Download PDF

1. Company Snapshot

1.a. Company Description

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; gathering, storage, transportation, and distribution of crude oil and refined products, as well as other hydrocarbon-based products; and sale of residue gas and condensate.


It also engages in the inland marine businesses comprising transportation of light products, heavy oils, crude oil, renewable fuels, chemicals, and feedstocks in the Mid-Continent and Gulf Coast regions, as well as owns and operates boats and barges, including third-party chartered equipment, and a marine repair facility located on the Ohio River; and distribution of fuel, as well as operates refining logistics, terminals, rail facilities, and storage caverns.In addition, the company operates terminal facilities for the receipt, storage, blending, additization, handling, and redelivery of refined petroleum products located through the pipeline, rail, marine, and over-the-road modes of transportation.MPLX GP LLC acts as the general partner of MPLX LP.


The company was incorporated in 2012 and is headquartered in Findlay, Ohio.MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.

Show Full description

1.b. Last Insights on MPLX

MPLX LP's recent performance was driven by strong Q3 2025 financial results, including a 12.5% increase in quarterly distribution to $4.31 per unit annualized. The company's adjusted EBITDA attributable to MPLX was $1.8 billion, reflecting execution of strategic priorities. Recent acquisitions, such as the Delaware basin sour gas treating business, and new opportunities, like supporting data centers in Texas, are expected to drive growth. With a sustainable leverage ratio, MPLX LP offers a high-yielding dividend with room for growth, making it an attractive option for income investors.

1.c. Company Highlights

2. MPLX's Q3 2025 Earnings: A Strong Performance with Growth Momentum

MPLX reported a robust financial performance in the third quarter of 2025, with adjusted EBITDA of $1.8 billion and distributable cash flows of $1.5 billion. The company's actual EPS came out at $1.52, surpassing analyst estimates of $1.07. The strong financial performance was driven by a 3% year-over-year increase in gathered volumes and processing volumes, primarily due to production growth in the Utica and Marcellus. The company's revenue growth is expected to be 6.2% next year, according to analyst estimates.

Publication Date: Nov -05

📋 Highlights
  • Capital Return: $1.1B returned to unitholders via distributions, with a 12.5% quarterly increase for the second consecutive year.
  • Adjusted EBITDA Growth: Q3 2025 adjusted EBITDA of $1.8B and distributable cash flows of $1.5B, driven by mid-single-digit growth.
  • Strategic Acquisitions: Acquired 55% stake in BANGL NGL pipeline and a Delaware Basin sour gas treating business, enhancing Permian operations.
  • Expansion Projects: Secretariat processing plant (online 2025), Gulf Coast fractionation/LPG terminal (2028), and Eiger Express pipeline (Permian to Gulf Coast).
  • Balance Sheet Strength: Leverage below 4x target, with mid-teens ROI and mid-single-digit EBITDA growth outlook, supporting annualized base distribution growth >50% over four years.

Segmental Performance

The Natural Gas and NGL Services segment saw adjusted EBITDA increase by $9 million compared to the third quarter of 2024, driven by contributions from recently acquired assets and higher volumes. The Crude Oil and Products Logistics segment also reported an increase in adjusted EBITDA of $43 million, driven by higher rates partially offset by higher operating expenses. The strong performance across segments was a key factor in MPLX's ability to return nearly $1 billion to unitholders in distributions and $100 million in unit repurchases during the quarter.

Growth Opportunities and Capital Returns

MPLX is advancing its strategic growth objectives, particularly in the Permian, with its seventh processing plant, Secretariat, expected to be online by the end of 2025. The company is also constructing a Gulf Coast fractionation facility and LPG export terminal, with the first frac export terminal and purity pipeline expected to enter service in 2028. The company's commitment to returning capital to unitholders is evident in the 12.5% increase in quarterly distribution, marking the fourth consecutive year of double-digit increases. With a solid balance sheet and leverage below its comfort level of 4x, MPLX is well-positioned to continue delivering mid-teens returns on investments and mid-single-digit adjusted EBITDA growth.

