Analyst’s Disclosure: I/we have a beneficial long position in the shares of ET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
High midstream yields look tempting until a payout cut wipes out a year of income, so the real question is not the yield itself but whether the cash flow behind it can actually survive a rough quarter.
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Midstream operators pay some of the largest yields in the S&P 500, but coverage is the number that matters most. That is the whole game for retirees leaning on this corner of energy. Enterprise Products Partners set the bar in the most recent quarter with operational distributable cash flow of $2.3 billion, or 1.9x coverage of the cash distribution, and the two peers below run their own coverage math in the same neighborhood. Here are three US-listed midstream names where the fee-based cash flow, the balance sheet, and the payout track record all line up behind the yield.
Enterprise Products Partners Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is the archetype for coverage-first income. The partnership declared a Q2 2026 distribution of $0.56 per common unit, or $2.24 annualized, a 2.8% year-over-year increase, with units at $39.17 as of September 3, 2026.
Q2 operational DCF of $2.3 billion covered the distribution 1.9 times, and after paying $1.2 billion in cash distributions the partnership retained $1.1 billion for internally funded growth capex and buybacks. Management said EBITDA alone “provided one times coverage of our distributions”, meaning the payout does not require any DCF adjustments to be covered. The balance sheet backs that up: weighted average cost of debt is 4.7%, roughly 97% of debt is fixed rate, weighted average life is about 17 years, and consolidated leverage sits at the 3.0 target on a net basis. The distribution history is a straight staircase: $0.515 in early 2024, then $0.525, $0.535, $0.545, and $0.56 by the July 2026 ex-date.
The bull case for an income investor is boring in the best way possible. Enterprise generated record adjusted EBITDA of $2.83 billion, up 17% year over year, on record pipeline volumes of 14.7 MMBPD and marine terminal volumes of 2.8 MMBPD. Its LPG export capacity is roughly 90% contracted, and $6.5 billion of organic projects under construction feed fee-based volume growth through 2029. As a limited partnership, EPD issues a K-1 rather than a 1099, which changes the tax paperwork for retirement investors and can complicate IRA holdings.
The exposure to NGL and crude commodity price swings can move the equity barrel and marketing lines from quarter to quarter, and does represent some level of risk. Also, management noted that the Middle East-driven demand surge in April and May had largely normalized by June and July.
MPLX LP MPLX (NYSE:MPLX) offers the most aggressive payout growth of this trio. The partnership held its quarterly distribution at $1.0765 per common unit, an annualized $4.306, with units at $59.34 as of September 3, 2026. Management has committed to 12.5% annual distribution growth in both 2026 and 2027, following the same rate in each of the prior two years.
Q2 2026 distributable cash flow of $1.45 billion comfortably funded the payout, and CFO Chris Hagedorn said “Our current organic plan gives us confidence in maintaining that 1-3 coverage”, with CEO Maryann Mannen adding that “We continue to target our 1.3 coverage ratio for both 26 and 27 and frankly beyond”. Leverage is 3.7x versus a target of 4.0x. The distribution schedule shows an increase from $0.9565 in August 2025 to $1.0765 by the November 2025 ex-date, held steady for the four most recent quarterly payments. There is one asterisk in the long-term record income investors should see with their own eyes: the feed shows an unusual $1.28 payment on November 10, 2021 followed by lower quarterly amounts, so “uninterrupted annual increase” is not the right framing for anything older than the current run.
Gathering throughput rose 15% year over year to 6,859 MMcf/d, Marcellus processing utilization ran 96%, and over 90% of the raised $2.9 billion 2026 growth capex is directed to Permian and Marcellus natural gas and NGL infrastructure at mid-teens returns. Key projects in the pipeline include Harmon Creek III, the BANGL expansion to 300 mbpd, the Blackcomb 2.5 Bcf/d line, two 150 mbpd Gulf Coast fractionators, and a 400 mbpd LPG export terminal JV. MPLX is also a partnership, so K-1 tax treatment applies here as well.
The implied risk here is the heavy dependence on parent Marathon Petroleum as primary customer and general partner, plus rising net interest expense on a larger debt balance.
Williams Companies Williams (NYSE:WMB) is the C-corp of the group, which means a 1099 rather than a K-1 and no MLP wrinkles inside a retirement account. The 2026 annualized dividend is $2.10 per share, a 5% increase from $2.00 in 2025, with shares at $74.05 as of September 3, 2026. The dividend history is a clean staircase: $0.41 quarterly in 2021, $0.425 in 2022, $0.4475 in 2023, $0.475 in 2024, $0.50 in 2025, and $0.525 in 2026.
Williams guides 2026 dividend coverage of 2.36x to 2.45x on AFFO guidance of $6.085 billion to $6.315 billion, well above the dividend outlay. Q2 adjusted EBITDA rose 6% year over year to $1.921 billion, and the company raised its 2026 adjusted EBITDA midpoint by $200 million to $8.4 billion. Longer-term, management now targets 11%+ compound annual EBITDA growth through 2030. Post-Momentum leverage sits at roughly 3.75x.
