MPLX Q4 Earnings Beat on Higher Throughput, Revenues Increase Y/Y

Core Insights - MPLX LP reported fourth-quarter 2024 earnings of $1.07 per unit, exceeding the Zacks Consensus Estimate of $1.04, but down from $1.10 in the previous year [1] - Total quarterly revenues reached $3.06 billion, slightly missing the Zacks Consensus Estimate of $3.08 billion, yet showing an increase from $2.97 billion year-over-year [1] Financial Performance - The better-than-expected earnings were driven by higher throughputs and contributions from newly acquired assets in the Utica and Permian Basins, although these were partially offset by increased costs and expenses [2] - Total costs and expenses rose to $1.72 billion from $1.59 billion a year ago, primarily due to higher operating expenses and increased depreciation and amortization [7] Segment Performance - Adjusted EBITDA from the Crude Oil and Products Logistics segment increased to $1.12 billion from $1.06 billion year-over-year, supported by higher rates and throughputs, with total pipeline throughputs averaging 5.9 million barrels per day, up 1% [4] - Adjusted EBITDA from the Natural Gas and NGL Services segment rose to $639 million from $560 million, driven by higher volumes and contributions from newly acquired assets [5] - Gathering throughput volumes averaged 6.7 billion cubic feet per day, reflecting an 8% increase, while natural gas processed volumes totaled 9.9 Bcf/d, indicating a 6% increase from the previous year [6] Cash Flow and Balance Sheet - Distributable cash flow for the quarter was $1.48 billion, providing 1.5X distribution coverage, an increase from $1.38 billion year-over-year [8] - Adjusted free cash flow rose to $1,324 million from $964 million in the same period of 2023 [8] - As of December 31, 2024, cash and cash equivalents stood at $1.52 billion, with total debt at $20.95 billion [9] Future Outlook - MPLX anticipates capital spending of approximately $2 billion for 2025, with allocations of $1.45 billion for Natural Gas and NGL Services growth, $250 million for Crude Oil and Products Logistics growth, and $300 million for maintenance capital [10]