Morningstar

MPLX LP Partnership Units MPLX

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Stock XNYS Rating as of
$44.46 −0.43 (0.96%)
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As of Delayed Price Closed

Company Report

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MPLX Is One of the More Reliable US Midstream Partnerships

Brett Castelli

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.

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Price vs Fair Value

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MPLX is trading at a 547% premium.
Price
$44.46
Fair Value
$27.00
Uncertainty
Medium
1-Star Price
$34.60
5-Star Price
$65.40
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 Dakota Access 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

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Trading Information

Previous Close Price
$44.89
Day Range
$44.27–44.90
52-Week Range
$34.52–45.24
Bid/Ask
$43.96 / $44.46
Market Cap
$45.38 Bil
Volume/Avg
1.6 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
10.70
Price/Sales
4.20
Dividend Yield (Trailing)
7.65%
Dividend Yield (Forward)
7.65%
Total Yield
7.65%

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 2019.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
5,810
Website
https://www.mplx.com

Competitors

Valuation

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Metric
MPLX
ET
OKE
Price/Earnings (Normalized)
 10.7013.0618.45
Price/Book Value
 3.371.763.12
Price/Sales
 4.200.632.58
Price/Cash Flow
 8.214.9511.35
Price/Earnings
MPLX
ET
OKE

Financial Strength

Metric
MPLX
ET
OKE
Quick Ratio
 0.940.880.34
Current Ratio
 0.991.140.62
Interest Coverage
 5.703.404.02
Quick Ratio
MPLX
ET
OKE

Profitability

Metric
MPLX
ET
OKE
Return on Assets (Normalized)
 11.42%5.82%6.64%
Return on Equity (Normalized)
 41.57%22.54%18.27%
Return on Invested Capital (Normalized)
 14.45%9.54%10.14%
Return on Assets
MPLX
ET
OKE

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