MPLX Stock Declines 3.2% Despite Q1 Earnings & Revenue Beat
MPLX LP MPLX declined 3.2% despite reporting strong first-quarter 2023 results on May 2. Investors were probably concerned about the broader uncertain macro scenario. However, increased pipeline tariff rates and throughput aided the quarterly results.
MPLX reported first-quarter earnings of 91 cents per unit, beating the Zacks Consensus Estimate of 83 cents. The bottom line also improved from the year-ago quarter’s 78 cents.
Total quarterly revenues of $2,713 million surpassed the Zacks Consensus Estimate of $2,513 million. The top line improved from the prior-year quarter’s $2,610 million.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $904 million a year ago to $1,026 million. Higher pipeline tariff rates and throughput aided the segment. Total pipeline throughputs in the first quarter were 5.6 million barrels per day, up 6% from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was $493 million, up from $489 million in the prior-year quarter. The segment was favored by increased gathering throughput volumes. Gathering throughput volumes averaged 3.3 billion cubic feet per day (Bcf/d), reflecting a 6% rise from the year-ago period. Natural gas processed volumes of 6.3 Bcf/d marked a 2% increase.
Costs and Expenses
In first-quarter 2023, total costs and expenses of MPLX were $1,517 million, down from the year-ago quarter’s $1,550 million.
Cash Flow
Distributable cash flow attributable to MPLX in the quarter was $1,268 million, providing 1.6X distribution coverage, up from $1,210 million in the year-ago quarter.
Adjusted free cash flow in the quarter under review increased to $1,005 million from $850 million in the corresponding period of 2022.
Balance Sheet
As of Mar 31, 2023, the partnership’s cash and cash equivalents were $393 million. Its total debt amounted to $20.4 billion.
Zacks Rank & Stocks to Consider
Currently, MPLX carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Murphy USA Inc. MUSA, Sunoco LP SUN and Dril-Quip, Inc. DRQ. While Murphy USA and Dril-Quip carry a Zacks Rank #2 (Buy), Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA is a leading retailer of gasoline. MUSA has more than 1,700 stores and has witnessed upward earnings estimate revisions for 2023 earnings in the past seven days.
Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model. For this year, SUN has witnessed upward earnings estimate revisions in the past seven days.
Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector.
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