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Here's Why MPLX is Likely to Deliver Earnings Beat in Q2

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MPLX LP (MPLX - Free Report) is set to report second-quarter 2022 results on Aug 2, before the opening bell.

In the last reported quarter, the diversified, large-cap master limited partnership recorded earnings of 78 cents per unit, beating the Zacks Consensus Estimate by a penny on increased contributions from logistics and storage operations, as well as the gathering and processing business.

In the trailing four quarters, MPLX beat the Zacks Consensus Estimate for the bottom line thrice and met the same once, delivering an earnings surprise of 2.4%, on average. This is depicted in the graph below:

MPLX LP Price and EPS Surprise

 

MPLX LP Price and EPS Surprise

MPLX LP price-eps-surprise | MPLX LP Quote

Let’s see how things have shaped up prior to the announcement.

Estimate Trend

The Zacks Consensus Estimate for MPLX’s second-quarter earnings per unit of 81 cents has witnessed one upward revision and two downward movements in the past 30 days. The consensus estimate suggests a year-over-year increase of 22.7%.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $2.5 billion indicates a 2.6% improvement from the year-ago reported figure.

Earnings Whispers

Our proven model conclusively predicts an earnings beat for MPLX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is the case here.

Earnings ESP: MPLX has an Earnings ESP of +0.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MPLX currently carries a Zacks Rank #3.

Factors to Consider

MPLX provides a wide range of midstream energy services, including fuel distribution solutions. In the June-end quarter of 2022, the company is likely to have generated stable fee-based revenues from long-term contracts with energy infrastructure and logistics assets.

Rising commodity prices have changed the playing field for the mid-stream space in the second quarter. A healthier commodity price scenario is likely to have provided incentives to upstream players to ramp up exploration and production operations. Hence, crude oil and natural gas gathering systems and pipelines are expected to have generated significant cash flows for MPLX in the to-be-reported quarter.

Other Stocks That Warrant a Look

Here are some other companies from the Energy space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

ConocoPhillips (COP - Free Report) has an Earnings ESP of +1.21% and is a Zacks #3 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ConocoPhillips is scheduled to release second-quarter results on Aug 4. The Zacks Consensus Estimate for COP’s quarterly earnings is pegged at $3.78 per share, suggesting an increase of 197.6% from the prior-year reported figure.

Callon Petroleum Company (CPE - Free Report) currently has an Earnings ESP of +1.85% and is a Zacks #3 Ranked player.

Callon is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for CPE’s quarterly earnings is pegged at $3.90 per share, suggesting an increase of 161.7% from the prior-year figure.

Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3 at present.

Diamondback is scheduled to release second-quarter earnings on Aug 1. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.65 per unit, suggesting a massive improvement from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.