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MPLX LP (MPLX)
NYSE:MPLX
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MPLX
(NYSE:MPLX)
81Outperform
Positive Factors
Distribution Growth
MPLX accelerated growth to 12.5% in 2024 and indicated an ability to sustain this new higher level in the future.
Financial Performance
Free cash flow before dividends exceeded expectations, indicating strong financial health.
Operational Performance
Adjusted EBITDA was above consensus estimates, reflecting better-than-anticipated operational performance.
Negative Factors
Cash Flow
Free cash flow per unit was down approximately 2% year-over-year.
Debt Management
Net Debt to EBITDA ratio was higher than what was anticipated.
Operational Challenges
Refined product pipeline throughput was lower than expected, which might indicate operational challenges.
MPLX (MPLX) vs. S&P 500 (SPY)
Market Cap
$53.61B
Dividend Yield6.94%
Average Volume (3M)2.07M
Price to Earnings (P/E)12.5
Beta (1Y)0.48
Revenue Growth4.30%
EPS Growth10.45%
CountryUS
Employees6,200
SectorEnergy
Sector Strength53
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)4.21
Shares Outstanding1,022,509,770
10 Day Avg. Volume1,420,136
30 Day Avg. Volume2,070,757
Financial Highlights & Ratios
PEG Ratio1.19
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.29
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.66
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$58.80Price Target Upside15.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
MPLX Business Overview & Revenue Model
Company DescriptionMPLX 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.
How the Company Makes MoneyMPLX makes money primarily through its two main segments: Logistics and Storage (L&S) and Gathering and Processing (G&P). The Logistics and Storage segment generates revenue by charging fees for the transportation of crude oil and refined products through its extensive network of pipelines, as well as for the storage of these products in its strategically located tank farms and terminals. The Gathering and Processing segment earns income by providing natural gas gathering, processing, and fractionation services, essential for producers to prepare natural gas for sale. MPLX benefits from long-term, fee-based contracts, ensuring stable and predictable cash flows. Additionally, the company's close relationship with its sponsor, Marathon Petroleum Corporation, provides a steady stream of business and strategic advantages, further enhancing its revenue potential.
MPLX Financial Statement Overview
Summary
MPLX exhibits a strong financial position across all key financial segments. The company has maintained robust growth in revenue and profitability, supported by an efficient balance sheet with no debt burden. Cash flows are healthy, reflecting effective management of operations and capital expenditures. The overall financial health is indicative of sustained operational excellence and fiscal prudence, positioning MPLX well for future growth and shareholder value creation.Income Statement
MPLX has demonstrated strong financial performance in TTM (Trailing-Twelve-Months) with a solid Gross Profit Margin of 59.7% and a Net Profit Margin of 38.7%. The company has also shown consistent revenue growth, with a 4.6% increase from the previous year. A notable increase in EBIT and EBITDA margins to 44.5% and 53.9% respectively, indicates strong operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet of MPLX reveals robust financial stability with a Debt-to-Equity Ratio of 0, indicating no leverage risk. The Equity Ratio stands at 36.8%, showcasing a strong capital structure. Additionally, an impressive Return on Equity of 31.3% highlights substantial profitability relative to shareholder equity.90
Very Positive
Cash Flow
MPLX's cash flow statement is impressive with a Free Cash Flow Growth Rate of 16.6% in TTM, pointing to solid cash generation. The Operating Cash Flow to Net Income Ratio is 1.37, indicating efficient conversion of income to cash flow. Moreover, the Free Cash Flow to Net Income Ratio of 1.20 underscores the company’s capability to produce ample cash relative to net income.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.93B | 10.68B | 10.54B | 9.57B | 8.25B | Gross Profit |
| 10.37B | 4.82B | 4.29B | 4.05B | 3.59B | EBIT |
| 5.29B | 4.90B | 3.68B | 2.75B | 1.04B | EBITDA |
| 6.59B | 6.11B | 5.67B | 5.00B | 4.73B | Net Income Common Stockholders |
| 4.36B | 3.93B | 3.94B | 3.08B | -687.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.52B | 1.05B | 238.00M | 13.00M | 15.00M | Total Assets |
| 37.51B | 36.53B | 35.66B | 35.51B | 36.41B | Total Debt |
| 21.21B | 20.91B | 20.30B | 19.06B | 20.68B | Net Debt |
| 19.69B | 19.87B | 20.06B | 19.05B | 20.66B | Total Liabilities |
| 23.50B | 22.95B | 23.12B | 23.45B | 23.40B | Stockholders Equity |
| 13.81B | 13.35B | 12.55B | 12.05B | 13.02B |
| Cash Flow | Free Cash Flow | |||
| 4.89B | 4.46B | 4.21B | 4.38B | 3.34B | Operating Cash Flow |
| 5.95B | 5.40B | 5.02B | 4.91B | 4.52B | Investing Cash Flow |
| -2.00B | -1.25B | -956.00M | -518.00M | -1.26B | Financing Cash Flow |
| -3.48B | -3.33B | -3.84B | -4.39B | -3.26B |
MPLX Technical Analysis
Negative
50.93
Price Trends
52.13
Negative
50.78
Positive
46.65
Positive
Market Momentum
-0.03
Negative
48.42
Neutral
76.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPLX, the sentiment is Negative. The current price of 50.93 is above the 20-day moving average (MA) of 50.22, below the 50-day MA of 52.13, and above the 200-day MA of 46.65, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MPLX.
