MPLX Q2 Earnings Top on Higher Throughput Volumes

MPLX LP MPLX reported second-quarter 2024 earnings of $1.15 per unit, which topped the Zacks Consensus Estimate of 98 cents. The bottom line also increased from the year-ago quarter's figure of 91 cents.

Total quarterly revenues of $3.05 billion beat the Zacks Consensus Estimate of $2.92 billion. The top line also increased from the prior-year quarter's level of $2.69 billion.

Strong quarterly results were primarily driven by higher gathered and processed throughput volumes. An increase in total pipeline throughputs also contributed to the same.

Segmental Highlights

MPLX's adjusted EBITDA from the Logistics and Storage segment increased to $1.13 billion from $1.02 billion a year ago. The strong performance was driven by increased rates, including growth from equity affiliates. Further, total pipeline throughputs in the second quarter were 6 million barrels per day, up 1% from the year-ago quarter's level.

Adjusted EBITDA from the Gathering and Processing segment totaled $524 million, up from $509 million in the prior-year quarter. The segment was aided by an increase in volumes, including contributions from the recently acquired assets. However, higher operating expenses offset the positives to some extent.

Gathering throughput volumes averaged 6.6 billion cubic feet per day (Bcf/d), implying a 7% increase from the year-ago period's level. Natural gas processed volumes came in at 9.6 Bcf/d, indicating a 7% increase from the prior-year quarter's level.

Costs and Expenses

MPLX's total costs and expenses were $1.63 billion, up from the year-ago quarter's reported figure of $1.52 billion. The increase can be attributed to higher operating expenses (including purchased product costs) and increased general and administrative expenses.

Cash Flow

Distributable cash flow in the quarter totaled $1.4 billion, providing 1.6X distribution coverage. The figure increased from $1.32 billion in the year-ago quarter.

Adjusted free cash flow increased to $1.45 billion from $1.16 billion in the corresponding period of 2023.

Balance Sheet

As of Jun 30, 2024, the partnership's cash and cash equivalents were $2.5 billion, and its total debt amounted to $22.1 billion.

Outlook

MPLX has reiterated its projection for 2024 capital spending to $1.1 billion.

Zacks Rank and Key Picks

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

Some better-ranked stocks in the energy sector are SM Energy SM, VAALCO Energy EGY and Energy Transfer LP ET. SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each.

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company's production outlook seems bright.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company's outlook seems positive.

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