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 how to withdraw money from metatrader 4 and Processing. The company was incorporated in 2012 and is headquartered in Findlay, Ohio. MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.
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Since then, MPLX stock has increased by 8.3% and is now trading at $35.57. While MPLX LP has reported notable financial success, it is essential to consider the company’s debt levels and their impact on its overall financial picture. MPLX LP maintains a debt-to-equity ratio that should i buy microsoft stock indicates a moderate level of debt. It is crucial for the company to carefully manage its debt obligations to maintain financial stability and flexibility in the face of potential market fluctuations. The technique has proven to be very useful for finding positive surprises.
That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Rallied 5.7% in premarket trade Wednesday, after the energy midstream logistics master limited partnership agreed to be acquired by MPLX L.P. FINDLAY, Ohio , May 2, 2023 /PRNewswire/ — First -quarter net income attributable to MPLX of $943 million and net cash provided by operating activities of $1,227 million, up 14% and 9%, respectively,…
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Monitoring the development of the profit margins for MPLX is a key point in the coming quarters. The revenue is quite stable given the largest customer is MPC which is also the largest owner, it’s a beneficial partnership essentially. I think that the share price of MPLX does offer some good immediate upside potential as well and with a dividend that is sustainable given the high FCF being generated a buy rating is suitable here.
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Nonetheless, it’s essential to recognize that a simultaneous decrease in both volumes and natural gas prices could pose challenges for MPLX. Dividend yield shows how much a company pays its shareholders in dividends annually per dollar invested. It reflects how much an investor will earn aside from any capital gains in the stock. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
- Volumes represent a significant potential risk factor, especially in the context of the current low natural gas prices.
- MPLX LP has demonstrated a solid financial performance in recent years, reflecting its effective management and strategic positioning within the midstream energy industry.
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FINDLAY, Ohio , August 2, 2022 /PRNewswire/ — Reported second-quarter net income attributable to MPLX of $875 million and adjusted EBITDA attributable to MPLX of $1.5 billion Generated $1.5 billion i… FINDLAY, Ohio , Nov. 1, 2022 /PRNewswire/ — Net income attributable to MPC of $4.5 billion , or $9.06 per diluted share; reported adjusted net income of $3.9 billion, or $7.81 per diluted share Adjus… FINDLAY, Ohio , Jan. 31, 2023 /PRNewswire/ — Fourth -quarter net income attributable to MPLX of $816 million and full-year net income of $3.9 billion Fourth -quarter adjusted EBITDA attributable to M… Moving over to the performance of the company so far though, MPLX has rapidly grown the asset base and since peaking in 2019 it sits at $35 billion right now. The company has been able to raise the asset base by adding additional goodwill on the balance sheet, but also most notably more gross property, plant & equipment. Here are three stocks our experts recently bought, and why they think each is attractive.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
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The payout ratio is very high and is supported by strong bottom-line growth. The dividend itself has also been growing very well in the last couple of years, at 11.5% annually last 5 years. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. The company is scheduled to release its next quarterly earnings announcement on Tuesday, October 31st 2023.
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Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain DIY Financial Advisor other reasons have been excluded from these return calculations. We expect MPLX to generate over $500 million in excess cash flow after capital spending and distributions in 2023.
MPLX LP to Report Second-Quarter Financial Results on August 1, 2023
The earnings multiple I would be comfortable buying them at a premium given the historical track record of growth by the business. The bottom line has doubled since 2018 without doubling the asset base. MPLX is a midstream company with operations spanning across two key segments. The first segment, known as Logistics and Storage, constitutes a significant portion, contributing approximately two-thirds of its EBITDA. This segment is underpinned by robust, long-term agreements characterized by fee-based structures that include minimum volume commitments.
What is perhaps one of the more interesting parts about MPLX is the ownership of the business. Marathon Petroleum Corporation (MPC) is a majority owner of MPLX at around 65%. Additionally, it’s important to highlight that MPC holds a substantial role in MPLX LP’s financial landscape. MPC accounts for approximately 47% of the company’s revenue, solidifying its position as MPLX’s largest customer by a significant margin. It’s an interesting side note, but one that shouldn’t bring any risks to the business or the buy case. If the market is doing good, both MPLX and MPC will likely be doing good.
The company has achieved a healthy net profit margin of over 30%, showcasing its ability to generate robust returns on its operations. These results highlight MPLX LP’s effective cost management and operational efficiency. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
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FINDLAY, Ohio , Aug. 1, 2023 /PRNewswire/ — Reported second-quarter net income attributable to MPLX of $933 million and generated net cash provided by operating activities of $1,437 million Adjusted … According to 8 analysts, the average rating for MPLX stock is “Buy.” The 12-month stock price forecast is $39.88, which is an increase of 12.12% from the latest price. Over the last couple of years, the p/e for MPLX has come down quite a lot. What seems to be the reason for this I think is the high payout and dividend yield which is taking away some of the capital for expansion. This isn’t to say that MPLX doesn’t have any immediate upside potential. If we value it the same as the sector it offers around a 15% upside to reach a p/e of roughly 10.2.