Factors to Pay Attention to Ahead of MPLX's Q3 Earnings Release

MPLX LP MPLX is set to report third-quarter 2022 results on Nov 1, before the opening bell.

In the last reported quarter, MPLX surpassed the Zacks Consensus Estimate, thanks to higher contributions from logistics and storage operations, and the gathering and processing business. It beat the consensus estimates in all the prior four quarters, the average earnings surprise being 3%. This is depicted in the graph below:

Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of 81 cents has witnessed three downward revisions over the past 30 days. The estimated figure suggests an improvement of 9.5% from the prior-year reported number.

The consensus estimate for third-quarter revenues of $2.8 billion indicates a 7.8% increment from the year-ago reported figure.

Factors to Consider

In the September quarter of 2022, the pricing scenario of both oil and natural gas was healthier year over year. A favorable environment for exploration and production activities is likely to have aided upstream activities, increasing production.

Higher production volumes are expected to have increased demand for transportation and storage assets, thereby favoring midstream players like MPLX.

Earnings Whispers

Our proven model does not indicate 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 not the case here, as you will see below.

Earnings ESP: The partnership’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

While an earnings beat looks uncertain for MPLX, here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Viper Energy Partners LP VNOM has an Earnings ESP of +7.09% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viper Energy is scheduled to release third-quarter results on Nov 7. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 38 cents per share, suggesting an increase of almost 81% from the prior-year quarter’s reported figure.

Diamondback Energy, Inc. FANG has an Earnings ESP of +0.63% and a Zacks Rank of 3.

Diamondback is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for FANG’s earnings is pegged at $6.45 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Cactus, Inc. WHD has an Earnings ESP of +2.74% and a Zacks Rank #1.

Cactus is scheduled to release third-quarter earnings on Nov 7. The Zacks Consensus Estimate for WHD’s earnings is pegged at 49 cents per share, suggesting an increase of 157.9% from the prior-year quarter’s reported figure.

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

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