MPLX LP is recommended as a strong buy due to its attractive 7.71% yield and solid long-term growth prospects in midstream infrastructure. The company's strategic emphasis on natural gas, particularly sour gas treatment in key regions like the Permian and Marcellus, supports EBITDA and margin growth. MPLX plans $2.4 billion in growth capital expenditure by 2025, with 90% directed towards natural gas and NGL services, aiming for mid-teen project returns after 2028. Despite a premium valuation, strong internal cash returns, stable distributions, and favorable sector trends reinforce confidence in the investment.
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...
