MPLX Set to Report Q4 Earnings: Is a Beat in the Offing?

MPLX LP MPLX is set to report fourth-quarter 2023 earnings on Jan 30, before the opening bell.

Let’s delve into the factors that are anticipated to have influenced this pipeline operator’s performance in the to-be-reported quarter. However, it is worth taking a look at MPLX’s previous quarter’s performance first.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the partnership’s earnings of 89 cents per unit missed the Zacks Consensus Estimate of 91 cents primarily due to increased total costs and expenses.

MPLX’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 1.5%. This is depicted in the graph below:

MPLX LP Price and EPS Surprise

 

MPLX LP Price and EPS Surprise

MPLX LP price-eps-surprise | MPLX LP Quote

Estimate Trend

The Zacks Consensus Estimate for MPLX’s fourth-quarter earnings per share of 95 cents has witnessed one upward revision and one downward movement over the past 30 days. The estimated figure suggests a 21.8% increase from the year-ago reported number.

The Zacks Consensus Estimate for fourth-quarter revenues of $2.9 billion indicates a 10.4% increase from the year-ago reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for MPLX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is just the case here.

Earnings ESP: MPLX has an Earnings ESP of +4.65%. This is because the Most Accurate Estimate is pegged at earnings of 99 cents per share, while the Zacks Consensus Estimate is pinned at earnings of 95 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MPLX currently carries a Zacks Rank #3.

Factors to Consider

Being a midstream energy player, MPLX has a stable business model and has not significantly been exposed to volatility in oil and natural gas prices. Thus, banking on a huge network of crude oil and refined products pipeline and storage assets, the partnership is likely to have generated stable fee-based revenues in the December-end quarter.

The Zacks Consensus Estimate for MPLX’s total pipeline throughput volumes for the fourth quarter is pegged at 5,832 million barrels per day (bpd), suggesting an increase from the 5,611 million bpd reported in the prior-year quarter.

The Zacks Consensus Estimate for adjusted EBITDA from MPLX’s Logistic and Storage segment for the fourth quarter is pegged at $1,071 million, suggesting an increase from the $979 million reported in the prior-year quarter. Also, the Zacks Consensus Estimate for Adjusted EBITDA from MPLX’s Gathering and Processing segment is pegged at $522 million, suggesting an increase from the $475 million reported in the prior-year quarter.

Estimates for most segments suggest year-over-year increases, in turn, implying an excellent performance for MPLX in the to-be-reported quarter.

Other Stocks to Consider

Here are some other firms that you may want to consider, as these, too, have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Marathon Petroleum MPC currently has an Earnings ESP of +2.21% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release fourth-quarter earnings on Jan 30. The Zacks Consensus Estimate for MPC’s earnings is pegged at $2.36 per share, suggesting a 64.5% decline from the year-ago reported figure.

Exxon Mobil Corporation XOM has an Earnings ESP of +0.48% and is currently a Zacks #3 Ranked player.

The company is scheduled to release fourth-quarter results on Feb 2. The Zacks Consensus Estimate for XOM’s earnings is pegged at $2.22 per share, suggesting a 34.7% decline from the year-ago reported figure.

CNX Resources CNX presently has an Earnings ESP of +6.17% and a Zacks Rank #3.

CNX Resources is scheduled to release fourth-quarter earnings on Jan 25. The Zacks Consensus Estimate for CNX’s earnings is pegged at 29 cents per share, indicating an 82.3% decline from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

CNX Resources Corporation. (CNX) : Free Stock Analysis Report

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MPLX LP (MPLX) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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