NYSE:MPLX

Stock Analysis Report

Executive Summary

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

Snowflake


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


Market Performance


7 Day Return

1.2%

MPLX

2.8%

US Oil and Gas

0.4%

US Market


1 Year Return

-17.9%

MPLX

-13.7%

US Oil and Gas

11.4%

US Market

Return vs Industry: MPLX underperformed the US Oil and Gas industry which returned -13.7% over the past year.

Return vs Market: MPLX underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

MPLXIndustryMarket
7 Day1.2%2.8%0.4%
30 Day-9.6%-3.1%0.3%
90 Day-10.3%-5.6%-1.2%
1 Year-11.0%-17.9%-10.5%-13.7%13.9%11.4%
3 Year-1.0%-19.6%-5.0%-13.7%47.2%37.6%
5 Year-44.0%-58.2%-22.5%-33.6%62.4%44.6%

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?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPLX ($27.08) is trading below our estimate of fair value ($45.91)

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 (11.6x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: MPLX is good value based on its PE Ratio (11.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: MPLX is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: MPLX is overvalued based on its PB Ratio (3.2x) compared to the US Oil and Gas industry average (0.9x).

Future Growth

How is MPLX forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPLX's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: MPLX's earnings (10% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: MPLX's revenue (8.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MPLX's revenue (8.3% 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 (38.7%)

Past Performance

How has MPLX performed over the past 5 years?

66.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MPLX's earnings have grown significantly by 66.8% per year over the past 5 years.

Accelerating Growth: MPLX's earnings growth over the past year (71.5%) exceeds its 5-year average (66.8% per year).

Earnings vs Industry: MPLX earnings growth over the past year (71.5%) exceeded the Oil and Gas industry 19%.


Return on Equity

High ROE: Whilst MPLX's Return on Equity (24.79%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: MPLX has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: MPLX has significantly improved its Return on Capital Employed over the past 3 years.

Financial Health

How is MPLX's financial position?


Financial Position Analysis

Short Term Liabilities: MPLX's short term assets ($786.0M) do not cover its short term liabilities ($1.0B)

Long Term Liabilities: MPLX's short term assets (786.0M) do not cover its long term liabilities (14.8B)


Debt to Equity History and Analysis

Debt Level: MPLX's debt to equity ratio (178.2%) is considered high

Reducing Debt: MPLX's debt to equity ratio has increased from 30.8% to 178.2% over the past 5 years.

Debt Coverage: MPLX's debt is well covered by operating cash flow (21.3%).

Interest Coverage: MPLX's interest payments on its debt are well covered by EBIT (4x 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?

9.86%

Current Dividend Yield


Dividend Yield vs Market

company9.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Years10.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MPLX's dividend (9.86%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MPLX's dividend (9.86%) is in the top 25% of dividend payers in the US market (3.68%)

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 (112.1%), 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 (105.2% payout ratio).

Management

What is the CEO of MPLX's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Gary Heminger (66yo)

7.3yrs

Tenure

US$2,862,459

Compensation

Mr. Gary R. Heminger has been Chief Executive Officer and Director of Tesoro Logistics Logistics GP, LLC since October 1, 2018. Mr. Heminger is the Chief Executive Officer of MarkWest New Mexico L.L.C. He ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD2.86M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Management: MPLX's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

65yo

Average Age

Experienced Board: MPLX's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: MPLX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$513,25913 Aug 19
Garry Peiffer
EntityIndividual
Role
Member of the Board of Directors
Director of MPLX GP LLC
Shares18,800
Max PriceUS$27.30
BuyUS$1,158,07909 Aug 19
Gary Heminger
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO of MPLX GP LLC
Shares42,600
Max PriceUS$27.45
BuyUS$998,53409 Aug 19
Dan Sandman
EntityIndividual
Role
Lead Director
Lead Director of MPLX GP LLC
Shares36,630
Max PriceUS$27.26
BuyUS$488,64609 Aug 19
Garry Peiffer
EntityIndividual
Role
Member of the Board of Directors
Director of MPLX GP LLC
Shares18,000
Max PriceUS$27.15

Ownership Breakdown


Management Team

  • Pam Beall (63yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$2.19m
  • Gary Heminger (66yo)

    Chairman of the Board & CEO of MPLX GP LLC

    • Tenure: 7.3yrs
    • Compensation: US$2.86m
  • Greg Floerke (56yo)

    Executive Vice President of Gathering & Processing of MPLX GP LLC

    • Tenure: 3.8yrs
    • Compensation: US$2.00m
  • Mike Hennigan (60yo)

    President & Director of MPLX GP LLC

    • Tenure: 2.3yrs
    • Compensation: US$5.25m
  • John Swearingen (60yo)

    Executive Vice President of Logistics & Storage of MPLX GP LLC

    • Tenure: 3.8yrs
    • Compensation: US$1.62m
  • Shawn Lyon (51yo)

    Vice President of Operations of MPLX GP LLC

    • Tenure: 0.9yrs
  • Kristina Kazarian (36yo)

    Vice President of Investor Relations - MPLX GP LLC

    • Tenure: 1.8yrs
  • Ray Brooks (58yo)

    Senior Vice President of MPLX GP LLC

    • Tenure: 1.7yrs
  • Sue Gagle (53yo)

    General Counsel of MPLX GP LLC

    • Tenure: 2yrs
  • Molly Benson (52yo)

    VP, Chief Securities

    • Tenure: 3.6yrs

Board Members

  • Pam Beall (63yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$2.19m
  • Chris Helms (65yo)

    Director of MPLX GP LLC

    • Tenure: 7yrs
    • Compensation: US$190.00k
  • Dan Sandman (70yo)

    Lead Director of MPLX GP LLC

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Frank Semple (67yo)

    Director of MPLX GP LLC

    • Tenure: 3.8yrs
    • Compensation: US$190.63k
  • John Surma (65yo)

    Director of MPLX GP LLC

    • Tenure: 7yrs
    • Compensation: US$175.00k
  • Gary Heminger (66yo)

    Chairman of the Board & CEO of MPLX GP LLC

    • Tenure: 7.3yrs
    • Compensation: US$2.86m
  • Mike Hennigan (60yo)

    President & Director of MPLX GP LLC

    • Tenure: 2.3yrs
    • Compensation: US$5.25m
  • Garry Peiffer (68yo)

    Director of MPLX GP LLC

    • Tenure: 7.3yrs
    • Compensation: US$191.00k
  • Tim Griffith (50yo)

    Director of MPLX GP LLC

    • Tenure: 4.6yrs
    • Compensation: US$521.45k
  • Don Templin (56yo)

    Director of MPLX GP LLC

    • Tenure: 7.3yrs
    • Compensation: US$3.62m

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$29.125b
  • Market Cap: US$29.061b
  • Shares outstanding: 1.07b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.