No. of Recommendations: 2


This LP yields 6.98%, with strong 1.26x distribution coverage.

Management has raised the distribution for 19 straight quarters.

It just reported record revenues (up 17%), net income (up 53%), EBITDA (up 43%), and distributable cash flow (up 47%).

It goes ex-dividend this week - on 11/3/17.

Its 11% below analysts' lowest price target.

After slogging through many sub-par Q2 reports for midstream pipeline firms, it was refreshing to read a report of robust earnings from MPLX LP (MPLX). We've covered MPLX in several previous articles - this article will update that previous information.


MPLX is a growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation (MPC) to own, operate, develop, and acquire midstream energy infrastructure assets. MPLX provides services in the midstream sector across the hydrocarbon value chain through its Logistics and Storage and Gathering and Processing segments.

Logistics and Storage - This segment transports and stores crude oil, refined products, and other hydrocarbon-based products, primarily in the Midwest and Gulf Coast regions of the U.S. Assets consist of a network of crude oil and refined product pipeline systems, associated storage assets and an inland marine business.

MPLX owns, leases, operates or has interest in 3,500 miles of crude oil pipelines and 2,400 miles of light product pipelines. MPLX also has 59 owned and operated, one leased, and two partially owned light product terminals, butane and NGL storage caverns, an inland marine business, crude oil and product storage facilities (tank farms) and a barge dock facility.

MPLX’s marine transportation operations include 18 owned towboats as well as more than 200 owned and leased barges that transport refined products and crude oil on the Ohio, Mississippi and Illinois rivers and their tributaries and inter-coastal waterways.

Gathering and Processing - MPLX operates several natural gas gathering systems in six states. Its natural gas processing complexes remove the heavier and more valuable hydrocarbon components from natural gas. MPLX currently operates natural gas processing complexes in the Marcellus shale, Utica shale, Appalachia region, and Southwest region.

NGL fractionation facilities separate the mixture of extracted NGLs into individual purity product components for end-use sale.

The G&P assets include approximately 5.9 billion cubic feet per day of gathering capacity, 7.8 billion cubic feet per day of natural gas processing capacity and 570,000 barrels per day of fractionation capacity. (Source: MPLX site)

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