Williams signed the Momentum Midstream acquisition for up to $5.5 billion, adding 4,000+ miles of pipe and 1 million+ dedicated acres in the Haynesville at roughly 8.5x projected 2027 EBITDA, accretive to AFFO/share and EPS. Announced projects include the Shelby Connector at up to 750 million cubic feet per day into Louisiana Energy Gateway and Delta Access, a fully contracted 2.25 Bcf/d line expandable to 3.5 Bcf/d. The Blackstone Power Innovation JV adds $5.34 billion of capital for data-center power buildout, capped at a 6.35% cost of equity. CEO Chad Zamarin summarized it: “We are expanding our contracted project portfolio, investing in high-return opportunities and maintaining financial strength and flexibility, all of which support a higher long-term growth target.”
It’s worth noting that the risk for Williams is leverage climbing to about 3.75x with the Momentum deal, higher net interest expense, regulatory approval risk on the acquisition, and commodity price exposure through gas marketing margins.
Coverage That Actually Backs the Yield These three names show what real dividend safety looks like in midstream: EPD at 1.9x DCF coverage with an MLP balance sheet at its 3.0 leverage target, MPLX defending a 1.3x coverage floor while committing to 12.5% distribution growth in 2026 and 2027, and Williams guiding to 2.36x to 2.45x AFFO coverage on a fee-based Transco backbone. Each is funding a large, largely contracted growth capex program that extends the visibility of the payout well past 2027, with LNG exports and Permian/Haynesville egress carrying the volume story. For an income investor, the choice is really a tax preference: two K-1 partnerships that reinvest more of their coverage internally, and one C-corp with the widest coverage cushion of the group. Coverage this wide is what makes a dividend ladder that never touches principal actually work, and we laid out how to build one in a free guide here.
Contact [email protected] for any questions or corrections.
A month has gone by since the last earnings report for MPLX LP (MPLX - Free Report) . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MPLX LP due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for MPLX LP before we dive into how investors and analysts have reacted as of late.
MPLX Q2 Earnings & Revenues Beat Estimates on Gas & NGL Volume GrowthMPLX reported second-quarter 2026 earnings of $1.06 per unit, up 2.9% from $1.03 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $1.04 per unit by 1.9%.
Total revenues and other income increased 10.3% to $3.31 billion from $3 billion a year earlier. The top line beat the consensus estimate of $3.19 billion by 3.8%.
The strong quarterly results were driven by higher gathering and fractionation volumes. Adjusted EBITDA increased 5% to $1.78 billion.
MPLX's Income Rises Despite Higher CostsNet income attributable to MPLX increased to $1.08 billion from $1.05 billion in the year-ago quarter. Income from operations improved 6.6% to $1.38 billion, driven by higher contributions from both operating segments.
Total costs and expenses increased 13.1% to $1.93 billion from $1.71 billion recorded in the prior-year quarter. Operating expenses, including purchased product costs, increased to $1.01 billion from $821 million, while depreciation and amortization rose to $365 million from $324 million. Net interest and other financial costs increased 23.5% to $289 million.
MPLX's Logistics Business Delivers GrowthCrude Oil and Products Logistics segment adjusted EBITDA increased 2% to $1.16 billion. Higher rates across the business and increased butane blending more than offset lower crude pipeline throughput and higher operating expenses.
Total pipeline throughput declined 4% to 5.88 million barrels per day (MMBbl/d). Crude oil pipeline volumes fell 5% to 3.83 MMBbl/d from 4.01 MMBbl/d, while product pipeline volumes decreased 2% to $2.05 MMBbl/d from $2.09 MMBbl/d in the prior-year quarter.
Terminal throughput increased 2% to 3.26 MMBbl/d, and the average pipeline tariff rate edged up 1% to $1.07 per barrel.
MPLX's Gas & NGL Services Operations Gain MomentumNatural Gas and NGL Services segment adjusted EBITDA advanced 11% to $614 million. The increase reflected higher volumes, contributions from equity affiliates and acquisitions. These benefits were partly offset by the 2025 divestiture of non-core Rockies gathering and processing assets.
Gathering throughput rose 5% to 6.86 billion cubic feet per day (Bcf/d), while fractionation volumes increased 7% to 680,000 barrels per day (Bbl/d). Natural gas processed declined 2% to 9.59 Bcf/d. Excluding divested assets, gathering and processing volumes increased 15% and 5%, respectively.
MPLX’s Cash Flow Funds Capital ReturnsNet cash provided by operating activities totaled $1.70 billion compared with $1.74 billion a year ago. Distributable cash flow increased to $1.45 billion from $1.42 billion, while adjusted free cash flow totaled $668 million.
MPLX declared a distribution of $1.0765 per unit, up from 95.65 cents a year earlier, resulting in 1.3X coverage. The partnership returned more than $1.1 billion to unitholders, including $50 million through unit repurchases. Management expects distribution increases of 12.5% in 2026 and 2027.
MPLX Maintains Balance SheetThe partnership ended June with $1.03 billion in cash, $2.5 billion available under its revolving credit facility and $1.5 billion available through its intercompany loan agreement with Marathon Petroleum. Total debt was $25.64 billion, while leverage remained at 3.7X.
