Is Magellan Midstream Partners Stock a Buy-Worthy Investment?
August 14, 2023
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Magellan Midstream Partners ($NYSE:MMP) (MMP) is an energy infrastructure company that provides transportation and storage solutions for petroleum products including gasoline, diesel, jet fuel, and crude oil. It is one of the largest publicly traded partnerships in the US, and its stock has been steadily increasing in recent years. When it comes to investing in Magellan Midstream Partners stock, investors should weigh a few key factors before making a purchase. The first factor to consider is the current state of the energy industry. The company’s business is entirely dependent on the transportation and storage of products like gasoline and diesel, so any downturn in the industry could have an adverse effect on its stock price.
Additionally, investors should take into account Magellan Midstream Partners’ financials. The company has seen strong growth over the past few years, but investors should look at its financial statements to make sure that it is performing well. Overall, investors should carefully consider their purchase of Magellan Midstream Partners stock and analyze the company’s performance in the energy industry before making a purchase decision. While the company has seen steady growth and produced strong financials in recent years, investors should remain aware of the risks associated with investing in an energy-based company.
Share Price
Magellan Midstream Partners is a stock that opened on Monday at $64.0 and closed at the same price, down by 0.1% from its last closing price of $64.1. This makes it a very reliable stock in terms of price stability, as it has not seen a dramatic drop or spike. While the stock may not seem like a lucrative option for investors looking to make a quick buck, it could be worth investing in for those looking for a more stable long term investment. Its operations are diversified as it operates in various parts of the US, thus providing investors with a secure and reliable investment option. Overall, Magellan Midstream Partners stock could be a good option for those looking for a reliable and secure long-term investment. The company’s diversified portfolio of energy infrastructure assets provides investors with the assurance that their investment will be safe and secure, while at the same time, they can benefit from the returns on their investment.
Additionally, the stability of its stock price is also a huge plus point, making it an attractive buy for investors looking for a steady long-term investment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MMP. More…
| Total Revenues | Net Income | Net Margin |
| 3.48k | 1.03k | 29.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MMP. More…
| Operations | Investing | Financing |
| 1.5k | -181.4 | -1.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MMP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.63k | 5.91k | 8.48 |
Key Ratios Snapshot
Some of the financial key ratios for MMP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 4.3% | 36.1% |
| FCF Margin | ROE | ROA |
| 37.8% | 46.3% | 10.3% |
Analysis
At GoodWhale, we have conducted a thorough analysis of the fundamentals of MAGELLAN MIDSTREAM PARTNERS. After careful consideration, we have given them a low risk rating for both financial and business aspects. This rating, however, is not without risk warnings. We have detected one in their income sheet. If you’d like to know more, sign up on goodwhale.com and get full access to our extensive risk analysis. More…
Peers
It faces competition from other companies such as Enterprise Products Partners LP, Energy Transfer LP, and Enbridge Inc. Magellan has been able to stay ahead of the competition by offering a variety of services and products that meet the needs of their customers.
– Enterprise Products Partners LP ($NYSE:EPD)
Enterprise Products Partners LP is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Our services include: natural gas gathering, processing, transportation and storage; NGL transportation, fractionation, storage and import and export terminals; crude oil gathering, transportation, storage and terminals; refined products transportation and storage; and petrochemical transportation and storage. Headquartered in Houston, Texas, Enterprise Products Partners LP has operations in the United States, Canada, Mexico and the Netherlands.
– Energy Transfer LP ($NYSE:ET)
Energy Transfer LP (ET) is a publicly traded partnership that owns and operates energy infrastructure assets in the United States. ET’s business segments include natural gas pipelines, natural gas gathering and processing, crude oil pipelines and terminals, and liquefied natural gas (LNG) terminals.
ET’s natural gas pipeline segment includes interstate and intrastate natural gas pipelines and associated storage facilities. The segment also includes LNG facilities. ET’s natural gas gathering and processing segment includes natural gas gathering systems, natural gas processing plants, and fractionation facilities. The segment also includes NGL transportation and marketing activities. ET’s crude oil pipeline segment consists of interstate and intrastate crude oil pipelines and associated storage facilities. The segment also includes crude oil gathering and transportation activities.
ET’s market cap is $36.7 billion as of 2022. The company has a return on equity of 14.71%. ET is one of the largest energy infrastructure companies in the United States with a diversified portfolio of energy assets.
– Enbridge Inc ($TSX:ENB)
Enbridge Inc is a Canadian multinational energy transportation company. It has the longest crude oil and liquids pipeline system in North America and is one of the largest energy infrastructure companies in the world. The company’s pipelines transport crude oil, natural gas, and refined products. It also has a large natural gas gathering and processing business. The company’s market cap as of 2022 is 103.67B and its Return on Equity is 9.87%.
Summary
Magellan Midstream Partners (MMP) is a US based partnership with a focus on transporting, storing, and distributing refined petroleum products and ammonia. It operates through two segments: Pipeline Transportation and Terminals. Analysts expect the company to continue to show strong growth in earnings and dividends over the next few years. The company has consistently exhibited cost discipline and has a strong balance sheet.
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