MPLX LP

MPLX crude pipelines are connected to supply hubs, and transport crude oil to Marathon Petroleum Corporation’s, or MPC’s, refineries and third parties.

Crack spreads usually fall when crude oil prices (USO) increase by more than product prices, or when product prices fall more than crude oil prices.

The Henry Hub–Mont Belvieu fractionation spread rose to $13.0 per barrel in the week ending May 13, 2016. The spread was $12.4 per barrel in the previous week.

The US crude oil (USO) supply includes domestic production and imports. The supply gets consumed as inputs to refineries and exports.

The Alerian MLP Index is trading at a yield of ~7.9%, which is ~5% higher than US ten-year Treasury yields.

Of the analysts surveyed by Reuters, 71.0% recommend a “buy” for Energy Transfer Equity (ETE), and the remaining 29.0% of analysts recommend “hold.”

Let’s take a look at midstream stocks trading at attractive yields. The stocks have a market capitalization of over $5 billion and yields over 7.0%.

Gathering and processing MLPs were the best performing MLPs in the first quarter of 2017. The subgroup rose 14.7%.

Plains All American Pipeline reported its 1Q18 results on May 8 after the market closed. The company reported 16% YoY growth in the adjusted EBITDA.

Antero Midstream Partners, Viper Energy Partners, and Hoegh LNG Partners have the most “buys” among all the publicly traded limited partnerships.

There’s a widespread consensus that the worst is over for the MLP sector. Savvy investors seem to be willing to give the sector a second chance.

Of Wall Street analysts surveyed by Reuters, 74.0% of analysts rate ETE as a “buy” and the remaining 26.0% rate it as a “hold” as of July 28.

The yield spread between the Alerian MLP Index yield and the US ten-year Treasury yield contracted to 5.0% at the end of Q3 from 5.1% at the end of Q2.

Prompt New York Harbor ultra-low-sulfur diesel futures traded on the NYMEX closed ~2.4% higher on a weekly basis at ~$1.62 per gallon in the week ended September 4.

Marathon Petroleum Corporation, or MPC, owns 100% of the MPLX general partnership, or GP, interests, as well as the incentive distribution rights.

MPLX generated total returns, including distributions, of 17% in the last year. Its total returns over five years stand at 28%.

Energy Transfer Partners and Energy Transfer Equity are among the top midstream companies that offer high upside potentials.

Gasoline prices loosely track changes in crude oil prices (USO), usually Brent crude oil prices, the international benchmark.

ONEOK (OKE) reported its 1Q18 results yesterday. The company’s adjusted EBITDA grew 24% YoY in 1Q18.

Master limited partnerships or MLPs saw continued strong earnings growth in 1Q18 after a solid fourth quarter of 2017.

Hi-Crush Partners reported its second-quarter results on July 31 after the markets closed. The company reported an adjusted EBITDA of $81.5 million.

Hi-Crush Partners (HCLP) fell 5% during the week that ended on August 24. The stock has been on a downward trajectory for over a month.

The benchmark US Gulf Coast 3:2:1 crack spread rose 4.4% to $17.385 per barrel in the week to June 26—compared to $16.65 per barrel on June 19.

The Henry Hub-Mont Belvieu fractionation spread, or frac spread, fell by 13.8% to $7.7 per barrel by the end of the week ending July 29, 2016.

Gasoline production increased from ~9.68 million barrels per day (or MMbpd) in the week ended July 24 to 9.98 MMbpd in the week ended July 31.

Gasoline inventories declined in the week ended October 9. So, net trade flows, or exports, could be the key to last week’s inventory draw.

Midstream MLPs have recovered after hitting multiyear lows early this month. The ALPS Alerian MLP ETF (AMLP) is up more than 10% in the last two weeks.

The ALPS Alerian MLP ETF (AMLP), the representative of the top MLPs in the US, plunged to record lows last week. It’s trading near its all-time low of $7.7.

Several midstream stocks hit their respective 52-week lows in the last five days. Crude oil prices took a hit yesterday amid concerns over trade talks.

The top MLP funds saw net inflows in October. The Alerian MLP ETF (AMLP) had net inflows of $105.7 million for the month.

Despite stable earnings and dividend growth, MLP stocks are depressed. We look at the top midstream energy stocks’ performance in the past 12 months.

The total refiners capacity in the US is around 18.8 million barrels per calendar day. The refinery utilization rate in 2018 was 93%.

In this article, we’ll look at five MLPs with at least 90% buy ratings: EPD, MPLX, Energy Transfer, Viper Energy Partners, and Black Stone Minerals.

Of the top midstream companies we’ve discussed in this series, only ONEOK (OKE) and Cheniere Energy (LNG) have met analysts’ mean price targets from a year ago.

All of the analysts surveyed by Reuters covering Enterprise Products Partners (EPD) and MPLX (MPLX) rated the stocks as “buy.”

Enterprise Products Partners (EPD) spent ~$4.2 billion on growth projects in 2018.

On May 8, Marathon Petroleum (MPC), MPLX LP (MPLX), and Andeavor Logistics LP (ANDX) announced that MPLX would acquire ANDX.

In this article, we’ll take a look at how Enterprise Products Partners (EPD) stock may perform leading up to its earnings release on May 1.

Energy Transfer (ET) offers a distribution yield of 7.9%, which is higher than its five-year average yield.

According to its latest 13F filing, Tortoise Capital Advisors sold net ~0.9 million shares of MPLX (MPLX) and held 3.4% of its total outstanding shares as of December 31.

Enterprise Products Partners, Magellan Midstream Partners, and MPLX are trading at attractive yields of 6.4%, 6.5%, and 7.6%.