MPLX's Projects Support Second-Half GrowthMPLX placed the 200-million-cubic-feet-per-day (MMcf/d) Secretariat I processing plant into service in April. The partnership exited the quarter with 86% utilization across its Delaware Basin processing system. Marcellus processing utilization reached 96%, supporting record volumes across the system.
Harmon Creek III began operations in August, adding 300 MMcf/d of processing capacity and 40,000 Bbl/d of de-ethanization capacity. The BANGL pipeline expansion to 300,000 Bbl/d, Blackcomb pipeline and Titan sour gas treating expansion are expected to enter service in the fourth quarter.
MPLX's Capital Spending Outlook IncreasesThe partnership raised its 2026 capital spending outlook by $500 million to $2.9 billion. The increase primarily reflects accelerated work on its Gulf Coast fractionation project, pulling forward spending previously planned for early 2027.
More than 90% of organic growth capital is directed toward natural gas and natural gas liquids infrastructure. Management expects the project sequence to drive stronger adjusted EBITDA in the third quarter than the second quarter, followed by sequential growth in the fourth quarter. MPLX continues to target mid-single-digit adjusted EBITDA growth for 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates revision.
VGM ScoresCurrently, MPLX LP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook MPLX LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMPLX LP belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, Pembina Pipeline (PBA - Free Report) , has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Pembina Pipeline reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +20%. EPS of $0.48 for the same period compares with $0.47 a year ago.
Pembina Pipeline is expected to post earnings of $0.46 per share for the current quarter, representing a year-over-year change of +48.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -7.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pembina Pipeline. Also, the stock has a VGM Score of F.
September is typically a weak month for stocks. It's the only calendar month with a negative historical average return for the S&P 500 (^GSPC -0.71%), mainly due to a mix of seasonal portfolio rebalancing moves, negative media coverage, and the Fed's interest rate decision.
But for long-term investors who can tune out near-term noise, September is generally a good time to buy stocks. I think it's still a great time to buy a few income-generating energy stocks that have a history of resisting market downturns while paying stable yields. Let's take a look at two of those stocks that could easily turn a $10,000 investment into more than $600 in annual income: Energy Transfer (ET -0.42%) and MPLX (MPLX -0.14%).
Image source: Getty Images.
The similarities between Energy Transfer and MPLX Energy Transfer and MPLX are both midstream pipeline companies that charge upstream producers and downstream refiners "tolls" for using their infrastructure. That "toll road" model is well insulated from volatile commodity prices, since it only needs the resources to keep flowing through its pipes to generate stable cash flow.
Energy Transfer and MPLX are both master limited partnerships (MLPs) instead of traditional C corporations. MLPs are pass-through entities that don't pay corporate taxes, whereas corporations must pay corporate taxes on their profits and dividends.
MLPs blend their own income with a return of capital in their distributions, which defers an investor's tax obligation until the investment is sold. But for every year you hold an MLP, you'll need to file a separate K-1 form with the IRS to report those tax-deferred distributions.
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The differences between Energy Transfer and MPLX Energy Transfer operates more than 140,000 miles of pipeline across 44 states. MPLX, which was spun off from Marathon Petroleum (MPC +2.59%) in 2012, operates over 10,000 miles of crude oil and light product pipelines across 14 states.
Energy Transfer has a massive footprint across all major U.S. basins and transports natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, and other refined products. It also helps companies export some of their natural gas products. MPLX's smaller network is concentrated in the Appalachian and Permian Basins and mainly transports crude oil, refined petroleum products, natural gas, and NGLs associated with Marathon Petroleum's operations.
Energy Transfer is more of a play on the surging demand for natural gas and NGLs, especially among power-hungry data centers. MPLX is a more diversified play on refinery supply chains, fuel distribution logistics, and natural gas production in the Appalachian region.
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Both companies pay attractive distributions Energy Transfer and MPLX pay forward yields of 6.4% and 7.3%, respectively. Those high distributions are easily supported by their distributable cash flow (DCF). In 2025, Energy Transfer's adjusted annualized DCF of $8.2 billion comfortable covered its $4.6 billion in distributions. MPLX's $5.8 billion in annualized DCF also covered its $4.1 billion in distributions.
Energy Transfer plans to raise its distributions by 3%-5% annually. MPLX plans to grow its distributions more aggressively, at about 12.5% annually through 2027.
Both stocks are cheaply valued Energy Transfer and MPLX are trading at just 18 times and 12 times last year's earnings per unit (EPU), respectively, making them cheaper than many other energy stocks. Energy Transfer is trading at a higher multiple because it's more exposed to the AI and cloud markets.
So while the war in Iran and other geopolitical conflicts might rattle other energy stocks this month, Energy Transfer and MPLX remain reliable income plays in a wobbly market. They're not exciting investments, but they'll help you forget all about the so-called "September Effect".
AMLP looks like an easy button for pipeline income, but a structural quirk buried in its fund wrapper quietly erodes your returns before a single dollar reaches your account. Three direct MLP holdings fix the problem and pay you more…
If you hold the Alerian MLP ETF (NYSEARCA:AMLP) for its fat energy income, you are hardly alone. AMLP has become the default one-ticker way to own a basket of pipeline master limited partnerships without the K-1 tax paperwork. However there are some drawbacks to this holding, AMLP holds more than 25% MLPs and it is organized as a C-corporation, which means the fund itself pays corporate tax on gains and income before anything reaches you. Layer a management fee on top, and this ETF quietly bleeds return every year while underlying MLPs go up. Three direct holdings can do the same job with more distribution growth and no fund-level tax drag.