MPLX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $53.61B | 12.46 | 31.78% | 6.94% | 4.30% | 10.45% | |
79 Outperform | $56.75B | 12.88 | 13.40% | 7.54% | 5.20% | 18.35% | |
72 Outperform | $71.50B | 32.24 | 17.92% | 3.23% | 8.06% | -30.11% | |
72 Outperform | $60.15B | 23.40 | 8.43% | 4.23% | 2.02% | 5.40% | |
71 Outperform | $39.00B | 31.25 | 47.62% | 1.68% | 6.45% | 56.33% | |
62 Neutral | $54.89B | 16.99 | 18.11% | 4.55% | 40.55% | 19.24% | |
56 Neutral | $6.93B | 3.27 | -3.99% | 5.91% | -0.52% | -47.74% |
* Energy Sector Average
Performance Comparison
MPLX
MPLX
50.93
12.20
31.50%
ET
Energy Transfer
16.54
1.89
12.90%
KMI
Kinder Morgan
26.30
8.68
49.26%
OKE
Oneok
82.16
7.70
10.34%
TRGP
Targa Resources
170.90
60.08
54.21%
WMB
Williams Co
58.57
21.53
58.13%
MPLX Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q4-2024)
| % Change Since: -0.93%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call had a positive tone, highlighting strong financial performance, robust growth in natural gas and NGL services, strategic partnerships, and significant capital returns to unit holders. While there were increased maintenance costs and some uncertainties around M&A and asset drops, the positive aspects significantly outweighed the lowlights.Q4-2024 Updates
Positive Updates
Record Adjusted EBITDA Growth
Full year adjusted EBITDA was $6.8 billion, an 8% increase year-over-year, marking the fourth consecutive year of mid-single digit adjusted EBITDA growth.
Expansion in Natural Gas and NGL Services
Two processing plants were placed into service, achieving record throughput. MPLX now handles over 10% of all natural gas produced in the U.S. Significant investments are planned in this segment.
Significant Capital Returns and Distribution Increase
Increased quarterly distribution by 12.5%, marking the third consecutive year of a 10% or more increase. Nearly $4 billion was returned to unit holders in 2024.
Strategic Partnership and New Project Announcement
Announced the construction of a Gulf Coast Fractionation Complex and export terminal in partnership with ONEOK to enhance the NGL value chain, with a $2.5 billion investment.
Strong Financial Performance
Fourth quarter adjusted EBITDA was $1.8 billion, a 9% increase from the prior year. Ended the quarter with $1.5 billion in cash and maintained strong financial flexibility.
Negative Updates
Increased Maintenance Capital Expenditures
A noticeable jump in maintenance CapEx for 2025 due to regulatory requirements and asset maintenance.
Uncertain Future for Additional Drops and M&A
While there are potential M&A opportunities, the focus remains on organic growth, with drops from MPC assets being a lower priority.
Company Guidance
During the MPLX Fourth Quarter 2024 Earnings Call, the company reported a robust financial year with an adjusted EBITDA of $6.8 billion, marking an 8% year-over-year increase. MPLX highlighted its investment efforts, totaling $1.7 billion in organic growth projects and strategic acquisitions, which are expected to yield mid-teens returns. The company achieved a significant milestone by handling over 10% of U.S. natural gas production and increased its quarterly distribution by 12.5%. Looking ahead, MPLX outlined a capital expenditure outlook of $2 billion for 2025, with 85% earmarked for Natural Gas and NGL Services projects, including a new Gulf Coast Fractionation Complex. The firm anticipates maintaining its mid-single-digit EBITDA growth, supported by strategic partnerships and expansion projects, while continuing to return substantial capital to unitholders.MPLX Corporate Events
Executive/Board Changes
MPLX Appoints New Vice President and Controller
Neutral
Jan 28, 2025
On January 22, 2025, MPLX GP LLC appointed Rebecca L. Iten as Vice President and Controller, effective March 3, 2025, succeeding Kelly D. Wright, who will take on a new role at Marathon Petroleum Corporation. Ms. Iten brings extensive experience from her previous roles and will continue to receive her compensation through MPC, indicating MPLX’s ongoing reliance on MPC for management personnel.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.