Midstream stocks and MLPs continued to gain in the third week of 2019. The Alerian MLP Index rose 1.9% in the week ending January 18.

Energy Transfer (ET) stock was rated a “strong buy” or “buy” by 88% of analysts surveyed by Reuters.

With simplified structures and greater financial discipline, MLPs look better-equipped to perform in the volatile commodity price environment.

MPLX’s mean target price is $42. The target price implies an upside potential of ~22% from MPLX’s current price of $34.5.

The US crude oil production was 11 million barrels per day for the week ending September 14, according to data from the EIA.

Crude oil prices rose ~4.3% last week, and the Energy Select Sector SPDR ETF (XLE) rose 2.7%. How did top midstream stocks fare?

With strengthening oil prices, investor interest in the energy sector is on the rise. Many wonder if now is the right time to invest.

In this article, we’ll look into the institutional activity in Plains All American Pipeline (PAA) during the first quarter.

Of the analysts covering Kinder Morgan (KMI), 64% recommended “buy,” and 36% recommended “hold.”

Genesis Energy is expected to post 27.4% YoY EBITDA growth in the first quarter of 2018 compared to 1Q17.

In this series, we’ll look at the top ten midstream companies based on earnings growth expectations for 1Q18.

Midstream companies such as Kinder Morgan (KMI), Targa Resource (TRGP), and ONEOK (OKE) are taxed as C-corps, so the revised policy doesn’t apply to them.

About 78.9% of analysts rate MPLX LP as a “buy,” and the remaining 21.1% rate it as a “hold.”

MPLX LP (MPLX) expects its 2018 capital expenditure to be ~$2.4 billion, which represents a 47.0% increase compared to the previous year.

Harvest Fund Advisors and CIBC Atlantic Trust Private Wealth Management added major positions in Plains All American Pipeline during the fourth quarter.

Bank of America Merrill Lynch and Citi Investment Research were the biggest sellers in MLPX LP (MPLX) during the fourth quarter.

The yield spread between the Alerian MLP Index (^AMZ) and the ten-year Treasury has widened due to the recent correction.

Williams Partners, the largest natural gas gatherer in the Marcellus and Utica regions, is expected to see strong volume growth in the regions in the fourth quarter.

Antero Midstream Partners has lost 8.4% since the beginning of this year.

CVR Partners (UAN), the MLP mainly involved in the production of nitrogen fertilizers, was the top MLP gainer last week. CVR Partners rose 7.7%.

MPLX (MPLX) has seen a sharp rise in total outstanding debt over the first two quarters of 2017, rising from $4.4 billion at the end of 2016 to $6.7 billion as of June 30, 2017.

Shares of Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) rose 1.9% and 1.8%, respectively, on August 1 after the asset sale announcement.

Antero Midstream Partners (AM) expects its business mix to evolve from current gathering and compression activities to the inclusion of natural gas processing and fractionation activities over the coming years.

ETP subsidiary, Lone Star NGL, announced the construction of a fifth fractionator at Mont Belvieu one day after its 4Q16 results.

On January 3, 2017, Marathon Petroleum (MPC) announced key initiatives related to its MLP MPLX (MPLX).

Liquids pipelines and terminaling MLPs, as the name suggests, are involved in crude oil, refined product, and NGLs (natural gas liquids) transportation and storage.

In this article, we’ll look at types of MLP contracts for midstream MLPs. Midstream MLPs generally have fixed-fee contracts.

Elliott Management’s first recommendation is to immediately drop down suitable midstream assets to MPLX (MPLX), MPC’s midstream MLP.

Operating income from the gathering and processing segment for 2Q16 was $271 million, which is almost double the income from the logistics and storage segment of $123 million.

The Henry Hub–Mont Belvieu fractionation spread rose for the third consecutive week to $14.5 per barrel last week.

NYMEX near-month Henry Hub natural gas futures contracts rose last week after three consecutive weekly declines.

The Henry Hub-Mont Belvieu fractionation spread rose to $11.53 per barrel in the week ending March 25. The spread was $11.37 per barrel the previous week.

Heating oil prices were at $2.17 per gallon on January 18, which represents a fall of $0.05 per gallon compared to prices for the previous week.

A recovery in oil prices could mean a higher MPLX stock price. However, this also means that MPLX shares would remain under pressure as long as crude oil prices remain weak.

In this series, we’ll analyze MPLX’s price targets, the performance of MPLX’s various segments, and its leverage. We’ll also examine its distributable cash flows, capital expenditure, and distribution growth.

Enbridge Energy Partners expects its 2015 full-year coverage to be between 0.9 to 0.96 times. It aims for a long-term coverage ratio greater than 1.

US gasoline prices mirrored crude oil prices and began falling early last week. They fell to their lowest in six years on Monday.

If investors set up the MarkWest-MPLX merger spread and wait for the deal to close, they’ll make a -6.1% return. This means investors expect a competing bidder or a bump in the consideration.

In a press release published on July 13, 2015, MarkWest Energy Partners (MWE) and MPLX LP (MPLX) announced that the two MLPs have agreed to merge.

MPLX also owns tank farms, or pipeline storage facilities. These storage assets also serve as “breakout tanks” for MPLX’s crude and product pipeline system.

MPLX LP (MPLX) is a master limited partnership, or MLP. It was formed by independent refiner Marathon Petroleum Corporation (MPC).

MPLX stock jumped almost 6% in a single day on this announcement. An upbeat earnings report also helped the stock gain.

Canton to East Sparta consists of two parallel pipelines that connect MPC’s Canton refinery with the MPLX East Sparta, Ohio, breakout tankage and station.

Marathon Petroleum Corporation (MPC) recently announced an agreement with Enbridge Energy (EEP) to serve as an anchor shipper on its Sandpiper Pipeline.