- Adjusted EBITDA Growth Reached $7 billion in 2025, with a mid-single-digit CAGR over three years.
- Capital Returns Returned $4.4 billion to unitholders, including a 12.5% distribution increase.
- 2026 Capital Investment $2.4 billion allocated to natural gas/NGL projects, targeting mid-teens returns.
- Secretariat II Project 300 MMcf/d processing plant in Delaware Basin, expected to deliver mid-teens returns by 2028.
- Future Growth Outlook 2026 growth to exceed 2025, driven by new assets and higher throughput, with distribution growth targeting 12.5% annually.
Segment Performance
The natural gas and NGL services segment adjusted EBITDA decreased $10 million compared to 2024, primarily due to the divestiture of non-core gathering and processing assets and lower NGL prices. However, after considering the $23 million impact of divesting non-core assets, the segment grew 2.1% year-over-year. In contrast, the Crude Oil and Products and Logistics segment adjusted EBITDA increased $52 million, driven by a revised FERC tariff and higher rates.
Growth Projects and Capital Deployment
MPLX plans to invest $2.4 billion in capital projects in 2026, primarily in the natural gas and NGL services segment, which is expected to drive long-term structural growth. The company expects mid-teens returns on these investments, which are concentrated in the Permian and Marcellus basins. New projects, such as Secretariat II, a 300 million cubic feet per day processing plant in the Delaware Basin, are expected to deliver mid-teens returns and come online in 2028.
Outlook and Valuation
MPLX expects growth in 2026 to exceed 2025, driven by increased throughput on existing assets and new assets being placed into service. The company's confidence in mid-teens return targets for the project backlog is based on strict capital discipline and a focus on delivering mid-single-digit growth. With a Dividend Yield of 7.14% and a Free Cash Flow Yield of 10.49%, MPLX presents an attractive investment opportunity. The company's ROIC of 222.48% and ROE of 34.79% indicate strong profitability.
Capital Allocation and Risk Management
MPLX prioritizes maintenance capital, distribution growth, growth capital, and unit buybacks. The company targets a distribution coverage of at least 1.3 times and a leverage ratio of around 4 times. Regarding recent consolidation in the upstream community, MPLX does not see immediate risk to its contracts, demonstrating a robust risk management strategy.