MPLX LP has earned a Strong Buy rating due to its strong income generation and unit price appreciation despite volatile markets. The company’s recent shift in capital expenditure towards natural gas and natural gas liquids (NGL) services is expected to boost adjusted EBITDA growth, with 2026 projected to outperform 2025. Distribution growth is highly sustainable, with a likely 12.5% increase as distributions currently represent only 58.5% of estimated adjusted EBITDA. Although MPLX trades at a premium EV/EBITDA multiple, this is justified by its leading distribution growth, superior yield compared to peers, and clear EBITDA expansion prospects.
Midstream Master Limited Partnerships (MLPs) experienced a 10.1% increase in normalized distributions in 2025, reflecting broad-based dividend growth supported by improved free cash flow and reduced leverage. Over the past decade, MLPs have strengthe...
The Alerian MLP ETF (AMLP) is up about 17% year-to-date, trading near $53 with a 7.8% yield from a $4.12 forward payout. AMLP holds major midstream MLPs like MPLX, Enterprise Products, Energy Transfer, and Western Midstream, which recently raised the...
