We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MPLX LP (MPLX) Down 2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have lost about 2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MPLX LP due for a breakout? 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 catalysts.
MPLX Beats Q4 Earnings & Revenues Estimates
The partnership reported fourth-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate of 75 cents. The bottom line improved from the year-ago earnings of 63 cents per unit.
Total quarterly revenues of $2,734 million surpassed the Zacks Consensus Estimate of $2,354 million. Also, the top line increased from the prior-year quarter’s $2,249 million.
The strong quarterly results were supported by increased contributions from logistics and storage operations, as well as the gathering and processing business. Increased pipeline throughputs and natural gas liquid prices buoyed the fourth-quarter results.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $884 million a year ago to $934 million. Higher revenues and lower operating expenses aided the segment. Total pipeline throughputs for the fourth quarter were 5.6 million barrels per day (bpd), marking an 18% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $511 million, up from $471 million in the prior-year quarter. The segment benefited from higher natural gas liquid prices, partially offset by reduced processed and fractionated volumes. Gathered volumes averaged 5.4 billion cubic feet per day (Bcf/d), suggesting a 3% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 2% decrease from the fourth quarter of 2020.
Costs and Expenses
For fourth-quarter 2021, total costs and expenses were $1,678 million, up from the year-ago quarter’s $1,329 million. Expenses related to operations increased to $909 million from $519 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX for fourth-quarter 2021 was $1,207 million, providing 1.64X distribution coverage, up from $1,155 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter, up from 68.75 cents in the year-ago period.
Free cash flow for the quarter under review increased to $1,103 million from $988 million recorded in the corresponding period of 2020.
Balance Sheet
As of Dec 31, 2021, the partnership’s cash and cash equivalents were $13 million, down sequentially from $39 million. Its total debt amounted to $20 billion, up from the third quarter’s $19.6 billion.
Outlook
For 2022, MPLX expects total capital spending of $900 million. As such, growth capital will likely be $700 million, while maintenance capital will probably be $140 million. The spending budget also involves $60 million to repay its share of the Bakken pipeline joint venture debt due in 2022.
The majority of the capital budget is expected to be allocated at opportunities in the Marcellus, Permian and Bakken Play. The partnership expects to continue generating excess free cash flow, which will enhance financial flexibility, including the ability to return incremental capital to unitholders.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, MPLX LP has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MPLX LP (MPLX) Down 2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have lost about 2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MPLX LP due for a breakout? 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 catalysts.
MPLX Beats Q4 Earnings & Revenues Estimates
The partnership reported fourth-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate of 75 cents. The bottom line improved from the year-ago earnings of 63 cents per unit.
Total quarterly revenues of $2,734 million surpassed the Zacks Consensus Estimate of $2,354 million. Also, the top line increased from the prior-year quarter’s $2,249 million.
The strong quarterly results were supported by increased contributions from logistics and storage operations, as well as the gathering and processing business. Increased pipeline throughputs and natural gas liquid prices buoyed the fourth-quarter results.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $884 million a year ago to $934 million. Higher revenues and lower operating expenses aided the segment. Total pipeline throughputs for the fourth quarter were 5.6 million barrels per day (bpd), marking an 18% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $511 million, up from $471 million in the prior-year quarter. The segment benefited from higher natural gas liquid prices, partially offset by reduced processed and fractionated volumes. Gathered volumes averaged 5.4 billion cubic feet per day (Bcf/d), suggesting a 3% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 2% decrease from the fourth quarter of 2020.
Costs and Expenses
For fourth-quarter 2021, total costs and expenses were $1,678 million, up from the year-ago quarter’s $1,329 million. Expenses related to operations increased to $909 million from $519 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX for fourth-quarter 2021 was $1,207 million, providing 1.64X distribution coverage, up from $1,155 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter, up from 68.75 cents in the year-ago period.
Free cash flow for the quarter under review increased to $1,103 million from $988 million recorded in the corresponding period of 2020.
Balance Sheet
As of Dec 31, 2021, the partnership’s cash and cash equivalents were $13 million, down sequentially from $39 million. Its total debt amounted to $20 billion, up from the third quarter’s $19.6 billion.
Outlook
For 2022, MPLX expects total capital spending of $900 million. As such, growth capital will likely be $700 million, while maintenance capital will probably be $140 million. The spending budget also involves $60 million to repay its share of the Bakken pipeline joint venture debt due in 2022.
The majority of the capital budget is expected to be allocated at opportunities in the Marcellus, Permian and Bakken Play. The partnership expects to continue generating excess free cash flow, which will enhance financial flexibility, including the ability to return incremental capital to unitholders.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, MPLX LP has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.