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EPD, MMP, MPLX: How Their Earnings Growth Stacks Up

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Feb. 13 2019, Published 1:44 p.m. ET

Earnings growth

In the series EPD, MMP, and MPLX: Top Three MLPs for Income Investors, we discussed the yields, distribution growth, coverage, total returns, and analysts’ recommendations for Enterprise Products Partners (EPD), Magellan Midstream Partners (MMP), and MPLX (MPLX). In this series, we’ll look at the YoY EBITDA growth and capital expenditure for the three stocks.

Over the last eight quarters, Enterprise Products Partners’ analyst-adjusted EBITDA grew at an average rate of 18% YoY. In Q4 2018, EPD’s EBITDA grew 34% YoY. Strong liquid and natural gas pipeline volumes contributed to the company’s results for the quarter.

Magellan Midstream Partners’ analyst-adjusted EBITDA grew at an average rate of 10% over the last eight quarters. Magellan Midstream Partners’ EBITDA fell YoY in the first and second quarters of 2018. However, including commodity-related adjustments, MMP’s EBITDA grew YoY for the two quarters.

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MPLX’s earnings

MPLX’s EBITDA grew the most among the three companies. MPLX’s EBITDA grew at an average rate of 55% YoY over the last eight quarters. The company’s EBITDA grew 72% YoY in Q4 2018. Earnings from dropdown assets and strong volumes contributed to MPLX’s Q4 earnings growth. Dropdown assets largely contributed to MPLX’s exceptional EBITDA growth over the last several quarters.

Let’s next take a look at the companies’ upcoming capital projects that are expected to fuel their future earnings growth.

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