
MPLX is a leading midstream energy company that operates a vast network of pipelines and terminals across the US.
The company's stock quote is influenced by its strong industry position, with a market capitalization of over $20 billion.
MPLX's business model is centered around providing critical infrastructure for the transportation and storage of crude oil, natural gas liquids, and refined products.
Its pipeline network spans over 14,000 miles, making it one of the largest in the US.
Company Information
MPLX is a master limited partnership that was spun off from Marathon Petroleum in 2012. It focuses on the midstream segment of the oil and gas industry, primarily in the United States.
MPLX has a significant presence in the Gulf Coast region, with a major hub in Houston, Texas. The company's assets include pipelines, storage facilities, and terminals.
MPLX has a strong financial foundation, with a market capitalization of over $20 billion. It has a dividend yield of around 5% and a payout ratio of about 80%.
Operations
MPLX operates with a focus on efficiency, with a network of approximately 9,400 miles of crude oil and natural gas pipelines.
MPLX's operations are supported by a strong logistics and transportation network, which enables the company to efficiently move crude oil and natural gas from production areas to refineries and other markets.
Partnership Units
As you explore the operations of MPLX LP, it's essential to understand the partnership units that make up the company's structure.
MPLX LP has a strong track record of maintaining a "Buy" rating from various analysts, including Barclays Capital, J.P. Morgan, and Stifel, Nicolaus & Co., Inc. These analysts have consistently recommended buying MPLX LP partnership units, with some upgrading their rating to "Buy" over time.
The partnership units have seen a steady increase in price, with a high of $49 in April 2024 and a low of $36 in July 2023. This fluctuation in price is likely due to market conditions and analyst opinions.
Analysts have also consistently recommended holding MPLX LP partnership units, with Morgan Stanley and Citigroup Corp. maintaining a "Hold" rating since July 2023. This suggests that some analysts believe the partnership units may not be as valuable as other investment options.
Here's a summary of the partnership units' performance:
The partnership units have also been a source of dividend income for investors, with MPLX LP paying out an average annual dividend of $2.85 since 2014. This dividend yield has ranged from 1.82% in 2014 to 9.35% in 2021.
Oil and Gas Transportation
Oil and Gas Transportation is a crucial aspect of operations, and recent developments in the industry are worth noting.
Truist Securities recently raised its price target on MPLX to $55 from $48, while maintaining a Buy Rating.
MPLX LP has seen its price target adjusted by several firms, with UBS also increasing its target to $55 from $51, and maintaining a Buy Rating.
These adjustments suggest a positive outlook for MPLX, which could have implications for the broader oil and gas transportation sector.
The latest price targets from Truist Securities and UBS are $55 and $55 respectively, both of which are higher than the previous targets of $48 and $51.
Options Overview Details
In the world of options trading, understanding the volatility of a stock is crucial. Implied volatility stands at 22.23%, a 1.01% increase from the previous day.
Historical volatility is slightly lower at 21.61%. This tells us that the stock's price movement has been relatively consistent over time.
The IV Percentile is at 100%, indicating that the current implied volatility is higher than 99% of all historical data. Similarly, the IV Rank is 100.00%, showing that the current implied volatility is at an all-time high.
The highest IV recorded was 22.23% on January 28th, 2025, while the lowest was 9.33% on February 9th, 2024.
Here's a breakdown of the current put/call ratio and volume:
Financials
MPLX LP has a market capitalization of $51.76B, with a free float not specified. The company's enterprise value is around $70.86B. Its P/E ratio is expected to be around 12.1x in 2024, decreasing to 11.6x in 2025.
MPLX LP's annual sales are approximately $11,281M, with an annual income of $3,928M. The company's EBIT is around $6,585M, while its EBITDA is around $7,853M. Its 60-month beta is 1.43.
Here are some key financial metrics for MPLX LP:
MPLX LP's price to earnings (P/E) ratio is around 12.24, with a yield of 7.11% in 2024. The company's most recent earnings were $1.01 on November 5, 2024, with the next earnings date scheduled for February 4, 2025.
Valuation
MPLX LP's valuation metrics are quite interesting. The company's market capitalization has fluctuated between 41.62B and 74.49B.
In 2024, the P/E ratio is expected to be 12.1x, while in 2025, it's expected to be 11.6x. This slight decrease in P/E ratio from 2024 to 2025 suggests a potential decrease in the company's stock price.
Enterprise value has also seen significant changes, ranging from 56.98B to 113B. The EV/Sales ratio in 2024 is expected to be 5.95x, decreasing to 5.6x in 2025.
Free-Float is not available for MPLX LP, but the yield is expected to be 7.11% in 2024 and 7.88% in 2025.
Fundamentals
As we dive into the financials of this company, let's start with the fundamentals. The market capitalization is a staggering $51.8 billion, indicating a significant market presence.
The company has a substantial number of shares outstanding, with 1,018,812 shares available in the market. This can impact the stock's price and volatility.
Annual sales have been impressive, reaching $11.3 billion. This revenue stream is crucial for the company's growth and profitability.
The company's income has been steadily increasing, reaching $3.9 billion annually. This is a positive sign for investors looking for a stable income stream.
EBIT (Earnings Before Interest and Taxes) stands at $6.5 billion, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is $7.8 billion. These metrics indicate a strong operating performance.
Here's a snapshot of the company's financial metrics:
The company's beta of 1.43 indicates a relatively high level of volatility, which may appeal to risk-tolerant investors. The price-to-sales ratio of 4.79 suggests that the stock is trading at a premium compared to its peers.
Frequently Asked Questions
Is MPLX dividend sustainable?
MPLX's dividend payout ratio is 0.83, raising concerns about sustainability, but its good profitability prospects and consistent net profit over the past decade suggest a potentially stable dividend. However, further analysis is needed to confirm the long-term sustainability of MPLX's dividend.
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