MPLX LP MPLX reported third-quarter 2024 earnings of $1.01 per unit, which missed the Zacks Consensus Estimate of $1.06. The bottom line, however, increased from the year-ago figure of 89 cents.

Total quarterly revenues of $2.97 billion missed the Zacks Consensus Estimate of $3.06 billion. The top line, however, increased from the prior-year level of $2.91 billion.

Lower-than-expected quarterly results were mainly due to higher depreciation and amortization costs and increased general and administrative expenses. The negatives were partially offset by higher throughput and increased gathered and processed volumes.

Segmental Highlights

MPLX’s adjusted EBITDA from the Logistics and Storage segment increased to $1.16 billion from $1.09 billion a year ago. The growth was driven by increased rates and higher throughputs, including growth from equity affiliates. Total pipeline throughputs in the quarter were 6 million barrels per day, up 1% from the prior-year level.

Adjusted EBITDA from the Gathering and Processing segment amounted to $557 million, up from $505 million a year ago. The increase can be primarily attributed to higher gathered and processed volumes, including contributions from its acquired assets in the Utica Basin and Permian Basin.

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 came in at 9.8 Bcf/d, reflecting a 9% increase from the year-ago quarter’s level.

Costs and Expenses

Total costs and expenses amounted to $1.7 billion, down from the year-ago reported figure of $1.76 billion. The decrease was primarily due to a reduction in operating expenses (including purchased product costs).

Cash Flow

Distributable cash flow in the quarter totaled $1.45 billion, providing 1.5X distribution coverage. The figure increased from $1.37 billion in the year-ago quarter.

Adjusted free cash flow declined to $876 million from $1 billion in the corresponding period of 2023.

Balance Sheet

As of June 30, 2024, the partnership’s cash and cash equivalents were $2.43 billion, and its total debt amounted to $22.1 billion.

Outlook

MPLX expects capital spending for 2024 to be above $1 billion.

MPLX’s Zacks Rank and Key Picks

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

Some better-ranked stocks in the energy sector are Archrock Inc. AROC, The Williams Companies, Inc. WMB and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and FuelCell Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

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.

The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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