MPLX Q1 Earnings & Revenues Lag on Lower Throughput Volumes

Zacks Equity Research

1 May 2024 at 8:44 am·3-min read

MPLX LP MPLX reported first-quarter earnings of 98 cents per unit, which missed the Zacks Consensus Estimate of 99 cents. The bottom line, however, increased from the year-ago quarter’s figure of 91 cents.

Total quarterly revenues of $2.85 billion missed the Zacks Consensus Estimate of $2.93 million. However, the top line increased from the prior-year quarter’s level of $2.71 billion.

The underperformance can be attributed to decreased total pipeline throughputs and higher operating expenses.

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 to $1.1 billion from $1.03 billion a year ago. Increased rates and growth from equity affiliates aided the segment. However, total pipeline throughputs in the first quarter were 5.3 million barrels per day, down 6% from the year-ago level.

Adjusted EBITDA from the Gathering and Processing segment totaled $537 million, up from $493 million in the prior-year quarter. The segment benefited from higher throughput volumes. A non-cash gain of $20 million related to the acquisition of the remaining interest of a Utica joint venture also aided the segment.

Gathering throughput volumes averaged 6.2 billion cubic feet per day (Bcf/d), implying a marginal decline of 2% from the year-ago period’s level. Natural gas processed volumes of 9.4 Bcf/d marked a 9% increase from the prior-year quarter’s level.

Costs and Expenses

MPLX’s total costs and expenses were $1.6 billion, up from the year-ago quarter’s reported actuals of $1.5 billion. The increase can be attributed to higher operating expenses (including purchased product costs).

Cash Flow

Distributable cash flow in the quarter totaled $1.37 billion, providing 1.6X distribution coverage. The figure increased from $1.27 billion in the year-ago quarter.

Adjusted free cash flow declined to $294 million from $1 billion in the corresponding period of 2023.

Balance Sheet

As of Mar 31, 2024, the partnership’s cash and cash equivalents were $385 million. Its total debt amounted to $20.44 billion.

Outlook

For 2024, MPLX expects capital spending to amount to $1.1 billion, including $950 million of growth capital and $150 million of maintenance capital. The estimated figure indicates an increase from $838 million reported in 2023.

Zacks Rank and Other Key Picks

Currently, MPLX has a Zacks Rank #3 (Hold).

Some other top-ranked stocks in the energy sector are SM Energy SM, Hess Corporation HES and Sunoco LP SUN. SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, while Sunoco carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.

Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.

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

Hess Corporation (HES) : Free Stock Analysis Report

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