MPLX LP MPLX reported fourth-quarter 2024 earnings of $1.07 per unit, which topped the Zacks Consensus Estimate of $1.04. The bottom line, however, declined from the year-ago quarter’s level of $1.10.

Total quarterly revenues of $3.06 billion missed the Zacks Consensus Estimate of $3.08 billion. The top line, however, increased from the prior-year level of $2.97 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Better-than-expected quarterly earnings were primarily driven by higher throughputs and increased contributions from the partnership’s newly acquired assets in the Utica and Permian Basins. The positives were partially offset by increased total costs and expenses.

Segmental Highlights

MPLX LP has redefined its reporting segments to 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 $1.12 billion from $1.06 billion a year ago. The growth was driven by increased rates and higher throughputs. Total pipeline throughputs in the quarter were 5.9 million barrels per day, up 1% from the prior-year level.

Adjusted EBITDA from the Natural Gas and NGL Services segment amounted to $639 million, up from $560 million a year ago. The increase was primarily driven by higher volumes, including contributions from the newly acquired assets in the Utica and Permian Basins and growth from equity affiliates.

Gathering throughput volumes averaged 6.7 billion cubic feet per day (Bcf/d), implying an 8% increase from the year-ago level. Natural gas processed volumes totaled 9.9 Bcf/d, indicating a 6% increase from the year-ago level.

Costs and Expenses

Total costs and expenses were $1.72 billion, up from the year-ago reported figure of $1.59 billion. The increase was primarily due to higher operating expenses (including purchased product costs). Increased depreciation and amortization expenses also contributed to the rise.

Cash Flow

Distributable cash flow in the quarter totaled $1.48 billion, providing 1.5X distribution coverage. The figure increased from $1.38 billion in the year-ago quarter.

Adjusted free cash flow increased to $1,324 million from $964 million in the corresponding period of 2023.

Balance Sheet

As of Dec. 31, 2024, the partnership’s cash and cash equivalents were $1.52 billion, and its total debt amounted to $20.95 billion.

Outlook

MPLX expects capital spending for 2025 to be approximately $2 billion. Of this, $1.45 billion has been allocated for Natural Gas and NGL Services growth capital, $250 million for Crude Oil and Products Logistics growth capital, and $300 million for maintenance capital.

MPLX’s Zacks Rank and Key Picks

MPLX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Sunoco LP SUN, SM Energy SM and Archrock Inc. AROC. Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, while Archrock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The increased production, combined with the favorable oil price environment, is expected to positively contribute to its bottom line.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

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