Company Reports

MPLX reported adjusted EBITDA of $1.775 billion, in line with PitchBook consensus of $1.750 billion. Management reiterated its growth outlook as major projects remain on schedule for the second half of the year.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well-to-water on the Gulf Coast. To achieve this, MPLX has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

MPLX posted EBITDA on the low end of PitchBook consensus, $1.73 billion versus $1.76 billion. One-time customer payments, weak volumes, and higher costs in the natural gas segment all weighed down performance.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well-to-water on the Gulf Coast. To achieve this, MPLX has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

MPLX reported fourth-quarter EBITDA of 1.8 billion, in line with PitchBook consensus. Management also announced new projects within the natural gas segment.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well head to water on the Gulf Coast. To achieve this it has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well head to water on the Gulf Coast. To achieve this it has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

MPLX announced a letter of intent with Mara Holdings to supply natural gas to a proposed data center. This is part of a wider trend of data centers locating near the wellhead, seeking the lowest power prices.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well head to water on the Gulf Coast. To achieve this it has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

MPLX posted results largely in line with PitchBook consensus, with EBITDA of $1,690 million versus $1,699 million. While the results were in line with expectations, the focus of management was on the recently announced Northwind Midstream acquisition.

MPLX is focused on building out its natural gas gathering and processing operations, namely in the Permian. Crucial to the strategy is developing a full value chain for shippers, from well head to water on the Gulf Coast. To achieve this it has made several acquisitions and is developing a marine export terminal with Oneok through a joint venture. We agree with the strategy broadly, and the policy of projects being substantially contracted before proceeding with investment does much to secure returns.

We are increasing our fair value estimate for MPLX to $56 from $50 after taking a second look at the firm. This roughly corresponds to a 10.5 times enterprise value/2025 EBITDA multiple. We view shares as fairly valued.

MPLX reported first-quarter adjusted EBITDA of $1.8 billion, an increase of 7% year over year. This translated into distributable cash flow of $1.5 billion, an 8% year-on-year increase. The firm also announced three acquisitions since last quarter’s call, totaling $1.1 billion.

MPLX reported fourth-quarter EBITDA of $1.8 billion, up 9% year over year. This translated into distributable cashflow of $1.5 billion, a 7% year-on-year increase.

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. With the highly secure cash flows, management has taken a smart approach to capital allocation. It initially prioritized unit buybacks, as repurchases between 2020 and 2022 totaled over $1 billion, but shifted to boosting the distribution in 2023. 2024 saw a healthy distribution increase but also buybacks. We think there is potential for further distribution increases through 2025.

MPLX reported third-quarter adjusted EBITDA up 7% year on year, while distributable cash flow increased 5%. In addition, the company increased its distribution by 12.5%, an increase from 10% previously.

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. With the highly secure cash flows, management has taken a smart approach to capital allocation. It initially prioritized unit buybacks, as repurchases between 2020 and 2022 totaled over $1 billion, but shifted to boosting the distribution in 2023. 2024 seems so far like a mix, with a healthy distribution increase but also buybacks. We think there is potential for a special distribution in 2024, though, given excess cash flows.

MPLX’s second-quarter results met our expectations, and after updating our model, we see no reason to change our $44 fair value estimate or narrow moat rating. MPLX likely remains most attractive as a capital returns story, with $949 million in capital returned to unitholders during the quarter, made up of $75 million in buybacks and the rest as the quarterly distribution. EBITDA is up 8% year over year to $1.65 billion, primarily because of stronger gathering and processing volumes.

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. With the highly secure cash flows, management has taken a smart approach to capital allocation. It initially prioritized unit buybacks, as repurchases between 2020 and 2022 totaled over $1 billion, but shifted to boosting the distribution in 2023. 2024 seems so far like a mix, with a healthy distribution increase but also buybacks. We think there is potential for a special distribution in 2024, though, given excess cash flows.

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. With the highly secure cash flows, management has taken a smart approach to capital allocation. It initially prioritized unit buybacks, as repurchases between 2020 and 2022 totaled over $1 billion, but shifted to boosting the distribution in 2023. 2024 seems so far like a mix, with a healthy distribution increase but also buybacks.