bcf/d), reflecting a 9% rise from the year-ago period. Natural gas processed volumes of 8.9 Bcf/d marked a 6% increase.
Costs and Expenses
In second-quarter 2023, total costs and expenses of MPLX were $1,515 million, down from the year-ago quarter’s $1,823 million.
Cash Flow
Distributable cash flow attributable to MPLX in the quarter was $1,315 million, providing 1.7X distribution coverage, up from $1,237 million in the year-ago quarter.
Adjusted free cash flow in the quarter under review decreased to $1,162 million from $1,349 million in the corresponding period of 2022.
Balance Sheet
As of Jun 30, 2023, the partnership’s cash and cash equivalents were $755 million. Its total debt amounted to $20.4 billion.
Zacks Rank & Stocks to Consider
MPLX currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Evolution Petroleum Corporation EPM, Oceaneering International, Inc. OII and Murphy USA MUSA. While Evolution Petroleum and Oceaneering carry a Zacks Rank #2 (Buy), Murphy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Oceaneering International is well placed on improving oil prices since it is a leading provider of engineered services and products and robotic solutions to the energy companies working offshore. Higher oil price is supporting increased upstream activities, which, in turn, will improve demand for Oceaneering’s drilling and completions support services.
Murphy, a leading retailer of gasoline and convenience merchandise, has a solid business model.
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Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
