Magellan Midstream Partners, L.P. (MMP, $47.62, Buy; Target $54.00) (https://stifel2.bluematrix.com/sellside ... ource=mail)
- MMP: Focus Remains on Small Accretive Projects & Buybacks - Selman Akyol - MMP posted 2Q21 results in line with our expectations, while maintaining its FY21 DCF guidance of $1.07 billion. MMP continues to anticipate spending $75 million in 2021 and $15 million in 2022 to complete the partnership's current backlog of projects. Management reiterated its $15 million slated for 2022 capex is for completion costs associated with projects that have received FID and/or under construction. Magellan anticipates there will be incremental approved projects for FY22. Additionally, repurchasing units also remains a key focus for Magellan, though was hesitant to commit to a pace. We believe buybacks will play a prominent role in 2H21 and 2022. We continue to favor the MMP story given its financial discipline, conservative balance sheet, flexibility of divestiture proceeds and the normalization of product demand. We remain Buy rated with our $54.00 TP.