NYSE:MMP

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Magellan Midstream Partners

Executive Summary

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. More Details


Snowflake Analysis

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Magellan Midstream Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MMP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MMP's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

MMP

8.6%

US Oil and Gas

2.1%

US Market


1 Year Return

-26.7%

MMP

-31.2%

US Oil and Gas

19.8%

US Market

Return vs Industry: MMP exceeded the US Oil and Gas industry which returned -31.1% over the past year.

Return vs Market: MMP underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

MMPIndustryMarket
7 Day3.0%8.6%2.1%
30 Day20.8%29.6%8.1%
90 Day10.4%8.3%6.0%
1 Year-19.4%-26.7%-26.5%-31.2%22.5%19.8%
3 Year-19.8%-35.4%-32.8%-42.0%46.5%36.8%
5 Year-1.7%-28.1%-21.8%-37.3%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Magellan Midstream Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magellan Midstream Partners undervalued compared to its fair value and its price relative to the market?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMP ($43.26) is trading below our estimate of fair value ($51.83)

Significantly Below Fair Value: MMP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MMP is poor value based on its PE Ratio (10.7x) compared to the US Oil and Gas industry average (9.3x).

PE vs Market: MMP is good value based on its PE Ratio (10.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: MMP is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MMP is overvalued based on its PB Ratio (4.1x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Magellan Midstream Partners forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMP's forecast earnings growth (4.5% per year) is above the savings rate (2.2%).

Earnings vs Market: MMP's earnings (4.5% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: MMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: MMP's revenue (0.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: MMP's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MMP's Return on Equity is forecast to be very high in 3 years time (41.4%).


Next Steps

Past Performance

How has Magellan Midstream Partners performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMP has high quality earnings.

Growing Profit Margin: MMP's current net profit margins (35.6%) are lower than last year (36.8%).


Past Earnings Growth Analysis

Earnings Trend: MMP's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: MMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MMP had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-29.6%).


Return on Equity

High ROE: Whilst MMP's Return on Equity (38.5%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Magellan Midstream Partners's financial position?


Financial Position Analysis

Short Term Liabilities: MMP's short term assets ($341.2M) do not cover its short term liabilities ($531.6M).

Long Term Liabilities: MMP's short term assets ($341.2M) do not cover its long term liabilities ($5.2B).


Debt to Equity History and Analysis

Debt Level: MMP's debt to equity ratio (205.2%) is considered high.

Reducing Debt: MMP's debt to equity ratio has increased from 171.9% to 205.2% over the past 5 years.

Debt Coverage: MMP's debt is well covered by operating cash flow (25.3%).

Interest Coverage: MMP's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Magellan Midstream Partners's current dividend yield, its reliability and sustainability?

9.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MMP's dividend (9.5%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: MMP's dividend (9.5%) is in the top 25% of dividend payers in the US market (4.05%)


Stability and Growth of Payments

Stable Dividend: MMP's dividends per share have been stable in the past 10 years.

Growing Dividend: MMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.3%), MMP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MMP's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Mike Mears (57 yo)

9.75yrs

Tenure

US$7,210,215

Compensation

Mr. Michael N. Mears, also known as Mike, serves as the Director of Sempra Energy since October 11, 2018. He is the Chief Executive Officer, President and Chairman of Magellan GP, LLC, General Partner of M...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.21M) is below average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Mears
Chairman9.75yrsUS$7.21m0.085%
$ 8.2m
Jeffrey Holman
Senior VP1.5yrsUS$1.84m0.011%
$ 1.1m
Aaron Milford
Chief Operating Officer of Magellan GP1.5yrsUS$3.12m0.017%
$ 1.7m
Lisa Korner
Senior Vice President of Human Resources & Administration - Magellan GP LLC13.83yrsUS$2.13m0.039%
$ 3.7m
Douglas May
Senior VP9.75yrsUS$2.02m0.020%
$ 1.9m
Jeff Selvidge
Senior Vice President of Commercial for Refined Products - Magellan GP LLC13.83yrsUS$1.90m0.0097%
$ 942.6k
Robert Barnes
Senior Vice President of Commercial for Crude Oil - Magellan GP LLC6.83yrsUS$1.89m0.029%
$ 2.8m
Michael Pearson
Senior Vice President of Technical Services - Magellan GP LLC1.17yrsno data0.029%
$ 2.8m
Paula Farrell
Associate Vice President of Investor Relationsno datano datano data
Michael Aaronson
Senior Vice President of Business Development - Magellan GP LLC4.58yrsno data0.0089%
$ 857.4k
Melanie Little
Senior Vice President of Operations & EHS&S- Magellan GP3.33yrsno data0.013%
$ 1.3m
Suzanne Costin
Secretary of Magellan GP LLCno datano datano data

5.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: MMP's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Mears
Chairman9.75yrsUS$7.21m0.085%
$ 8.2m
Barry Pearl
Independent Presiding Director of Magellan GPno dataUS$249.50k0.0088%
$ 853.5k
Robert Croyle
Independent Director of Magellan GP11.17yrsUS$240.00k0.0017%
$ 162.6k
Walter Arnheim
Independent Director of Magellan GP11.17yrsUS$246.50k0.0023%
$ 225.5k
James Montague
Independent Director of Magellan GP17yrsUS$240.00k0.0098%
$ 949.3k
Chansoo Joung
Independent Director of Magellan GP1.5yrsUS$133.42k0.018%
$ 1.7m
Lori Gobillot
Independent Director of Magellan GP4.42yrsUS$222.00k0.00095%
$ 91.9k
Stacy Methvin
Independent Director of Magellan GP5.58yrsUS$226.50k0.0026%
$ 254.5k
Edward Guay
Independent Director of Magellan GP4.42yrsUS$226.50k0.00089%
$ 86.1k

7.7yrs

Average Tenure

63yo

Average Age

Experienced Board: MMP's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MMP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Midstream Partners, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Midstream Partners, L.P.
  • Ticker: MMP
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$9.677b
  • Shares outstanding: 223.70m
  • Website: https://www.magellanlp.com

Number of Employees


Location

  • Magellan Midstream Partners, L.P.
  • One Williams Center
  • P.O. Box 22186
  • Tulsa
  • Oklahoma
  • 74121-2186
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMPNYSE (New York Stock Exchange)YesLimited Partnership UnitsUSUSDFeb 2001
WEPDB (Deutsche Boerse AG)YesLimited Partnership UnitsDEEURFeb 2001

Biography

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products, C...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:29
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.