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MPLX LP (MPLX) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have lost about 2.6% 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 drivers.
MPLX Q1 Earnings & Revenues Surpass Estimates
MPLXreported first-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago earnings of 68 cents.
Total quarterly revenues of $2,610 million surpassed the Zacks Consensus Estimate of $2,373 million. Also, the top line increased from the prior-year quarter’s $2,339 million.
The strong quarterly results of MPLX were supported by increased contributions from logistics and storage operations, as well as the gathering and processing business.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $896 million a year ago to $904 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the first quarter were 5.3 million barrels per day (bpd), marking a 4% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $489 million, up from $456 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.3 billion cubic feet per day (Bcf/d), suggesting a 4% increase from the year-ago period. Processed volumes of 8.3 Bcf/d marked a 1% decline from the year-ago quarter.
Costs and Expenses
For first-quarter 2022, total costs and expenses of MPLX were $1,550 million, up from the year-ago quarter’s $1,365 million.
Cash Flow
Distributable cash flow attributable to MPLX for first-quarter 2022 was $1,210 million, providing 1.65X distribution coverage, up from $1,137 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter.
Free cash flow for the quarter under review decreased to $850 million from $1,031 million recorded in the corresponding period of 2021.
Balance Sheet
As of Mar 31, 2022, the partnership’s cash and cash equivalents were $42 million. Its total debt amounted to $20.1 billion.
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 a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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 these revisions indicates a downward shift. Notably, MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MPLX LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Kinder Morgan (KMI - Free Report) , has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Kinder Morgan reported revenues of $4.29 billion in the last reported quarter, representing a year-over-year change of -17.6%. EPS of $0.32 for the same period compares with $0.60 a year ago.
For the current quarter, Kinder Morgan is expected to post earnings of $0.26 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.5% over the last 30 days.
Kinder Morgan has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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MPLX LP (MPLX) Down 2.6% 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 2.6% 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 drivers.
MPLX Q1 Earnings & Revenues Surpass Estimates
MPLXreported first-quarter earnings of 78 cents per unit, beating the Zacks Consensus Estimate by a penny. The bottom line improved from the year-ago earnings of 68 cents.
Total quarterly revenues of $2,610 million surpassed the Zacks Consensus Estimate of $2,373 million. Also, the top line increased from the prior-year quarter’s $2,339 million.
The strong quarterly results of MPLX were supported by increased contributions from logistics and storage operations, as well as the gathering and processing business.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $896 million a year ago to $904 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the first quarter were 5.3 million barrels per day (bpd), marking a 4% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $489 million, up from $456 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.3 billion cubic feet per day (Bcf/d), suggesting a 4% increase from the year-ago period. Processed volumes of 8.3 Bcf/d marked a 1% decline from the year-ago quarter.
Costs and Expenses
For first-quarter 2022, total costs and expenses of MPLX were $1,550 million, up from the year-ago quarter’s $1,365 million.
Cash Flow
Distributable cash flow attributable to MPLX for first-quarter 2022 was $1,210 million, providing 1.65X distribution coverage, up from $1,137 million in the year-ago quarter. Distribution per unit was 70.5 cents for the reported quarter.
Free cash flow for the quarter under review decreased to $850 million from $1,031 million recorded in the corresponding period of 2021.
Balance Sheet
As of Mar 31, 2022, the partnership’s cash and cash equivalents were $42 million. Its total debt amounted to $20.1 billion.
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 a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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 these revisions indicates a downward shift. Notably, MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
MPLX LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Kinder Morgan (KMI - Free Report) , has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Kinder Morgan reported revenues of $4.29 billion in the last reported quarter, representing a year-over-year change of -17.6%. EPS of $0.32 for the same period compares with $0.60 a year ago.
For the current quarter, Kinder Morgan is expected to post earnings of $0.26 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.5% over the last 30 days.
Kinder Morgan has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.