NYSE:MPLX

Stock Analysis Report

Executive Summary

MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has MPLX's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MPLX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.8%

MPLX

5.9%

US Oil and Gas

7.2%

US Market


1 Year Return

-69.9%

MPLX

-56.4%

US Oil and Gas

-10.4%

US Market

Return vs Industry: MPLX underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: MPLX underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

MPLXIndustryMarket
7 Day-5.8%5.9%7.2%
30 Day-50.4%-35.6%-12.6%
90 Day-60.5%-51.6%-19.4%
1 Year-66.8%-69.9%-54.6%-56.4%-8.5%-10.4%
3 Year-65.9%-73.0%-51.8%-56.5%15.8%8.3%
5 Year-80.7%-86.2%-55.3%-62.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is MPLX's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MPLX undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPLX ($10.85) is trading below our estimate of fair value ($30.91)

Significantly Below Fair Value: MPLX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MPLX is poor value based on its PE Ratio (10.8x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: MPLX is good value based on its PE Ratio (10.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: MPLX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MPLX is overvalued based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.5x).

Future Growth

How is MPLX forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPLX's forecast earnings growth (18% per year) is above the savings rate (1.7%).

Earnings vs Market: MPLX's earnings (18% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: MPLX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MPLX's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: MPLX's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPLX's Return on Equity is forecast to be low in 3 years time (14.1%).

Past Performance

How has MPLX performed over the past 5 years?

60.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPLX has a large one-off loss of $1.2B impacting its December 31 2019 financial results.

Growing Profit Margin: MPLX's current net profit margins (10.4%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: MPLX's earnings have grown significantly by 60.2% per year over the past 5 years.

Accelerating Growth: MPLX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MPLX had negative earnings growth (-47.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.4%).


Return on Equity

High ROE: MPLX's Return on Equity (8.3%) is considered low.

Financial Health

How is MPLX's financial position?


Financial Position Analysis

Short Term Liabilities: MPLX's short term assets ($1.5B) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: MPLX's short term assets ($1.5B) do not cover its long term liabilities ($20.7B).


Debt to Equity History and Analysis

Debt Level: MPLX's debt to equity ratio (112%) is considered high.

Reducing Debt: MPLX's debt to equity ratio has reduced from 137.2% to 112% over the past 5 years.

Debt Coverage: MPLX's debt is well covered by operating cash flow (20.7%).

Interest Coverage: MPLX's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: MPLX has a high level of physical assets or inventory.

Debt Coverage by Assets: MPLX's debt is not covered by short term assets (assets are 0.1x debt).

Dividend

What is MPLX's current dividend yield, its reliability and sustainability?

27.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPLX's dividend (25.35%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: MPLX's dividend (25.35%) is in the top 25% of dividend payers in the US market (5.49%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (267.8%), 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 (128.4% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Mike Hennigan (60yo)

0.25

Tenure

US$7,656,867

Compensation

Mr. Michael J. Hennigan, also known as Mike, has been President and Chief Executive Officer at Marathon Petroleum Corporation since March 18, 2020. Mr. Hennigan serves as Chief Executive Officer at MPLX GP ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hennigan
CEO, President & Director of MPLX GP LLC0.25yrUS$7.66m0.015% $1.7m
Pamela K. Beall
Executive VP6.17yrsUS$2.70m0.0040% $459.4k
Suzanne Gagle
General Counsel of MPLX GP LLC2.42yrsUS$2.74m0.0029% $328.4k
John Swearingen
Executive Vice President of Logistics & Storage - MPLX GP LLC4.25yrsUS$2.80m0.0025% $290.5k
Gregory Floerke
Executive Vice President of Gathering & Processing - MPLX GP LLC4.25yrsUS$2.54m0.0079% $911.8k
Shawn Lyon
Vice President of Operations - MPLX GP LLC1.25yrsno datano data
Kristina Kazarian
Vice President of Investor Relations - MPLX GP LLC2.17yrsno datano data
Molly Benson
VP, Chief Securities4yrsno datano data
Raymond Brooks
Senior Vice President of MPLX GP LLC2yrsno datano data
Phillip Anderson
Senior Vice President of Business Development of MPLX GP LLC1.42yrsno datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: MPLX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hennigan
CEO, President & Director of MPLX GP LLC0.25yrUS$7.66m0.015% $1.7m
Pamela K. Beall
Executive VP6.17yrsUS$2.70m0.0040% $459.4k
Christopher Helms
Independent Director of MPLX GP LLC7.42yrsUS$260.00k0.0030% $345.7k
Dan Sandman
Lead Director of MPLX GP LLCno dataUS$270.00k0.0096% $1.1m
Frank Semple
Independent Director of MPLX GP LLC4.25yrsUS$287.50k0.054% $6.3m
John Surma
Independent Director of MPLX GP LLC7.42yrsUS$200.00k0.0030% $349.1k
Gary Heminger
Chairman of MPLX GP LLC0.25yrUS$3.60m0.028% $3.3m
Michael Beatty
Independent Director of MPLX GP LLC4.25yrsUS$255.00k0.0040% $453.6k
Garry Peiffer
Independent Director of MPLX GP LLC7.67yrsUS$217.50k0.0081% $934.8k
Donald Templin
Director of MPLX GP LLC7.67yrsUS$3.62m0.011% $1.2m

6.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MPLX's board of directors are considered experienced (6.2 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.1%.


Top Shareholders

Company Information

MPLX LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MPLX LP
  • Ticker: MPLX
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$11.484b
  • Market Cap: US$10.648b
  • Shares outstanding: 1.06b
  • Website: https://www.mplx.com

Location

  • MPLX LP
  • 200 East Hardin Street
  • Findlay
  • Ohio
  • 45840
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPLXNYSE (New York Stock Exchange)YesCommon UnitsUSUSDOct 2012
M0XDB (Deutsche Boerse AG)YesCommon UnitsDEEUROct 2012
0S2ULSE (London Stock Exchange)YesCommon UnitsGBUSDOct 2012

Biography

MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States. The company also provides fuels distribution services. 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, storage, and marketing of natural gas liquids; and transportation, storage, and distribution of crude oil and refined petroleum products. MPLX LP also engages in the inland marine business, which transports light products, heavy oils, crude oil, renewable fuels, chemicals, and feedstocks in the Midwest and Gulf Coast regions through inland marine vessels. The company’s assets include approximately 8,000 miles of crude oil and refined product pipelines across 17 states; terminal facilities for refined petroleum products with a combined total shell capacity of approximately 23.7 million barrels primarily located in the Midwest, Gulf Coast, and Southeast regions; tank farm assets with a storage capacity of approximately 56 million barrels; and 48 rail and truck racks, 21 docks, and gasoline blenders. Its storage caverns consist of butane, propane, and liquefied petroleum gas storage with a combined capacity of 4,175 million barrels located in Neal, West Virginia; Woodhaven, Michigan; and Robinson, Illinois. The company's marine business owns and operates 23 boats, 256 barges, and third-party chartered equipment, as well as a marine repair facility located on the Ohio River. MPLX GP LLC acts as the general partner of MPLX LP. MPLX LP was founded in 2012 and is based in Findlay, Ohio. MPLX LP operates as a subsidiary of MPLX GP LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:12
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.