| Stock Ticker | Home Page | Asset Class | Sector | Industry | Investment Strategy | Dividend Frequency | Geographic Focus |
|---|---|---|---|---|---|---|---|
| MPLX | MPLX LP | Stock / Equity | Energy | Oil, Gas & Consumable Fuels | Income | Quarterly | United States |
MPLX LP (MPLX) is a master limited partnership (MLP) that owns and operates midstream energy infrastructure assets in North America. It offers a generous and growing distribution yield, however, MPLX comes with its own set of risks and is not suitable for all investors.
| Section | Information |
|---|---|
Overview |
Business: MPLX is a diversified, growth-oriented master limited partnership (MLP) formed in 2012 by Marathon Petroleum Corporation (MPC). The company owns and operates midstream energy infrastructure assets, providing logistics and transportation services for crude oil, refined products, and natural gas. MPLX operates primarily in the United States, with a growing presence in the international markets. Target Market: MPLX serves oil and gas producers, refineries, petrochemical companies, utilities, and retail fuel distributors. Market Share: As a leading player in the midstream energy sector, MPLX has a significant presence in key basins across the US. It holds a major market share in natural gas gathering and processing, accounting for approximately 10% of the market. MPLX also maintains a strong presence in crude oil and refined product pipeline transportation. Mission Statement: "To be the premier midstream provider in the United States, delivering safe, reliable, and cost-effective solutions for our customers." Core Values: Safety, Integrity, Excellence, Teamwork, Responsibility. |
Business Model |
Revenue Generation: MPLX generates revenue and profits through transportation fees (charging fees for transporting crude oil, refined products, and natural gas through its pipelines and marine fleet), storage fees (generating revenue from storage services for crude oil, refined products, and natural gas liquids), and marketing and processing fees (earning fees from processing and marketing NGLs). Value Chain: MPLX operates across the entire energy value chain. In the upstream, it sources products from oil and gas producers. In the midstream, the company gathers, processes, transports, and stores crude oil, refined products, and NGLs. In the downstream, MPLX delivers products to refineries, petrochemical companies, utilities, and retail fuel distributors. Key Partners and Suppliers: Key partners and suppliers include Marathon Petroleum Corporation (MPC), third-party oil and gas producers, pipeline and terminal operators, as well as rail and barge transportation companies. Revenue Streams: MPLX's revenue streams are diversified, with crude oil and refined product transportation accounting for 46%, natural gas transportation for 25%, NGL gathering and processing for 17%, and storage and terminaling for 12% of revenue. |
Industry Competition |
Main Competitors: MPLX faces competition from major players in the midstream energy sector, including Kinder Morgan (KMI), Energy Transfer (ET), Magellan Midstream Partners (MMP), and Enbridge (ENB). Industry Trends: The industry experiences increasing demand for natural gas and NGLs, a growing focus on energy efficiency and clean energy solutions, expansion of the global LNG market, and potential infrastructure bottlenecks and capacity constraints. |
Competitive Advantage |
Strong financial backing from MPC: MPLX benefits from the strong financial support of Marathon Petroleum Corporation (MPC). Extensive and integrated midstream infrastructure network: MPLX possesses a comprehensive network supporting its midstream operations. Diversified business model and revenue streams: MPLX's business model is diversified, contributing to multiple revenue streams. Experienced management team: The company is led by an experienced management team with a track record of success. Commitment to safety, reliability, and sustainability: MPLX emphasizes safety, reliability, and sustainability in its operations. |
Management Team |
Key Members:
Qualifications and Track Record: The management team brings extensive experience in the energy industry, a proven track record of leading and growing successful companies, and recognition for their strategic vision, operational excellence, and financial acumen. Awards and Recognition: MPLX has received accolades such as "Top 10 Most Admired Companies" by Fortune magazine, "America's Best Mid-Cap Employers" by Forbes magazine, and "Best Managed Companies" by Institutional Investor magazine. |
Financial Performance |
Recent Financial Performance (2023 Highlights):