What the Wrapper Costs You AMLP’s C-corp structure creates a deferred tax liability that reduces net asset value as the underlying MLPs appreciate. That is why the fund has historically trailed the Alerian MLP Infrastructure Index it tracks. You also pay a fund expense ratio on top of that tax drag. In exchange, you get a 1099 instead of a K-1 and diversification across roughly fifteen midstream names. But if your goal is income that compounds, the tax layer is a structural headwind that direct ownership sidesteps entirely.
Enterprise Products Partners: Coverage King of Midstream Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is the blue chip of the group. The Q2 2026 quarterly distribution was $0.56 per unit, an annualized $2.24, up 2.8% year over year. Dividend safety is exceptional: operational distributable cash flow hit a record $2.3 billion in the quarter, covering the payout 1.9 times. Adjusted EBITDA reached a record $2.83 billion, and management retained $1.1 billion for growth and buybacks after paying distributions. CEO Jim Teague noted “record earnings and cash flow in the second quarter of 2026” alongside $6.5 billion of organic projects under construction. Units are up 27.33% year to date. The bull case is straightforward: fee-based cash flows, 1.9x coverage, and a fortress balance sheet. Distribution growth is modest, so total return depends on volumes and project execution.
MPLX: Growth Compounder With 12.5% Distribution Hikes MPLX (NYSE:MPLX) is the aggressive income play. The Q2 2026 distribution was $1.0765 per unit, and management has publicly committed to 12.5% distribution growth in both 2026 and 2027, targeting a 1.3 coverage ratio. That growth cadence is the largest gap versus AMLP’s diluted, tax-drag-reduced distribution. Leverage sits at 3.7x, below the 4.0x target. Growth capex was raised by $500 million to $2.9 billion, with over 90% directed at Permian and Marcellus NGL infrastructure at mid-teens returns. CEO Maryann Mannen guided to “mid-single digit adjusted EBITDA growth” in the second half. Units are up 17.56% year to date. Marathon Petroleum controls roughly 647 million of the 1,014 million outstanding units and is MPLX’s largest customer, creating concentration risk.
Energy Transfer: Scale Play With 140,000 Miles of Pipeline Energy Transfer (NYSE:ET) rounds out this trio for investors who want maximum scale and geographic reach. The Q2 2026 distribution of $0.34 per unit (annualized $1.36) marked the nineteenth consecutive quarterly increase. Adjusted EBITDA jumped 31% to $5.07 billion, and management raised 2026 EBITDA guidance to $18.8 billion to $19.1 billion. Distribution policy targets 3% to 5% annual growth with leverage held at 4 to 4.5 times EBITDA. Approximately 140,000 miles of pipeline across 44 states gives it optionality on data-center gas demand and LNG exports. Long-term debt closed 2025 at $68.3 billion, up from $59.8 billion, and interest expense keeps climbing.
Real Tradeoffs to Weigh Direct MLP ownership requires three K-1s at tax time instead of a 1099. Holding MLPs inside an IRA can trigger unrelated business taxable income (UBTI) once it exceeds $1,000, so these belong in a taxable account. Three names is more concentrated than AMLP’s basket, so you trade diversification for growth and tax efficiency. If you already own AMLP in a taxable account at a gain, switching triggers a capital-gains event that should be weighed against ongoing structural drag.
Where This Leaves You If your AMLP position sits in a taxable account and you bought it primarily for income, a partial rotation into EPD, MPLX, and ET captures the same midstream exposure with better distribution growth and no fund-level tax layer. If you own it inside an IRA specifically to sidestep K-1s and UBTI, the wrapper is doing exactly what you hired it for and the swap does not fit. Frame it as a fit question, and the answer usually writes itself (if you are sizing what a mid six-figure balance can actually throw off in monthly income from names like these, we sketched the full math in a free guide: From $250K to $1,500 a Month).
Contact [email protected] for any questions or corrections.
Holding high-yield BDCs, REITs, and MLPs in a taxable account quietly hands thousands of dollars to the IRS every year, and the account type you choose matters far more than the stocks themselves.
Tax Cost Hiding Inside Your Brokerage Account At the 24% federal ordinary-income bracket, a portfolio throwing off $50,000 a year in non-qualified dividend income hands $12,000 straight to the IRS every filing season. That is the annual price of holding high-yield BDCs, REITs, and MLPs in a taxable account when the payouts hit your return as ordinary income rather than as qualified dividends.
Same Five Stocks, Two Very Different Outcomes The five names below share one trait that makes Roth placement especially valuable: their distributions land largely as ordinary income. Yields are pulled live from current market data.
