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Equitrans Midstream Corp (NYSE:) delivered strong Q3 2023 results, with a net income of $129.7 million and adjusted EBITDA of $249.9 million. The company’s earnings per diluted share stood at $0.26, and adjusted earnings were reported at $0.28 per diluted share. Equitrans also returned a net income of $112.8 million and an adjusted net income of $122.8 million to its shareholders, showcasing its strong profitability and earnings generation capacity.
The operational success was marked by a 12% increase in transmission pipeline throughput from the previous year. The company anticipates mid-single digit annual volume growth leveraging integrated gathering and transmission assets, direct connections to MVP, high-quality resource base, and available asset capacity. A quarterly cash dividend of $0.15 per common share was declared for Q3 2023.
In leadership changes, Diana M. Charletta is set to succeed Thomas F. Karam as CEO on January 1, 2024, with Karam assuming the role of executive chairman.
MPLX LP (NYSE:NYSE:) reported Q3 2023 net income falling to $918 million from Q3 2022’s $1,428 million due to a non-cash gain from a contract reclassification. However, adjusted EBITDA rose to $1,596 million with contributions from Logistics and Storage ($1,091 million) and Gathering and Processing ($505 million). MPLX generated $1,244 million net cash from operations and a distributable cash flow of $1,373 million. The company returned $799 million to unitholders with a 10% increased quarterly distribution to $0.85 per unit and reported an adjusted free cash flow of $1,004 million. The distribution coverage ratio was 1.6x and the leverage ratio was 3.4x.
MPLX is expanding pipelines in the Permian and Bakken basins with growth from equity affiliates amid higher rates, higher total throughputs, and lower liquids prices. It has grown distributable cash flow by over 6%, has a $1.5 billion intercompany loan agreement with Marathon Petroleum Corp (NYSE:)., $960 million in cash, a $2 billion bank revolving credit facility, and stable cash flows.
Meanwhile, Leidos Holdings Inc (NYSE:NYSE:) reported a 9% rise in revenues year-over-year to $3.9 billion in Q3 2023. However, due to pre-tax, non-cash impairment and restructuring charges of $699 million related to the Security Enterprise Solutions (SES) reporting unit, the company suffered a net loss of $396 million or $2.91 per diluted share.
Adjusted EBITDA rose by 21% year-over-year to reach $451 million with an 11.5% margin, while Non-GAAP Diluted Earnings per Share saw a 28% increase to reach $2.03. The company generated substantial cash from operating activities ($795 million), but also recorded expenditures in investing ($52 million) and financing activities ($249 million) in Q3 2023.
Lastly, EnPro Industries Inc (NYSE:NPO) experienced a slowdown in Q3 2023 due to industry-wide challenges in the semiconductor sector, causing a 10.5% drop in sales to $250.7 million and a 19.1% decrease in adjusted EBITDA to $57.7 million. Despite these challenges, the company managed to maintain healthy margins through its balanced portfolio and resilient business model.
InvestingPro Insights
In light of the recent performance of Equitrans Midstream Corp (NYSE:ETRN), InvestingPro provides some key insights. The company’s accelerating revenue growth is notable, with a recent increase of 9.71% in the last twelve months as of Q2 2023. This is backed by impressive gross profit margins, standing at 87.13% in the same period, which underscores the company’s strong profitability.
InvestingPro Tips highlight the significant dividend ETRN pays to its shareholders, with a recent dividend yield of 6.83%. Despite some volatility in the stock price, ETRN has seen a large price uptick over the last six months, with a 78.49% total return, indicating potential for further growth.
As for the company’s valuation, it’s trading at a high revenue valuation multiple and a high Price / Book multiple of 4.08 as of Q2 2023. While the company was not profitable over the last twelve months, analysts predict profitability this year, offering an optimistic outlook for potential investors.
These insights, and over 100 more tips, are part of InvestingPro’s comprehensive financial analysis toolkit, designed to empower investors with the most relevant data for their investment decisions.
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