MPLX Q3 adjusted EBITDA slightly beats estimates on natgas, NGL growth

Overview

• U.S. midstream operator's Q3 adjusted EBITDA rose 5% yr/yr, slightly beating analyst expectations

• Net income for Q3 declined from a year earlier

• Company raised quarterly distribution by 12.5% for third consecutive year

Outlook

• MPLX expects mid-single digit adjusted EBITDA growth as utilization rises and projects start up

• Company investing $2.9 bln in organic growth, mainly in natural gas and NGL infrastructure

• Company raised quarterly distribution by 12.5% for third consecutive year

Result Drivers

• NATURAL GAS AND NGL GROWTH - Co attributed results to ongoing expansion of natural gas and NGL infrastructure, per CEO Maryann Mannen

• NEW FACILITIES - Start-up of Harmon Creek III plant and expansion of Permian sour gas treating facility contributed to segment growth

• HIGHER RATES AND BLENDING - Crude Oil and Products Logistics segment growth driven by higher rates and increased butane blending, partly offset by higher expenses

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 8 "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 $63.22, about 7.3% above its November 2 closing price of $58.94

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 2 - US LNG exports hit second-highest monthly level on record as Europe demand surges

• Nov 1 - Venture Global begins supplying Plaquemines phase 1 customers under long-term LNG contracts

• Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)