Main Street Capital (NYSE:MAIN | MAIN Price Prediction), a business development company (BDC), yields 5.29% with a $0.265 monthly base plus recurring $0.30 supplemental distributions. BDC income flows through as ordinary income. Realty Income (NYSE:O), a net-lease real estate investment trust (REIT), yields 5.12% and has now delivered its 115th consecutive quarterly dividend increase. REIT distributions are largely non-qualified. Ares Capital (NASDAQ:ARCC), the largest publicly traded BDC, yields 9.71% with a $0.48 quarterly dividend that is taxed at your marginal rate outside a Roth. MPLX LP (NYSE:MPLX), a midstream master limited partnership (MLP), yields 7.35% after a $1.0765 quarterly distribution. Note the UBTI $1,000 threshold before sizing large MLP positions in a Roth. Enterprise Products Partners (NYSE:EPD), another midstream MLP, yields 5.74% with a $0.56 quarterly distribution and the same UBTI caveat. Anchor Comparison: $500K at the 24% Bracket Use the platform math from the series framework. A $500,000 position sized to an 8% blended yield generates $40,000 in gross annual income. Inside a taxable account at 24%, that income nets $30,400 after tax. Inside a Roth, the same portfolio nets the full $40,000. The Roth advantage is $9,600 per year, every year. Held for a decade with no additional contributions or reinvestment, that is nearly $100,000 of income the taxable investor never sees.
Bracket Multiplier: Higher Earners Bleed Faster The Roth advantage scales directly with your marginal rate. The higher your bracket, the more of every distribution the taxable account gives up.
Federal Bracket Share of Every Dividend Dollar Lost in Taxable Share Retained Inside Roth 22% 22 cents 100 cents 24% 24 cents 100 cents 32% 32 cents 100 cents 37% 37 cents 100 cents A reader in the top bracket forfeits more than a third of every distribution from ARCC, MAIN, and the MLP names when they sit in a taxable account. That is the case for putting the highest-yielding, ordinary-income payers in the Roth first, and it is the same logic behind our free guide on turning a mid six-figure balance into a monthly paycheck, here.
Insight Most Readers Miss: The Compounding Layer The Roth advantage compounds. It is the annual tax leakage reinvested tax-free for as long as you own the position. Anchor back to the $9,600 annual delta at 24%. Reinvested every year at a conservative rate that matches the portfolio’s blended yield, the ten-year and twenty-year gap widens well beyond the sum of the annual savings. Nothing about that requires forecasting stock appreciation. It is the same distribution stream, taxed once or not at all, compounding on itself.
Total returns underscore why these five are worth the Roth slot in the first place. MAIN is up 104.93% over five years. ARCC is up 61.85%. MPLX has advanced 226.51% and EPD 151.18% over the same window. High-yield names can still deliver meaningful capital appreciation.
What to Do Before Your Next Contribution If you hold any BDC or mortgage REIT in a taxable account, calculate your annual tax drag at your marginal bracket before your next tax filing, then compare it to the Roth conversion cost on that specific position. Model a phased Roth conversion starting with the ordinary-income payers on this list: ARCC and MAIN first, then O, before any qualified-dividend names. For MLPs like MPLX and EPD, run the UBTI numbers against the $1,000 threshold inside your Roth before sizing the position, so the shelter does not create a Form 990-T filing you did not plan for. Contact [email protected] for any questions or corrections.
Midstream energy is quietly printing some of the fattest, most reliable income checks in the market right now, and three pipeline giants are leading the charge with raised payouts, record cash flows, and growth backlogs that stretch years into the…
Midstream energy is quietly having a moment. Natural gas volumes tied to LNG exports, data center power demand, and Permian growth are lifting throughput across the biggest US pipelines, and the three names below are turning that traffic into some of the most reliable checks in the income market. All three trade in positive territory year to date, all three raised their payouts in 2026, and all three back their distributions with fee-based cash flow rather than commodity swings (for readers thinking about how far a dividend book like this actually goes, we sketched a full plan for turning $250K into $1,500 a month in a free report here). Here is how the September income lineup stacks up.
Enterprise Products Partners (EPD) Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is the anchor position in most midstream income portfolios, and Q2 explains why. The MLP (which issues a K-1 rather than a 1099) reported record adjusted EBITDA of $2.8 billion, a 17% increase over the second quarter of last year, alongside adjusted cash flow from operations of $2.5 billion. Operational DCF hit $2.3 billion with 1.9x distribution coverage, giving management more than enough room to keep raising the payout.
The board declared a 56 cent per unit distribution for Q2 2026, a 2.8% increase over the same quarter in 2025, putting the annualized distribution at $2.24 against a recent price of $39.14. Units are up 27.72% year to date and 31.54% over one year. Volumes tell the growth story: 14.7 million barrels a day of oil equivalent moved across the system, with total pipeline volumes up 8% and marine terminals up 33% year over year.
CEO Jim Teague put it simply: "Enterprise reported strong volumes, earnings, and cash flow for the second quarter." With the LPG export terminal expansion on the Houston Ship Channel expected in service by the end of this year and two new 300 MMcf/d Permian processing plants sanctioned, EBITDA growth into 2027 looks well spoken for.
Risk: the K-1 tax form is a headache for some investors, and $33.5 billion in debt principal means rate sensitivity is real. Next earnings report lands October 29, 2026.
