Magellan Midstream Partners LP MMP reported Q2 2023 revenues of $877.2 million, up from $788.6 million, beating the consensus of $797.9 million.
Operating profit in refined products stood at $234 million (up $67 million Y/Y), and crude oil was $61 million (down $12 million Y/Y) in the quarter.
Adjusted net income per unit of $1.23, beating the consensus of $1.10.
EPS benefitted from increased contributions from commodity-related activities, a higher proportion of longer-haul shipments, and increased average tariff rates.
Distributable cash flow (DCF) stood at $312 million vs $228 million a year ago.
Operating cash flow stood at $404.5 million in the quarter.
In Q2, Magellan inked a merger agreement with ONEOK Inc OKE in which ONEOK will acquire all outstanding units of Magellan in a cash-and-stock transaction valued at approximately $18.8 billion.
Outlook: Magellan Midstream expects Q3 net income per unit of $1.15 vs. consensus of $1.10.
Magellan Midstream raised FY23 net income per unit guidance from $4.95 to $5.05 (vs. consensus: $4.56) and DCF to $1.26 billion (vs. $1.22 billion earlier).
The company expects expansion capital spending of around $120 million in 2023 to advance projects already committed.
Price Action: MMP shares are trading higher by 0.06% at $65.10 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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