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MPLX LP Partnership Units MPLX

Morningstar Rating
$39.37 +0.03 (0.08%)
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Company Report

MPLX Continues to Deliver Consistent Growth in a Volatile Environment

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 $6.5 billion in expected 2024 EBITDA compared with just over $550 million in 2015. Already, it has sliced billions in spending from the portfolio as 2024 growth capital spending is just $950 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.

Price vs Fair Value

MPLX is trading at a 2% discount.
Price
$39.37
Fair Value
$76.00
Uncertainty
Medium
1-Star Price
$97.00
5-Star Price
$98.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Many of MPLX's pipelines are essentially built solely to serve Marathon Petroleum assets, locking in fees.

Bears

The partnership has exposure to DAPL via its 9% indirect ownership stake and ownership of the Tesoro High Plains pipeline system. If both assets are shut down, the expected EBITDA impact is about $170 million.

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News

Trading Information

Previous Close Price
$39.34
Day Range
$39.2639.59
52-Week Range
$33.0339.95
Bid/Ask
$39.25 / $39.45
Market Cap
$39.42 Bil
Volume/Avg
3.8 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
10.89
Price/Sales
3.66
Dividend Yield (Trailing)
8.25%
Dividend Yield (Forward)
8.64%
Total Yield
8.26%

Company Profile

MPLX is a partnership that owns both pipelines and gathering and processing assets with extensive holdings in the Appalachian region. The asset base is made up of pipeline assets dropped down from Marathon Petroleum, its sponsor, and gathering and processing assets from MarkWest, which it acquired in 2015. MPLX also acquired Andeavor Logistics in July 2019.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
5,811

Competitors

Valuation

Metric
MPLX
EPD
ET
Price/Earnings (Normalized)
10.8910.7211.04
Price/Book Value
3.332.141.57
Price/Sales
3.661.180.57
Price/Cash Flow
7.087.324.53
Price/Earnings
MPLX
EPD
ET

Financial Strength

Metric
MPLX
EPD
ET
Quick Ratio
1.810.570.83
Current Ratio
1.960.921.10
Interest Coverage
5.115.433.17
Quick Ratio
MPLX
EPD
ET

Profitability

Metric
MPLX
EPD
ET
Return on Assets (Normalized)
10.20%8.22%5.62%
Return on Equity (Normalized)
75.89%20.96%21.72%
Return on Invested Capital (Normalized)
13.27%12.04%9.25%
Return on Assets
MPLX
EPD
ET
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Economic Moat
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ET
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OKE
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TRP
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KMI
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CQP
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