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Nov 16, 2018
Is MPLX LP the Next Shining Star In The Energy Sector?

Is MPLX LP the Next Shining Star In The Energy Sector?

A diversified midstream energy infrastructure and logistics company, MPLX, has been growing leaps and bounds in the last few quarters. But only few have noticed.

Despite having excellent and fast improving fundamentals, along with a high yield, the company hasn’t been able fully engage investor interest. The main reason, perhaps, is that the investor community has recently seen a number of master limited partnerships blow up.

What makes MPLX any different?

MPLX is differentiated by its recession resistant and seemingly low-risk self-funding business model, its short-term hyper growth strategy, its calculated investment strategies which act as a catalyst for its long-term growth, and finally, its strong balance sheet.

The company focused on developing an extensive portfolio of growth projects, but also made sure it didn’t take on too much debt to accomplish its goal. This has resulted in consistently improving quarterly performance.

The company reported its 23rd consecutive quarterly distribution increase to $0.6375 per common unit for the third-quarter 2018. Adjusted EBITDA and distributable cash flow for the quarter stood at $937 million and $766 million respectively, which provided 1.47x distribution coverage and resulted in 3.8x leverage. They also reported 74% adjusted EBIDTA growth in Q3 on a y-o-y basis, and 23% y-o-y adjusted EBITDA growth after excluding the impact from drawdowns.

This rapid growth pace is giving management plenty of cash to invest in the business, while maintaining its streak of consistently increasing its pay-out every quarter.

Related Ticker: MPLX

MPLX in upward trend: price may ascend as a result of having broken its lower Bollinger Band on September 25, 2026

MPLX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 16 of 23 cases where MPLX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 70%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 33 of 54 cases where MPLX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 61%.

Following a +1.08% 3-day Advance, the price is estimated to grow further. Considering data from situations where MPLX advanced for three days, in 177 of 352 cases, the price rose further within the following month. The odds of a continued upward trend are 50%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 21, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MPLX as a result. In 21 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 24%.

The Moving Average Convergence Divergence Histogram (MACD) for MPLX turned negative on September 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 10 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 20%.

MPLX moved below its 50-day moving average on September 24, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for MPLX crossed bearishly below the 50-day moving average on September 28, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 2 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 14%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where MPLX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 31%.

The Aroon Indicator for MPLX entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Profit vs. Risk Rating rating for this company is 2 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 41, placing this stock better than average.

The Tickeron Valuation Rating of 7 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.168) is normal, around the industry mean (179.095). P/E Ratio (12.400) is within average values for comparable stocks, (22.536). Projected Growth (PEG Ratio) (3.029) is also within normal values, averaging (13.660). Dividend Yield (0.075) settles around the average of (0.050) among similar stocks. P/S Ratio (5.038) is also within normal values, averaging (4.657).

The Tickeron SMR rating for this company is 30 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 34 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. MPLX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are Enterprise Products Partners LP (NYSE:EPD), Energy Transfer LP (NYSE:ET), Kinder Morgan (NYSE:KMI), Targa Resources Corp (NYSE:TRGP), Cheniere Energy (NYSE:LNG), Plains All American Pipeline LP (NASDAQ:PAA), Antero Midstream Corp (NYSE:AM), CMB.TECH NV (NYSE:CMBT), Plains GP Holdings LP (NASDAQ:PAGP), Scorpio Tankers (NYSE:STNG).

Industry description

Oil & Gas Pipelines industry includes companies that transport natural gas and crude oil through pipelines. These companies also collect and market the fuels. The pipeline segment could be considered as a midstream operation – functioning as a link between the upstream and downstream operations in the oil and gas industry. Some of the largest U.S. pipeline players include Enterprise Products Partners L.P, TC Energy Corporation and Energy Transfer, L.P.

Market Cap

The average market capitalization across the Oil & Gas Pipelines Industry is 16.25B. The market cap for tickers in the group ranges from 32.88K to 104.83B. ENB holds the highest valuation in this group at 104.83B. The lowest valued company is BROGF at 32.88K.

High and low price notable news

The average weekly price growth across all stocks in the Oil & Gas Pipelines Industry was -1%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was 10%. DHT experienced the highest price growth at 13%, while NFE experienced the biggest fall at -22%.

Volume

The average weekly volume growth across all stocks in the Oil & Gas Pipelines Industry was -6%. For the same stocks of the Industry, the average monthly volume growth was -25% and the average quarterly volume growth was -6%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 25
P/E Growth Rating: 54
Price Growth Rating: 49
SMR Rating: 53
Profit Risk Rating: 40
Seasonality Score: 22 (-100 ... +100)
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General Information

a developer of pipelines and other midstream assets

Industry OilGasPipelines

Industry
Oil And Gas Pipelines
Address
200 East Hardin Street
Phone
+1 419 422-2121
Employees
5762
Web
https://www.mplx.com
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