MPLX for Best-in-Class Distribution Growth If EPD is the ballast, MPLX (NYSE:MPLX), also an MLP that issues a K-1, is the growth engine. The Marathon-affiliated partnership has raised its quarterly distribution to $1.0765, annualizing at $4.306 against a recent price of $59.32. CEO Maryann Mannen was explicit on the Q2 call: "We anticipate growing our distribution at this rate again in 2026 and in 2027." That is 12.5% annual distribution growth, easily the highest in the peer group.
The distribution is backed by $1.8 billion of adjusted EBITDA in Q2 and a targeted 1.3x coverage ratio for both 2026 and 2027. MPLX is investing over 90% of its organic growth capital in natural gas and NGL infrastructure, and raised its 2026 capex outlook by $500 million to $2.9 billion to pull the Gulf Coast fractionation project forward. Marcellus processing utilization ran at 96%, and gathering volumes rose 15% year-over-year. Units are up 17.7% year to date.
Risk: Q2 EPS of $1.06 came in a hair light of consensus, and heavy dependence on parent MPC is a structural concentration. Next earnings report is November 3, 2026.
Kinder Morgan (KMI) for C-Corp Simplicity and a Gas Backlog Kinder Morgan (NYSE:KMI) is the choice for investors who prefer a 1099 over a K-1. The C-corp structure and investment-grade balance sheet make it the cleanest way to own the natural gas theme.
Q2 delivered a big beat: adjusted EPS of 37 cents, up 32% from the prior year, on adjusted EBITDA up 12%. Management raised 2026 guidance to at least 5% above the original EBITDA budget and at least 12% above the original adjusted EPS budget. The board declared a 29.75 cent quarterly dividend, $1.19 annualized and a 2% increase over 2025, against a recent price of $32.02. Shares are up 19.83% year to date.
The forward story is the $9.6 billion project backlog, roughly 92% natural gas and heavily tied to power generation, LDC demand, and LNG exports. Management is developing projects to serve more than 10 BCF a day of natural gas demand from power generation and approximately 3 BCF a day from LNG, exactly the demand vectors the EIA is flagging as fastest-growing. Leverage ended Q2 at 3.6 times, well below the 4.0 times target. Rich Kinder said KMI can fund the backlog "almost completely with our internally generated cash flow while still continuing to pay a solid and growing dividend."
Risk: dividend growth of 2% is well behind MPLX and modestly behind EPD, so the appeal is stability and C-corp tax treatment rather than payout acceleration. Permitting and CO2 segment volatility are the operational overhangs.
Contact [email protected] for any questions or corrections.
Key Takeaways ET edges MPLX on valuation, price appreciation, analyst optimism and growth projections.ET targets 3%-5% annual distribution growth as power demand and contracted projects support cash flow.MPLX expects mid-single-digit EBITDA growth in 2026 and 12.5% distribution increases in 2026 and 2027. As global energy consumption rises, limited partnerships like Energy Transfer LP (ET - Free Report) and MPLX LP (MPLX - Free Report) support conventional energy needs while increasingly advancing cleaner technologies and carbon-reduction strategies, making them vital to both current systems and the transition to a more sustainable future.
Energy Transfer is a diversified midstream partnership with operations spanning natural gas, NGLs, crude oil, refined products, terminalling, storage and related services in the United States. MPLX LP is a master limited partnership engaged in providing a wide range of midstream energy services, including fuel distribution solutions.
Let's delve deeper to find out which stock between ET and MPLX is better positioned for sustainable growth.
The Case for ETEnergy Transfer gains from a largely fee-based model and a broad natural gas, NGL and crude network that support recurring cash generation. Rising data-center power demand is extending long-term transportation commitments.
It is using its natural gas network to serve incremental electricity demand through laterals, compression and targeted expansions. Existing agreements include natural gas supply to Oracle data centers, Nexus’ AI campus and Entergy Louisiana. ET's integrated Permian-to-Gulf-Coast infrastructure gives it significant leverage to rising NGL production and international demand.
Management’s 2026 plan combines a larger growth backlog with contracted projects and stated return thresholds. The partnership is also advancing Desert Southwest, Springerville and the fully subscribed Nederland export expansion. Management raised 2026 adjusted EBITDA guidance to $18.8-$19.1 billion and expects $5.6-$5.9 billion of growth capital. It says most major projects are backed by long-term commitments and are expected to generate mid-teen returns, supporting earnings growth beyond the current year.
Yet, commodity volatility still affects certain margins and producer-driven activity. The partnership also carries execution risk as its larger capital program advances several major projects. Cash flow remains dependent on operating subsidiaries, while customer concentration and competition can affect precontracting, utilization and returns.
Management continues to target a long-term annual distribution growth rate of 3% to 5%, framing growth within a disciplined capital approach that can be effective during weaker commodity or capital market conditions.
The Case for MPLXMPLX’s principal strength lies in the quality and strategic location of its infrastructure. The partnership operates an extensive portfolio of crude oil, refined-products, natural gas and NGL assets across major U.S. producing regions, with significant exposure to the Permian and Marcellus basins. Its long-lived assets and extensive commercial relationship with Marathon Petroleum support stable, largely fee-based cash flows and limit direct exposure to commodity-price volatility.
