MPLX’s Q1 Result Continues Steady & Slow Progress; Unitholder Capital Returns Are Better Than Most

MPLX’s first-quarter results were more of the same steady growth given its linkage to refineries. We see no reason to change our fair value estimate or narrow moat rating. Overall adjusted EBITDA increased about 3% to $1.4 billion from last year’s levels helped by higher terminal and gathering volumes. The capital return story for MPLX continues to be stronger than most U.S. peers, with over $850 million returned during the quarter, including $100 million of unit repurchases during the quarter. The partnership has $237 million left on its $1 billion buyback program, and at this rate, it could be expanded later this year.