MPLX posts drop in Q2 net income
Overview
MPLX Q2 net income falls to $1.048 bln from $1.176 bln yr ago
Adjusted EBITDA rises to $1.690 bln, reflecting growth strategy execution
Result Drivers
CRUDE OIL LOGISTICS - Higher rates and throughputs drove growth in adjusted EBITDA, partially offset by increased operating expenses
NATURAL GAS SERVICES - Segment adjusted EBITDA slightly declined due to higher operating expenses and project spending, despite growth from equity affiliates
ACQUISITION STRATEGY - Planned acquisition of Northwind Midstream to enhance Permian operations and support future growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income |
| $1.05 bln |
|
Q2 Adjusted EBITDA |
| $1.69 bln |
|
Q2 Income from Operations |
| $1.29 bln |
|
Q2 Operating Expenses |
| $426 mln |
|
Q2 Pretax Profit |
| $1.06 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for MPLX LP is $56.50, about 6.7% above its August 4 closing price of $52.71
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nPn7t8hvTa