Valuation and Outlook

Based on the current valuation metrics, MPLX's P/E Ratio is 10.83, and the Dividend Yield is 7.47%. The company's ROIC is 14.03%, and ROE is 34.44%, indicating a strong return on capital. With a Net Debt / EBITDA ratio of 3.5, MPLX's balance sheet remains solid. As the company is expected to deliver stronger growth in 2026, driven by the ramp-up of new assets and acquisitions, the current valuation appears to be reasonable. The market is likely pricing in the company's growth prospects, but the current valuation metrics suggest that there is still potential for upside.

3. NewsRoom

Card image cap

How Good Has MPLX Stock Actually Been?

Dec -03

Source: fool.com

Card image cap

68 Graham Value All-Star (GVAS) November Dividend Dogs Show 27 'Safer' And 17 Ideal Buys

Dec -02

Source: seekingalpha.com

Card image cap

The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

Card image cap

Here Are Monday’s Top Wall Street Analyst Research Calls: Archer Aviation, Beta Technologies, Carvana, Chevron, MPLX, Toast, Zscaler and More

Dec -01

Source: 247wallst.com

Card image cap

This Energy Stock Pays an 8% Dividend (And It's Safe)

Nov -24

Source: fool.com

Card image cap

Creative Planning Has $2.73 Million Stock Position in Mplx Lp $MPLX

Nov -24

Source: defenseworld.net

Card image cap

This 8% Yield Is Set To Grow By 12%: MPLX

Nov -17

Source: seekingalpha.com

Card image cap

My Most Contrarian Call Yet: Energy Is About To Rewrite Wall Street's Playbook

Nov -17

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Crude Oil and Products Logistics

Expected Growth: 4.5%

The growth is slightly lower than the global average due to the gradual transition towards cleaner energy sources, potentially impacting the demand for crude oil and petroleum products logistics. However, the existing infrastructure and the ongoing need for these services will continue to drive revenue.

Natural Gas and NGL Services

Expected Growth: 5.5%

The expected growth is higher than the global average due to the increasing demand for natural gas as a cleaner energy source. The transition towards lower-carbon energy solutions and the growing need for NGLs in industrial applications will drive the revenue growth in this segment.

7. Detailed Products

Crude Oil Transportation

MPLX LP provides crude oil transportation services through its network of pipelines and terminals, connecting producers to refineries and other markets.

Refined Products Transportation

MPLX LP transports refined petroleum products, such as gasoline, diesel, and jet fuel, from refineries to distribution terminals and retail outlets.

Natural Gas Processing

MPLX LP processes natural gas, separating natural gas liquids (NGLs) and extracting valuable components such as ethane, propane, and butane.

NGL Fractionation

MPLX LP fractionates NGLs into their individual components, such as ethane, propane, and butane, for use in various industries.

Marine Transportation

MPLX LP provides marine transportation services, moving crude oil, refined products, and NGLs through its fleet of barges and towboats.

8. MPLX LP's Porter Forces

Forces Ranking

Threat Of Substitutes

MPLX LP operates in the midstream energy industry, which has relatively low substitutability due to the specialized nature of its operations. However, there is some threat from alternative modes of transportation, such as pipelines and railroads.

Bargaining Power Of Customers

MPLX LP's customers are primarily large oil and gas companies, which have limited bargaining power due to their dependence on MPLX's infrastructure and services.

Bargaining Power Of Suppliers

MPLX LP relies on a diverse range of suppliers for its operations, including energy companies, construction firms, and equipment providers. While suppliers have some bargaining power, MPLX's scale and diversification mitigate this risk.

Threat Of New Entrants

The midstream energy industry has significant barriers to entry, including high capital costs, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The midstream energy industry is highly competitive, with several large players competing for market share. MPLX LP faces intense rivalry from companies such as Enterprise Products Partners, Magellan Midstream Partners, and Plains All American Pipeline.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.53%
Debt Cost 4.50%
Equity Weight 39.47%
Equity Cost 10.59%
WACC 6.90%
Leverage 153.36%

11. Quality Control: MPLX LP passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cheniere Energy Partners

A-Score: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
MPLX

A-Score: 7.3/10

Value: 4.7

Growth: 5.3

Quality: 6.7

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

55.86$

Current Price

55.86$

Potential

-0.00%

Expected Cash-Flows