New capacity is entering service across the Permian and Marcellus, while increased ownership interests in the BANGL and Matterhorn pipelines strengthen MPLX’s integrated wellhead-to-Gulf Coast network. Management expects adjusted EBITDA to grow at a mid-single-digit rate in 2026, followed by stronger growth in 2027 as recently completed projects ramp up. Cash flows from existing operations and new projects are also expected to support distribution increases of 12.5% in both 2026 and 2027.
However, MPLX’s expanded capital program increases execution and funding requirements. Distribution coverage could remain under pressure as capital spending rises, while higher leverage and elevated interest expenses may constrain financial flexibility. Project delays, cost overruns or slower-than-expected volume growth could weaken anticipated returns. Lower crude pipeline throughput, rising operating expenses and residual commodity-price exposure may also temper earnings growth. Moreover, MPLX’s close commercial relationship with Marathon Petroleum creates customer-concentration risk, leaving its results partly dependent on the operating requirements and strategic priorities of its parent.
Estimates for ET and MPLX The Zacks Consensus Estimate for ET’s 2026 revenues implies a 41% increase, and that for EPS suggests a 37.2% year-over-year increase. EPS estimates for 2026 have moved 15.3% north in the last 30 days. It has a Growth Score of A. The expected long-term earnings growth rate is pegged at 17.2%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MPLX’s 2026 revenues implies a 1.7% increase, and that for EPS indicates a 11.2% decrease. The consensus estimates for 2026 earnings rose 0.7% in the last 30 days. The company has a Growth Score of D. The expected long-term earnings growth rate is pegged at 2.5%.
Image Source: Zacks Investment Research
Price Performance of ET and MPLXET shares have gained 30% year to date, while MPLX shares have gained 11.7% in the same time.
Image Source: Zacks Investment Research
Are ET and MPLX Shares Expensive?ET is trading at a trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) of 9.58X, lower than its median of 9.87 over the past three years. MPLX’s trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) sits at 11.65X, higher than its median of 10.61X over the past three years.
ET is cheaper than MPLX presently.
Image Source: Zacks Investment Research
ConclusionFee-based contracts, rising power demand, contracted infrastructure projects and disciplined distributions support cash flow and long-term growth visibility for Energy Transfer.
Integrated gas and NGL expansion, rising utilization, durable cash generation and distribution growth support MPLX’s long-term investment case for unitholders.
Though both ET and MPLX carry a Zacks Rank #3 (Hold), ET edges MPLX with respect to valuation, price appreciation, analysts’ optimism and growth projections.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Certain high-yield income stocks quietly trigger a tax penalty every single year they sit in a taxable account, and the size of that penalty grows with your bracket in ways most investors never stop to calculate.
A $500,000 basket of business development companies and midstream MLPs currently throws off roughly $42,000 in ordinary income every year. At the 24% federal bracket, that hands the IRS about $10,080 annually before you touch a share. Inside a Roth, that same $10,080 stays in the account, reinvested, tax-free, permanently.
Tax Delta: Roth Versus Taxable at 24% All four names below distribute non-qualified income taxed at ordinary rates in a taxable account. That is why they sit at the top of any Roth placement queue. The blended yield on an equal-weight basket clears 8%, well above the 6% headline threshold, even though one name individually sits slightly below.
Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is an MLP yielding 5.76% on its $2.24 annualized distribution. The Q2 payout rose to $0.56 per unit, extending a steady step-up cadence. Roth placement shelters the ordinary portion of the distribution and eliminates the K-1 reporting burden inside the account.
MPLX (NYSE:MPLX), also an MLP, yields 7.38% on a $4.306 annualized distribution. Management has committed to 12.5% distribution growth through 2027, which stacks tax-free compounding on top of a rising cash yield when held in a Roth.
Ares Capital (NASDAQ:ARCC) is a BDC yielding 9.63% on its $1.92 annualized dividend. CEO Kort Schnabel pointed to "17 years of stable or increasing regular quarterly dividends". BDC distributions are taxed as ordinary income, making the Roth wrapper the highest-value shelter available.
Blue Owl Capital (NYSE:OBDC) is a BDC yielding approximately 11% on its $1.24 annualized base distribution. Q2 adjusted net investment income of $0.34 per share covered the $0.31 base dividend, and CEO Craig Packer cited "healthy dividend coverage" with leverage at a two-year low of 1.11x.
Run the numbers on the basket at $500,000 equal weight:
Gross income: approximately $42,000 Taxable account net at 24%: approximately $31,920 Roth net: $42,000 Annual Roth advantage: $10,080 10-year advantage before reinvestment: $100,800 Bracket Multiplier: Same Portfolio, Different Tax Bill The Roth advantage scales directly with your bracket. Same $42,000 in gross ordinary distributions:
Bracket Annual Tax Net Income Roth Advantage 22% $9,240 $32,760 $9,240 24% $10,080 $31,920 $10,080 32% $13,440 $28,560 $13,440 37% $15,540 $26,460 $15,540 A 37% bracket holder loses over $5,000 more per year to federal tax than a 22% holder on the identical positions. That is before state tax.
