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MPLX LP (MPLX) Up 1.4% 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 1.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.
MPLX Q1 Earnings & Revenues Beat Estimates
MPLXreported first-quarter earnings of 68 cents per unit, beating the Zacks Consensus Estimate and improving from year-ago earnings, both recorded at 61 cents.
Revenues of $2,339 million increased from first-quarter 2020 sales of $992 million. Moreover, the top line beat the Zacks Consensus Estimate of $2,045 million.
The partnership’s strong quarterly results were driven by favorable average tariff rates from the crude oil pipelines.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $872 million a year ago to $896 million. Favorable average tariff rates from the crude oil pipelines aided the segment, partially offset by lower terminal throughput.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $456 million, up from $422 million in the prior-year quarter on higher fractionated volumes of C2 and NGLs.
Costs and Expenses
Total costs and expenses for the quarter were recorded at $1,365 million, down from the year-ago $3,478 million. Notably, expenses related to operations increased to $581 million from $538 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX in first-quarter 2021 was $1,137 million, providing 1.56X distribution coverage, up from $1,078 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 $1,124 million from $1,009 million recorded in the corresponding period of 2020.
Balance Sheet
As of Mar 31, 2021, the partnership’s cash and cash equivalents were $24 million. Its total long-term debt amounted to $20.1 billion, while debt to capitalization was 60.9%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, MPLX LP has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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 1.4% 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 1.4% 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 its most recent earnings report in order to get a better handle on the important catalysts.
MPLX Q1 Earnings & Revenues Beat Estimates
MPLXreported first-quarter earnings of 68 cents per unit, beating the Zacks Consensus Estimate and improving from year-ago earnings, both recorded at 61 cents.
Revenues of $2,339 million increased from first-quarter 2020 sales of $992 million. Moreover, the top line beat the Zacks Consensus Estimate of $2,045 million.
The partnership’s strong quarterly results were driven by favorable average tariff rates from the crude oil pipelines.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $872 million a year ago to $896 million. Favorable average tariff rates from the crude oil pipelines aided the segment, partially offset by lower terminal throughput.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $456 million, up from $422 million in the prior-year quarter on higher fractionated volumes of C2 and NGLs.
Costs and Expenses
Total costs and expenses for the quarter were recorded at $1,365 million, down from the year-ago $3,478 million. Notably, expenses related to operations increased to $581 million from $538 million in the prior-year quarter.
Cash Flow
Distributable cash flow attributable to MPLX in first-quarter 2021 was $1,137 million, providing 1.56X distribution coverage, up from $1,078 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 $1,124 million from $1,009 million recorded in the corresponding period of 2020.
Balance Sheet
As of Mar 31, 2021, the partnership’s cash and cash equivalents were $24 million. Its total long-term debt amounted to $20.1 billion, while debt to capitalization was 60.9%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, MPLX LP has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.