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Magellan (MMP) Q3 Earnings & Sales Beat Estimates, Dividend Up
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Magellan Midstream Partners, L.P. , the diversified energy infrastructure provider, reported a third-quarter adjusted net income of $1.29 per unit, higher than the Zacks Consensus Estimate of $1.14. The outperformance could be attributed to much higher revenues in the reported quarter.
Moreover, the bottom line outperformed the year-earlier quarter’s earnings of $1.09 per unit.
Magellan Midstream’s revenues of $876.1 million rose about 37.1% from the third quarter of 2021 and beat the Zacks Consensus Estimate of $734 million by 19.4%.
In good news for investors, MMP declared a quarterly cash distribution of $1.0475 per unit for the reported quarter, greater than the $1.0375 paid for both the second quarter of 2022 and the third quarter of 2021. The amount will be paid out on Nov 14 to its unitholders of record as of Nov 7.
Operational Performance
Refined Products: The operating margin of $383.9 million was up from the year-ago period’s $272.5 million. Transportation and terminal revenues improved about 5.9% to $370.1 million, primarily due to higher average transportation rates.
The increase in the product margin was primarily because of unrealized gains on future contracts and higher margins and higher sales volumes on the firm’s gas-liquid blending activities in the current quarter.
Crude Oil: The operating margin of $126.9 million increased 13.81% from the 2021 third quarter’s figure of $111.5 million. Meanwhile, transportation and terminal revenues decreased by about 2.6% from the last year’s quarter figure to $113.8 million due to lower committed shipments on MMP’s Longhorn pipeline system in the current period.
Magellan Midstream Partners, L.P. Price, Consensus and EPS Surprise
Magellan Midstream’s DCF for the third quarter was up 4.7% from the last year’s figure of $277 million to $290 million.
2022 Guidance
For 2022, MMP increased its 2022 DCF guidance from $1.09 billion $1.1 billion.
The partnership updated its 2022 free cash flow guidance from $1.45 billion or $575 million after distributions to $1.45 billion or $580 million after distributions.
Based on third-quarter results and the current number of shares outstanding, the net income per unit is now estimated at $5.25 for 2022, with the fourth-quarter guidance of $1.22 per unit.
The Zacks Consensus Estimate for Earthstone’s 2022 earnings is pegged at $5.76 per share, indicating an increase of about 360.8% from the year-ago earnings of $1.25.
ESTE beat the consensus mark for earnings in three of the trailing four quarters, the average being around 12.2%.
Estimates for Phillips’ 2022 earnings stand at $17.26 per share, up about 202.8% from the year-ago earnings of $5.70.
PSX beat the consensus estimate for earnings in all the trailing four quarters, the average being around 28%.
The Zacks Consensus Estimate for Delek’s 2022 earnings stands at $6.55 per share, which implies an increase of about 316.2% from the year-ago loss of $3.03.
DK beat estimates for earnings in all the trailing four quarters, the average being around 179.9%.
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Magellan (MMP) Q3 Earnings & Sales Beat Estimates, Dividend Up
Magellan Midstream Partners, L.P. , the diversified energy infrastructure provider, reported a third-quarter adjusted net income of $1.29 per unit, higher than the Zacks Consensus Estimate of $1.14. The outperformance could be attributed to much higher revenues in the reported quarter.
Moreover, the bottom line outperformed the year-earlier quarter’s earnings of $1.09 per unit.
Magellan Midstream’s revenues of $876.1 million rose about 37.1% from the third quarter of 2021 and beat the Zacks Consensus Estimate of $734 million by 19.4%.
In good news for investors, MMP declared a quarterly cash distribution of $1.0475 per unit for the reported quarter, greater than the $1.0375 paid for both the second quarter of 2022 and the third quarter of 2021. The amount will be paid out on Nov 14 to its unitholders of record as of Nov 7.
Operational Performance
Refined Products: The operating margin of $383.9 million was up from the year-ago period’s $272.5 million. Transportation and terminal revenues improved about 5.9% to $370.1 million, primarily due to higher average transportation rates.
The increase in the product margin was primarily because of unrealized gains on future contracts and higher margins and higher sales volumes on the firm’s gas-liquid blending activities in the current quarter.
Crude Oil: The operating margin of $126.9 million increased 13.81% from the 2021 third quarter’s figure of $111.5 million. Meanwhile, transportation and terminal revenues decreased by about 2.6% from the last year’s quarter figure to $113.8 million due to lower committed shipments on MMP’s Longhorn pipeline system in the current period.
Magellan Midstream Partners, L.P. Price, Consensus and EPS Surprise
Magellan Midstream Partners, L.P. price-consensus-eps-surprise-chart | Magellan Midstream Partners, L.P. Quote
Distributable Cash Flow
Magellan Midstream’s DCF for the third quarter was up 4.7% from the last year’s figure of $277 million to $290 million.
2022 Guidance
For 2022, MMP increased its 2022 DCF guidance from $1.09 billion $1.1 billion.
The partnership updated its 2022 free cash flow guidance from $1.45 billion or $575 million after distributions to $1.45 billion or $580 million after distributions.
Based on third-quarter results and the current number of shares outstanding, the net income per unit is now estimated at $5.25 for 2022, with the fourth-quarter guidance of $1.22 per unit.
Zacks Rank
Magellan Midstream currently carries a Zacks Rank #2 (Buy). Some other similar-ranked stocks from the energy space that warrant a look include Earthstone Energy , Phillips 66 (PSX - Free Report) and Delek US Holdings (DK - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Earthstone’s 2022 earnings is pegged at $5.76 per share, indicating an increase of about 360.8% from the year-ago earnings of $1.25.
ESTE beat the consensus mark for earnings in three of the trailing four quarters, the average being around 12.2%.
Estimates for Phillips’ 2022 earnings stand at $17.26 per share, up about 202.8% from the year-ago earnings of $5.70.
PSX beat the consensus estimate for earnings in all the trailing four quarters, the average being around 28%.
The Zacks Consensus Estimate for Delek’s 2022 earnings stands at $6.55 per share, which implies an increase of about 316.2% from the year-ago loss of $3.03.
DK beat estimates for earnings in all the trailing four quarters, the average being around 179.9%.