MENU
Go to the list of all blogs
Niko Sharks's Avatar
published in Blogs
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 +0.94% Uptrend, rising for three consecutive days on September 09, 2026

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where MPLX advanced for three days, in 184 of 354 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Aroon Indicator entered an Uptrend today. In 178 of 408 cases where MPLX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 44%.

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 21 of 72 cases where MPLX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 29%.

The Momentum Indicator moved below the 0 level on September 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MPLX as a result. In 26 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 31%.

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 51 similar instances when the indicator turned negative. In 14 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 27%.

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%.

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 39, 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 (4.257) is normal, around the industry mean (185.895). P/E Ratio (12.665) is within average values for comparable stocks, (25.221). Projected Growth (PEG Ratio) (3.093) is also within normal values, averaging (3.870). Dividend Yield (0.073) settles around the average of (0.051) among similar stocks. P/S Ratio (5.123) is also within normal values, averaging (4.703).

The Tickeron SMR rating for this company is 31 (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 35 (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 46 (best 1 - 100 worst), indicating fairly steady price growth. MPLX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

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 16.99B. The market cap for tickers in the group ranges from 7.66K to 105.61B. ENB holds the highest valuation in this group at 105.61B. The lowest valued company is AVACF at 7.66K.

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 4%, and the average quarterly price growth was 16%. RBNE experienced the highest price growth at 15%, while BANL experienced the biggest fall at -36%.

Volume

The average weekly volume growth across all stocks in the Oil & Gas Pipelines Industry was 39%. For the same stocks of the Industry, the average monthly volume growth was 29% and the average quarterly volume growth was -34%

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: 44
SMR Rating: 53
Profit Risk Rating: 39
Seasonality Score: 8 (-100 ... +100)
View a ticker or compare two or three
MPLX
Daily Signal:
Gain/Loss:
Interact to see
Advertisement
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a developer of pipelines and other midstream assets

Industry OilGasPipelines

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