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MPLX Q2 Earnings Miss Estimates on Higher Operating Expenses

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Key Takeaways

  • MPLX posted Q2 EPS of $1.03 and $3B in revenue, missing estimates and falling below prior-year results.
  • Gathering throughput fell 1% while segment EBITDA dipped due to higher expenses and project spending.
  • Adjusted free cash flow dropped to $1.13B, down from $1.45B in Q2 2024, despite stronger pipeline throughputs.

MPLX LP (MPLX - Free Report) reported second-quarter 2025 earnings of $1.03 per unit, which missed the Zacks Consensus Estimate of $1.07. The bottom line also declined from the year-ago quarter’s level of $1.15.

Total quarterly revenues of $3 billion missed the Zacks Consensus Estimate of $3.2 billion. The top line also decreased from the prior-year level of $3.1 billion.

The weak quarterly results can be primarily attributed to a decrease in gathering throughput volumes and higher operating expenses.

MPLX LP Price, Consensus and EPS Surprise

MPLX LP Price, Consensus and EPS Surprise

MPLX LP price-consensus-eps-surprise-chart | MPLX LP Quote

Segmental Highlights

MPLX LP has redefined its reporting segments as Crude Oil and Products Logistics (previously known as Logistics and Storage), and Natural Gas and NGL Services (formerly known as Gathering and Processing).

MPLX’s adjusted EBITDA from the Crude Oil and Products Logistics segment increased to $1.14 billion from $1.1 billion a year ago. The improvement was driven primarily by higher rates and increased throughputs. Total pipeline throughputs in the quarter were 6.1 million barrels per day (mbpd), up 1% from the prior-year quarter’s level of 6.02 mbpd.

Adjusted EBITDA from the Natural Gas and NGL Services segment amounted to $552 million, slightly below $554 million in the year-ago quarter. The segment was affected by higher operating expenses and project spending.

Gathering throughput volumes averaged 6.56 billion cubic feet per day (Bcf/d), implying a 1% decrease from the year-ago level. Natural gas processed volumes totaled 9.7 Bcf/d, indicating a 2% improvement from the year-ago level.

Costs and Expenses

Total costs and expenses were $1.71 billion, up from the year-ago reported figure of $1.63 billion. The increase was driven primarily by higher operating expenses (including purchased product costs).

Cash Flow

Distributable cash flow in the quarter totaled $1.42 billion, providing 1.5x distribution coverage. The figure increased from $1.4 billion in the year-ago quarter.

Adjusted free cash flow declined to $1.13 billion from $1.45 billion in the corresponding period of 2024.

Balance Sheet

As of June 30, 2025, the partnership’s cash and cash equivalents were $1.4 billion, and its total debt amounted to $21.2 billion.

MPLX’s Zacks Rank & Key Picks

Currently, MPLX carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Antero Midstream Corporation (AM - Free Report) , Galp Energia SGPS SA (GLPEY - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

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