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MPLX Gains 3.1% on Q2 Earnings Beat, Boosts Unit Buyback
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MPLX LP (MPLX - Free Report) units have gained 3.1% after reporting strong second-quarter 2022 earnings on Aug 2, before the opening bell.
MPLX reported second-quarter earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The bottom line improved from the year-ago quarter’s 66 cents.
Total quarterly revenues of $2,940 million surpassed the Zacks Consensus Estimate of $2,489 million. The top line also increased from the prior-year quarter’s $2,395 million.
The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX’s board of directors authorized a unit repurchase program of up to an additional $1 billion of the outstanding publicly traded common units.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $947 million a year ago to $966 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the second quarter were 5.9 million barrels per day (bpd), marking a 6% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $491 million, up from $427 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.6 billion cubic feet per day (Bcf/d), suggesting an 11% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 1% increase from the year-ago quarter.
Costs and Expenses
For second-quarter 2022, total costs and expenses of MPLX were $1,823 million, up from the year-ago quarter’s $1,464 million.
Cash Flow
Distributable cash flow attributable to MPLX for second-quarter 2022 was $1,237 million, providing 1.69X distribution coverage, down from $1,250 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 increased to $1,349 million from $1,210 million recorded in the corresponding period of 2021.
Balance Sheet
As of Jun 30, 2022, the partnership’s cash and cash equivalents were $298 million. Its total debt amounted to $19.8 billion.
Outlook
For 2022, MPLX revealed its growth capital spending guidance of $700 million.
Zacks Rank & Stocks to Consider
MPLX currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid second-quarter earnings numbers and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras (PBR - Free Report) announced second-quarter earnings per American Depositary Share of $1.39, beating the Zacks Consensus Estimate of $1.14. The outperformance was driven by higher oil prices and strong downstream results.
Petrobras has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, and B for Momentum and Growth. PBR is expected to see earnings growth of 128.2% in 2022.
BP plc (BP - Free Report) reported second-quarter 2022 adjusted earnings of $2.61 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The company beat the Zacks Consensus Estimate of earnings of $2.20 per share on higher production and commodity price realizations.
BP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. BP is expected to see earnings growth of 116.2% in 2022.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2022 operating earnings of $3.75 per share, meeting the Zacks Consensus Estimate. The outperformance resulted from an increase in commodity prices.
TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. TTE is expected to see earnings growth of 107% in 2022.
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MPLX Gains 3.1% on Q2 Earnings Beat, Boosts Unit Buyback
MPLX LP (MPLX - Free Report) units have gained 3.1% after reporting strong second-quarter 2022 earnings on Aug 2, before the opening bell.
MPLX reported second-quarter earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 81 cents. The bottom line improved from the year-ago quarter’s 66 cents.
Total quarterly revenues of $2,940 million surpassed the Zacks Consensus Estimate of $2,489 million. The top line also increased from the prior-year quarter’s $2,395 million.
The strong quarterly results were supported by higher contributions from logistics and storage operations, and the gathering and processing business.
MPLX LP Price, Consensus and EPS Surprise
MPLX LP price-consensus-eps-surprise-chart | MPLX LP Quote
Unit Repurchases
MPLX’s board of directors authorized a unit repurchase program of up to an additional $1 billion of the outstanding publicly traded common units.
Segmental Highlights
MPLX’s adjusted EBITDA from the Logistics and Storage segment increased from $947 million a year ago to $966 million. Higher pipeline throughputs aided the segment. Total pipeline throughputs for the second quarter were 5.9 million barrels per day (bpd), marking a 6% increase from the year-ago period.
Adjusted EBITDA from the Gathering and Processing segment was recorded at $491 million, up from $427 million in the prior-year quarter. The segment benefited from a spike in natural gas liquid prices. Gathered volumes averaged 5.6 billion cubic feet per day (Bcf/d), suggesting an 11% increase from the year-ago period. Processed volumes of 8.5 Bcf/d marked a 1% increase from the year-ago quarter.
Costs and Expenses
For second-quarter 2022, total costs and expenses of MPLX were $1,823 million, up from the year-ago quarter’s $1,464 million.
Cash Flow
Distributable cash flow attributable to MPLX for second-quarter 2022 was $1,237 million, providing 1.69X distribution coverage, down from $1,250 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 increased to $1,349 million from $1,210 million recorded in the corresponding period of 2021.
Balance Sheet
As of Jun 30, 2022, the partnership’s cash and cash equivalents were $298 million. Its total debt amounted to $19.8 billion.
Outlook
For 2022, MPLX revealed its growth capital spending guidance of $700 million.
Zacks Rank & Stocks to Consider
MPLX currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid second-quarter earnings numbers and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras (PBR - Free Report) announced second-quarter earnings per American Depositary Share of $1.39, beating the Zacks Consensus Estimate of $1.14. The outperformance was driven by higher oil prices and strong downstream results.
Petrobras has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, and B for Momentum and Growth. PBR is expected to see earnings growth of 128.2% in 2022.
BP plc (BP - Free Report) reported second-quarter 2022 adjusted earnings of $2.61 per American Depositary Share on a replacement-cost basis, excluding non-operating items. The company beat the Zacks Consensus Estimate of earnings of $2.20 per share on higher production and commodity price realizations.
BP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth, and B for Momentum. BP is expected to see earnings growth of 116.2% in 2022.
TotalEnergies SE (TTE - Free Report) reported second-quarter 2022 operating earnings of $3.75 per share, meeting the Zacks Consensus Estimate. The outperformance resulted from an increase in commodity prices.
TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. TTE is expected to see earnings growth of 107% in 2022.