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MPLX LP (MPLX) Up 3.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 3.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MPLX LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MPLX Q4 Earnings Miss Estimates, Revenues Beat
MPLXreported fourth-quarter earnings of 63 cents per unit, missing the Zacks Consensus Estimate by a penny. The bottom line, however, improved from the year-ago comparable quarter’s loss of 58 cents per unit.
Revenues of $2,249 million declined from fourth-quarter 2019 sales of $2,316 million. However, the top line beat the Zacks Consensus Estimate of $2,095 million.
The partnership’s improvement in year-over-year earnings was aided by favorable average tariff rates from the crude oil and product pipelines. This was partially offset by lower terminal throughput volumes.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $853 million a year ago to $884 million. Favorable average tariff rates from the crude oil and product pipelines aided the segment, partially offset by lower terminal throughput.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $471 million, up from $466 million in the prior-year quarter. The outperformance was driven by higher fractionated volumes of C2 and NGLs.
Costs and Expenses
Total costs and expenses for the quarter were recorded at $1,329 million, down from the year-ago level of $2,662 million. Expenses related to operations declined to $519 million from $625 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX in fourth-quarter 2020 was $1,155 million, providing 1.58X distribution coverage, up from $1,045 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 $1,185 million from $1,092 million recorded in the corresponding period of 2019.
Balance Sheet
As of Dec 31, 2020, the partnership’s cash and cash equivalents were $15 million. Its total long-term debt amounted to $20.1 billion, while debt to capitalization was 60.7%.
Outlook
The partnership foresees capital investment of $800 million for growth projects in 2021 that will probably generate best returns and will add to cashflows.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted 10.67% due to these changes.
VGM Scores
At this time, MPLX LP has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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MPLX LP (MPLX) Up 3.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have added about 3.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MPLX LP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MPLX Q4 Earnings Miss Estimates, Revenues Beat
MPLXreported fourth-quarter earnings of 63 cents per unit, missing the Zacks Consensus Estimate by a penny. The bottom line, however, improved from the year-ago comparable quarter’s loss of 58 cents per unit.
Revenues of $2,249 million declined from fourth-quarter 2019 sales of $2,316 million. However, the top line beat the Zacks Consensus Estimate of $2,095 million.
The partnership’s improvement in year-over-year earnings was aided by favorable average tariff rates from the crude oil and product pipelines. This was partially offset by lower terminal throughput volumes.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $853 million a year ago to $884 million. Favorable average tariff rates from the crude oil and product pipelines aided the segment, partially offset by lower terminal throughput.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $471 million, up from $466 million in the prior-year quarter. The outperformance was driven by higher fractionated volumes of C2 and NGLs.
Costs and Expenses
Total costs and expenses for the quarter were recorded at $1,329 million, down from the year-ago level of $2,662 million. Expenses related to operations declined to $519 million from $625 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX in fourth-quarter 2020 was $1,155 million, providing 1.58X distribution coverage, up from $1,045 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 $1,185 million from $1,092 million recorded in the corresponding period of 2019.
Balance Sheet
As of Dec 31, 2020, the partnership’s cash and cash equivalents were $15 million. Its total long-term debt amounted to $20.1 billion, while debt to capitalization was 60.7%.
Outlook
The partnership foresees capital investment of $800 million for growth projects in 2021 that will probably generate best returns and will add to cashflows.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted 10.67% due to these changes.
VGM Scores
At this time, MPLX LP has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.