MPLX LP: A Buffett-Style 9.2% Yielding Blue-Chip for Retirement Dreams
June 16, 2023
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MPLX LP ($NYSE:MPLX) is an ideal blue-chip stock for a Buffett-style retirement portfolio, offering a 9.2% yield. The company is a Master Limited Partnership (MLP) that operates in the midstream energy sector, and is best known for its transportation, storage, and distribution of petroleum products. MPLX LP has a strong financial position, with a solid balance sheet, strong cash flow, and ample liquidity. The company has been able to maintain its high dividend payouts even during market downturns, making it a reliable source of income for retirees.
In addition, MPLX LP has a diversified portfolio of midstream assets and is well-positioned to benefit from increased demand for energy products. With its high yield and strong financials, MPLX LP is an attractive stock for any Buffett-style retirement portfolio.
Analysis
At GoodWhale, we conducted an analysis of MPLX LP‘s wellbeing. Recently, using our Star Chart tool, we classified MPLX LP as a ‘rhino’ company, which indicates that it has achieved moderate revenue or earnings growth. This type of company could be attractive to investors who prioritize dividend payments and consistent growth. We found that MPLX LP is particularly strong in dividend and growth potential, as well as profitability. However, their asset building capacity is weaker than the average company. Nonetheless, they have a high health score of 8/10 considering their cashflows and debt, which suggests that they are capable of paying off debt and funding future operations. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mplx Lp. More…
| Total Revenues | Net Income | Net Margin |
| 10.59k | 3.94k | 38.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mplx Lp. More…
| Operations | Investing | Financing |
| 5.12k | -900 | -3.87k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mplx Lp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 35.67k | 22.62k | -0 |
Key Ratios Snapshot
Some of the financial key ratios for Mplx Lp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.2% | 11.1% | 46.9% |
| FCF Margin | ROE | ROA |
| 40.7% | -51781.2% | 8.7% |
Peers
MPLX LP is a publicly traded master limited partnership that owns, operates, develops, and acquires midstream energy infrastructure assets. The company’s asset portfolio includes approximately 11,800 miles of crude oil and light product pipelines, approximately 8,200 miles of natural gas pipelines, approximately 36 natural gas processing plants, and approximately 50 crude oil and light product storage facilities. MPLX LP is headquartered in Findlay, Ohio.
MPLX LP’s primary competitors are Marathon Petroleum Corp, Energy Transfer LP, and Magellan Midstream Partners LP. All three companies are engaged in the business of transporting, storing, and processing petroleum products.
– Marathon Petroleum Corp ($NYSE:MPC)
Marathon Petroleum Corp is an oil refining and marketing company with a market cap of $54.29B as of 2022. The company has a return on equity of 32.4%. Marathon Petroleum Corp is engaged in the refining, marketing, retailing and transportation of petroleum products and crude oil. The company operates through three segments: Refining & Marketing, Retail, and Midstream. Marathon Petroleum Corp was founded in 1887 and is headquartered in Findlay, Ohio.
– Energy Transfer LP ($NYSE:ET)
Energy Transfer LP is a master limited partnership that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas storage facilities, and crude oil pipelines. Energy Transfer’s natural gas pipelines transport natural gas from production areas to market centers. The company’s crude oil pipelines transport crude oil from production areas to refineries and market centers. Energy Transfer’s natural gas storage facilities provide storage capacity for natural gas. The company also owns and operates natural gas gathering and processing facilities.
Energy Transfer’s market cap as of 2022 is 36.67B. The company has a Return on Equity of 14.71%. Energy Transfer’s business is focused on the transportation, storage, and gathering of natural gas and crude oil. The company’s pipelines transport natural gas and crude oil from production areas to market centers. Energy Transfer’s natural gas storage facilities provide storage capacity for natural gas. The company also owns and operates natural gas gathering and processing facilities.
– Magellan Midstream Partners LP ($NYSE:MMP)
Magellan Midstream Partners LP is a publicly traded partnership that owns, operates, and leases a diversified portfolio of energy infrastructure assets in the United States. The company’s assets include approximately 8,400 miles of pipelines, 80 terminals, and six product storage facilities. Magellan Midstream Partners LP is headquartered in Tulsa, Oklahoma.
Summary
MPLX LP is a publicly-traded master limited partnership (MLP) which provides midstream services to the energy industry. It has an impressive 9.2% dividend yield, making it an attractive option for investors seeking income potential. The MLP has a long-term focus on growth, which is supported by its well-diversified portfolio with operations in the United States and Canada.
Additionally, its strong balance sheet provides stability and helps ensure that the dividend payments are reliable and sustainable. MPLX LP also has a strong commitment to enhancing shareholder value through disciplined capital allocation and cost control. Its assets are located in areas that provide access to advantaged markets, helping to ensure consistent cash flows from a variety of sources. For investors seeking a retiree-friendly blue-chip to add to their portfolio, MPLX LP is an ideal choice given its competitive dividend yield, solid financial metrics, and long-term growth prospects.
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