MPLX: The Best MLP For Income

Louis Gerard1.61K FollowersFollow5ShareSavePlay(10min)CommentsSummaryMPLX (NYSE: MPLX) remains a Strong Buy, driven by robust earnings, strategic Permian expansion, and industry-leading distribution growth.MPLX delivered a double beat in Q3, with revenue up 21.9% Y/Y and a 12.5% annual distribution hike, targeting similar growth through 2027.Strategic moves include the Northwind Midstream acquisition, divestiture of Rockies assets, and new tolling agreements, enhancing profitability and specialized market positioning.Valuation is elevated (EV/EBITDA 13.58), justified by sector-best distribution growth, high utilization, and resilient margins, but single-customer concentration remains a key risk. ra-photos/iStock via Getty Images Introduction Following my recent catch-up phase with midstream companies, a sector that I really enjoy investing in due to its basic business model, overall undervaluation, and great yield, I want to revisit MPLX, a StrongThis article was written byLouis Gerard1.61K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

Through Seeking Alpha, I aim to connect with like-minded investors, share insights, and build a collaborative community of individuals seeking superior returns and informed decision-making, currently on a quest to review every public company.Analyst’s Disclosure:I/we have a beneficial long position in the shares of MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You