MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$28.76|
|52 Week High||US$15.05|
|52 Week Low||US$31.40|
|1 Month Change||3.94%|
|3 Month Change||-2.14%|
|1 Year Change||78.86%|
|3 Year Change||-17.07%|
|5 Year Change||-15.06%|
|Change since IPO||5.73%|
Recent News & Updates
MPLX: All The Ingredients Needed For Higher Distributions
The midstream giant, MPLX has all the ingredients needed for higher distributions whilst already offering a high yield of almost 10%. The first being their resilient financial performance that provides strong distribution coverage with ample free cash flow to fund higher payments. The second and arguably most important being a clear managerial focus on returning capital to their unitholders with them now operating in a post-growth phase. These are further supported by the healthy financial position that will continue deleveraging at a fast pace. Following their resilient financial performance and these exciting prospects for even higher distributions, it should be no surprise that I believe a very bullish rating is appropriate.
MPLX: The 10% Yield Has Become Even More Attractive
MPLX keeps delivering robust results, growing its adjusted EBITDA and distributable cash flows. Dividend coverage is constantly improving. However, the stock is still trading with the highest yield amongst its peers. MPLX remains our top pick in the energy sector, offering a fantastic combination of a sky-high dividend yield, meaningful buybacks, and an attractive valuation.
MPLX LP: 9% Yield, Outperforming, High Options Yields
MPLX yields 9.6%, with good, steady 1.56X coverage in Q1 '21. MPLX’s valuations, profitability, and performance vs. its industry are detailed in this article. There are two high-yield options trades at the end of this article.
|MPLX||US Oil and Gas||US Market|
Return vs Industry: MPLX exceeded the US Oil and Gas industry which returned 72.6% over the past year.
Return vs Market: MPLX exceeded the US Market which returned 35.3% over the past year.
Stable Share Price: MPLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MPLX's weekly volatility (4%) has been stable over the past year.
About the Company
MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States. It operates in two segments, Logistics and Storage, and Gathering and Processing. The company is involved in the gathering, processing, and transportation of natural gas; gathering, transportation, fractionation, exchange, storage, and marketing of natural gas liquids; transportation, storage, distribution, and marketing of crude oil and refined petroleum products, as well as other hydrocarbon-based products; and sale of residue gas and condensate.
MPLX Fundamentals Summary
|MPLX fundamental statistics|
Is MPLX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MPLX income statement (TTM)|
|Cost of Revenue||US$3.56b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
|Earnings per share (EPS)||2.62|
|Net Profit Margin||29.98%|
How did MPLX perform over the long term?See historical performance and comparison
9.6%Current Dividend Yield
Is MPLX undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MPLX ($28.76) is trading below our estimate of fair value ($38.48)
Significantly Below Fair Value: MPLX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MPLX is good value based on its PE Ratio (11x) compared to the US Oil and Gas industry average (19x).
PE vs Market: MPLX is good value based on its PE Ratio (11x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: MPLX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MPLX is overvalued based on its PB Ratio (2.5x) compared to the US Oil and Gas industry average (1.9x).
How is MPLX forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MPLX's earnings are forecast to decline over the next 3 years (-4.8% per year).
Earnings vs Market: MPLX's earnings are forecast to decline over the next 3 years (-4.8% per year).
High Growth Earnings: MPLX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MPLX's revenue (1.6% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: MPLX's revenue (1.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MPLX's Return on Equity is forecast to be high in 3 years time (20.5%)
How has MPLX performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MPLX has high quality earnings.
Growing Profit Margin: MPLX became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MPLX has become profitable over the past 5 years, growing earnings by 3.7% per year.
Accelerating Growth: MPLX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MPLX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.4%).
Return on Equity
High ROE: Whilst MPLX's Return on Equity (20.61%) is high, this metric is skewed due to their high level of debt.
How is MPLX's financial position?
Financial Position Analysis
Short Term Liabilities: MPLX's short term assets ($1.3B) do not cover its short term liabilities ($1.7B).
Long Term Liabilities: MPLX's short term assets ($1.3B) do not cover its long term liabilities ($20.3B).
Debt to Equity History and Analysis
Debt Level: MPLX's debt to equity ratio (139.7%) is considered high.
Reducing Debt: MPLX's debt to equity ratio has increased from 41.8% to 139.7% over the past 5 years.
Debt Coverage: MPLX's debt is well covered by operating cash flow (25.5%).
Interest Coverage: MPLX's interest payments on its debt are well covered by EBIT (4.3x coverage).
What is MPLX current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MPLX's dividend (9.56%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: MPLX's dividend (9.56%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MPLX has been paying a dividend for less than 10 years.
Growing Dividend: MPLX's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (106.6%), MPLX's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MPLX's dividends in 3 years are not forecast to be well covered by earnings (100.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Hennigan (62 yo)
Mr. Michael J. Hennigan, also known as Mike, is Chairman of the Board of MPLX GP LLC, the General Partner of MPLX LP since April 29, 2020. Mr. Hennigan is Chief Executive Officer at MPLX GP LLC, the Genera...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD12.88M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: MPLX's management team is considered experienced (2.9 years average tenure).
Experienced Board: MPLX's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
MPLX LP's employee growth, exchange listings and data sources
- Name: MPLX LP
- Ticker: MPLX
- Exchange: NYSE
- Founded: 2012
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Implied Market Cap: US$29.401b
- Market Cap: US$29.401b
- Shares outstanding: 1.02b
- Website: https://www.mplx.com
- MPLX LP
- 200 East Hardin Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/25 22:14|
|End of Day Share Price||2021/09/24 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.