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Magellan Midstream (MMP) Q2 Earnings, Revenue Beat Estimate

Have you been eager to see how pipeline operator Magellan Midstream Partners L.P. MMP performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Tulsa, OK-based partnership’s earnings release this morning:

About Magellan Midstream: Structured as a master limited partnership, Magellan Midstream owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores, and distributes refined petroleum products and, to a lesser extent, ammonia. Magellan conducts its operations in three segments: Refined Products, Crude Oil, and Marine Storage.

Zacks Rank & Surprise History: Currently, Magellan Midstream has a Zacks Rank #3 (Hold) but that could change following its second quarter 2017 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Coming to earnings surprise history, the company has an excellent record: its beaten estimates in each of the last four quarters resulting in an average positive surprise of 8.82%.

Estimate Revision Trend: Investors should note that the earnings estimates for Magellan Midstream was unmoved prior to the earnings release. The Zacks Consensus Estimate remained the same over the last 7 days.

We have highlighted some of the key details from the just-released announcement below:

A Bigger-than-Expected Profit: Adjusted earnings per unit came in at 92 cents, better than the Zacks Consensus Estimate of 89 cents. Solid contribution from all operating segments led to the outperformance.

Revenue Came in Higher than Expected: Magellan Midstream reported revenues of $619.4 million, above the Zacks Consensus Estimate of $561 million.

Key Stats: Operating margin from the Refined Products segment was $214.4 million compared with $177.3 million in the year-ago quarter.

Magellan Midstream’s Crude Oil unit generated $105.8 million of operating margin in the quarter compared to $96.9 million for the same period in 2016.

For the Marine Storage division, operating margin was $32.2 million, 11% higher than the $28.9 million earned in the year-ago period.

Magellan Midstream reported that its distributable cash flow for second-quarter 2017 came in at $250.4 million, up 13% from the year-ago quarter.

Stock Performance: Units of Magellan Midstream have lost 7.3% during the second quarter versus the 9.6% decline of the Zacks categorized Oil and Gas - Production Pipeline MLP industry.

Check back later for our full write up on this Magellan Midstream earnings report later!

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