Why Is MPLX LP (MPLX) Down 1.5% Since Last Earnings Report?

Core Viewpoint - MPLX LP reported mixed results in its fourth-quarter earnings, with earnings per unit beating estimates but total revenues falling short of expectations [2][3]. Financial Performance - Fourth-quarter earnings were $1.07 per unit, exceeding the Zacks Consensus Estimate of $1.04, but down from $1.10 in the same quarter last year [2]. - Total revenues for the quarter were $3.06 billion, missing the Zacks Consensus Estimate of $3.08 billion, but up from $2.97 billion year-over-year [2]. Operational Highlights - The better-than-expected earnings were driven by higher throughput and contributions from newly acquired assets in the Utica and Permian Basins, although these positives were partially offset by increased costs and expenses [3]. - Adjusted EBITDA from the Crude Oil and Products Logistics segment rose to $1.12 billion from $1.06 billion a year ago, supported by increased rates and higher throughput, with total pipeline throughput averaging 5.9 million barrels per day, a 1% increase from the prior year [5]. - Adjusted EBITDA from the Natural Gas and NGL Services segment increased to $639 million from $560 million, driven by higher volumes and contributions from new assets [6]. Cost and Expenses - Total costs and expenses increased to $1.72 billion from $1.59 billion year-over-year, primarily due to higher operating expenses and increased depreciation and amortization [8]. Cash Flow and Balance Sheet - Distributable cash flow for the quarter was $1.48 billion, providing 1.5X distribution coverage, up from $1.38 billion in the previous year [9]. - Adjusted free cash flow rose to $1,324 million from $964 million year-over-year [9]. - As of December 31, 2024, cash and cash equivalents were $1.52 billion, with total debt at $20.95 billion [10]. 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 [11]. - Estimates for the stock have trended upward recently, indicating a promising outlook [12][14].