MPLX Continues to Expand Its Permian Position

We like MPLX's portfolio of refining and Appalachia-based gathering and processing assets, given the propensity for fee-for-capacity and minimum volume commitment contracts, which present a highly secure stream of income over the long run. Further, MPLX still has plenty of opportunities to unlock in its newly enlarged portfolio of assets following drop-downs from its parent and the Andeavor Logistics deal, which has taken the partnership to $6.1 billion in expected 2023 EBITDA compared with just over $550 million in 2015. Already, it has sliced billions in spending from the portfolio as 2023 growth capital spending is just $800 million from the $2.6 billion initially announced at the time of the merger, demonstrating commendable focus on unitholder returns.The management team has prioritized unit buybacks, as buybacks between 2020 and 2022 total over $1 billion, but has shifted to boosting the distribution in 2023.