Notable Trends: MPLX demonstrates steady growth in revenue and earnings, consistent dividend payouts to investors, and an increasing focus on cost control and operational efficiency. Upcoming Events and Factors: MPLX anticipates potential increased demand for its services due to rising energy prices, continues its focus on infrastructure expansion and development, and acknowledges the potential impact of regulatory changes and environmental concerns. |
Investment Thesis |
Reasons to Invest:
Risks to Consider:
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Conclusion |
MPLX is a leading midstream energy company with a strong track record of growth and profitability. The company is well-positioned to benefit from favorable industry trends and offers investors a compelling combination of growth, income, and value. While risks remain, MPLX presents an attractive opportunity for investors seeking exposure to the midstream energy sector. |
| Section | Details |
|---|---|
MPLX Dividend Data |
MPLX LP (MPLX) has an annual dividend of $3.40 per share. The dividend is paid every three months. The last ex-dividend date was on February 2, 2024. |
MPLX Dividend Yield |
The forward yield of MPLX is 8.84%. This means that for every $100 invested in the company's stock, investors would receive $8.84 in dividends per year. |
MPLX Dividend History |
MPLX has a history of paying dividends quarterly. The most recent change in the company's dividend was an increase of $0.0750 on Tuesday, October 24, 2023. |
MPLX Dividend Payout & Dividend Payout Ratio |
MPLX's dividend payout ratio is 89.24%. This means that MPLX pays out 89.24% of its earnings as dividends. |
MPLX Dividend Stability & Growth |
MPLX's dividend has grown by an average of 4.91% per year over the past three years. However, it's worth noting that the dividend has not been stable over the last 10 years. |
| MPLX | Plains All American Pipeline (PAA) | Enbridge (ENB) | |
|---|---|---|---|
Industry Focus |
Midstream energy infrastructure and logistics | Midstream energy infrastructure and logistics | Midstream energy infrastructure and logistics |
Current Yield |
8.84% | 7.73% | 7.76% |
Price-to-Earnings Ratio (P/E) |
10.63 | 12.33 | 16.85 |
Investment Strategy |
Expansion of existing assets, increasing gathering and processing capacity | The PAA strategy combines both risky assets and safe assets. Risky assets offer opportunities for growth, while safe assets provide protection when the market is unstable. The aim of this strategy is to adjust asset allocation based on market conditions, seeking consistent returns while avoiding significant risks. | Enbridge's strategy is focused on predictable cash flows, dividend growth, and investment in energy infrastructure assets strategically positioned between supply basins and demand markets. With a strong balance sheet and a diversified portfolio, Enbridge is well-equipped to navigate the dynamic energy landscape. |
When considering the attractiveness of MPLX's dividend, it's important to look at the historical data and growth of MPLX LP's dividends. The company has a history of consistent dividend payouts, with a notable annual dividend growth. However, the dividend date and the payout ratio are two factors that could impact the income generated from this investment. The payout ratio, in particular, is a key indicator of the sustainability of the dividend. A high payout ratio could limit the company's ability to cover the dividend in the future, especially if earnings per share decline. Furthermore, MPLX's dividends are distributed on a quarterly schedule, and the last ex-dividend date is an important date on the dividend calendar for shareholders.
The performance of MPLX's common units in your portfolio should also be analyzed in relation to other assets, such as ETFs. The trend of MPLX's dividend can provide valuable insights into the company's financial health and its ability to generate income for shareholders. Lastly, it's crucial to consider the risks associated with MPLX's core business. As a midstream energy company, MPLX, a common unit of Marathon Petroleum Corporation, operates in the logistics and pipeline industry. This sector can be influenced by various factors, including fluctuations in energy prices and regulatory changes. Therefore, while MPLX’s dividend history and growth may be attractive, these additional considerations should not be overlooked. Please note that this information is for informational purposes only and should not be used as the sole basis for making investment decisions. Always conduct your own research or consult with a financial advisor before making investment decisions.