Assessing MPLX’s Valuation Following Strategic Joint Venture With MARA Holdings and Expansion Into Power Infrastructure

MPLX (MPLX) just revealed a joint venture with MARA Holdings focused on integrated power generation and supporting on-site compute infrastructure. This move highlights MPLX's broader strategy toward diversification and future-oriented energy solutions.

See our latest analysis for MPLX.

MPLX's share price momentum has picked up this year, with a 7.2% return over the past month and an 11.1% gain year-to-date. This reflects renewed optimism after the latest joint venture and project milestones. Adding in a 19% total shareholder return for the past year and a remarkable 306% total return over five years, MPLX’s long-run track record stands out. This signals both resilience and growth potential as market interest builds.

If MPLX’s latest strategic move grabbed your attention, this could be the perfect moment to broaden your investing horizons and discover fast growing stocks with high insider ownership

But with steady returns and new analyst price targets implying only moderate upside from current levels, the key question remains: is MPLX undervalued right now, or is the market already anticipating the growth ahead?

Most Popular Narrative: 5.2% Undervalued

The prevailing narrative points to a fair value of $57 per unit, slightly above MPLX's recent close at $54.06. Analysts appear confident but see limited short-term upside. This valuation is closely tied to their major growth catalysts.

Large-scale expansions in sour gas treating, NGL fractionation, and Permian processing capacity—targeting rising natural gas and NGL production and export demand—leverage global growth in energy consumption (particularly in emerging markets), as well as the continued critical role of fossil fuels in electricity generation. These factors position MPLX to benefit from stable or growing revenues and EBITDA through at least the late 2020s.

Read the complete narrative.

Here's what you won't see in the headlines: ambitious growth hinges on bold revenue and margin forecasts, with profits set to climb and a premium multiple factored in. What numbers give analysts this conviction? The untold story behind these projections reveals what could really power MPLX's future valuation.

Result: Fair Value of $57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ambitious Permian investments and short contract durations could expose MPLX to market volatility or unforeseen contract risks. This could potentially challenge analyst optimism.

Find out about the key risks to this MPLX narrative.

Build Your Own MPLX Narrative

If you think the story might be different or want to see the numbers for yourself, you can easily craft your own narrative in just a few minutes with Do it your way.

A great starting point for your MPLX research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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