MPLX Q3 adjusted EBITDA slightly beats estimates on natgas, NGL growth
MPLX•MPLX reported Q3 adjusted EBITDA of $1.86 billion, slightly above the $1.85 billion consensus, while net income fell year over year. It raised its quarterly distribution 12.5% for the third consecutive year and expects mid-single-digit adjusted EBITDA growth.
1. Quarterly results
MPLX's Q3 adjusted EBITDA rose 5% year over year to $1.86 billion, slightly above analyst expectations of $1.85 billion. Net income was $1.16 billion, down from a year earlier.
2. Growth and distribution
The company attributed results to expansion of natural gas and NGL infrastructure. The start-up of the Harmon Creek III plant and an expansion of a Permian sour gas treating facility contributed to segment growth; higher rates and increased butane blending supported its Crude Oil and Products Logistics segment, partly offset by higher expenses.
3. Outlook and investment
MPLX expects mid-single-digit adjusted EBITDA growth as utilization rises and projects start up. It plans to invest $2.9 billion in organic growth, mainly in natural gas and NGL infrastructure, and raised its quarterly distribution 12.5% for the third consecutive year.