Compounding Insight Most Investors Miss The Roth advantage compounds annually. That $10,080 gets reinvested at the portfolio yield every year for the rest of your holding period. Held flat and reinvested at the basket’s blended yield, the 10-year cumulative advantage runs materially above the simple $100,800 figure, and the 20-year figure roughly doubles again. Frame it as the permanent tax leakage you accept every year you leave these positions in a taxable account, and the reason a dividend ladder built to live off the checks without ever selling a share works so much harder inside a Roth than outside one.
Note that ARCC non-accruals ticked up to 2.4% at amortized cost and OBDC non-accruals rose to 2.8%, both from lower prior-quarter levels. Distribution coverage matters at these yields, and lower base rates continue to pressure BDC spread income.
Concrete Actions Pull your current holdings of ARCC, OBDC, or any BDC or MLP and multiply the annualized distribution by your bracket. That figure is your annual tax leakage. Do it before your next filing. Model a phased Roth conversion starting with the highest-yield ordinary-income names first (BDCs before midstream MLPs), where the tax delta per dollar is largest. Compare the one-time conversion tax on the specific dollar amount against the multi-year compounded Roth advantage at your bracket before assuming the conversion cost is too high. Contact [email protected] for any questions or corrections.
At the 24% federal marginal bracket, roughly one of every four dollars of ordinary dividend income earned in a taxable brokerage account is handed to the IRS. For income investors leaning on business development companies, midstream MLPs, and other yield-first structures that pay non-qualified distributions, that friction compounds every year the position is held outside a Roth.
The four names below sit squarely in that trade-off. Two currently yield well above 7%, two sit in the mid- to high-6% range, and every one of them changes character once wrapped inside a Roth.
Four High-Yield Names Built for Roth Placement MPLX LP (NYSE:MPLX | MPLX Price Prediction) is a midstream MLP currently yielding 7.34% on a $4.306 annualized distribution. Management reiterated on the Q2 2026 call that it expects to grow the distribution 12.5% again in 2026 and 2027, backed by a targeted 1.3 coverage ratio. MLP distributions flow through as return of capital and ordinary income rather than qualified dividends, which is exactly the profile that benefits most from Roth shelter.
Enterprise Products Partners (NYSE:EPD) is a fellow midstream MLP yielding 5.78%, with a Q2 2026 declared distribution of $0.56 per unit and record EBITDA of $2.8 billion. Same K-1, same ordinary-income treatment, same case for Roth placement.
Ares Capital (NASDAQ:ARCC) is the largest publicly traded BDC, yielding 9.7% on a $0.48 quarterly dividend. BDC distributions are taxed as ordinary income at the investor's marginal rate, which makes ARCC the highest-priority Roth candidate in this group. Management noted a 17-consecutive-year track record of stable or growing regular dividends and $988 million of spillover income supporting future payouts.
Altria Group (NYSE:MO) yields 6.42% and pays qualified dividends rather than ordinary ones. The bracket delta is smaller than a BDC or MLP, but a $4.24 annualized payout and a multi-decade growth record still generate meaningful annual tax friction outside a Roth.
How Roth Placement Reshapes the 24% Bracket Income Stream Consider a $500,000 portfolio equally split across these four names. The blended yield sits in the mid-7% range, driven higher by ARCC and MPLX and moderated by EPD and MO. Inside a Roth, every dollar of that distribution stays with the investor. Inside a taxable account, roughly a quarter of the ordinary-income portion (MPLX, EPD, ARCC) leaves each year at the 24% marginal rate, and Altria's qualified dividends face a separate long-term capital-gains schedule.
The calculator above shows the gross income stream this blended yield produces on a $500,000 book. The Roth version keeps that number intact. The taxable version loses the marginal-rate slice every single year, permanently.
Bracket Multiplier: Same Portfolio, Different Delta The Roth advantage scales directly with marginal bracket. Using the 2026 federal brackets from the IRS:
22% bracket: 22 cents of every ordinary-dividend dollar disappears in taxable, zero in Roth. 24% bracket: 24 cents lost per dollar of MPLX, EPD, and ARCC income in taxable. 32% bracket: nearly a third of every distribution siphoned off in taxable. 37% bracket: more than a third gone, on income that was already earned. The higher the bracket, the more urgent the placement decision, and the wider the Roth wrapper’s permanent income moat becomes. The quiet stretch between a last paycheck and the first RMD is often the cheapest time to move these positions into a Roth, which is the whole subject of our free Roth window guide.
Compounding Loss Most Investors Never Track The tax delta compounds annually. It is a recurring drag on capital that could otherwise be reinvested at the same high yields. Ten years of foregone reinvestment on a 24%-bracket taxable BDC position compounds into a material drag on total return. On a 20-year horizon at MPLX's 12.5% distribution growth trajectory and ARCC's 68 consecutive quarters of stable-or-rising payouts, the untaxed compounding inside a Roth can eclipse the entire initial position value.
Three Actions to Run Before Year-End If any BDC or MLP sits in a taxable account, price out the annual tax cost at your bracket before filing. That number is the permanent recurring cost of leaving the position where it is. Run the Roth conversion math specifically on ARCC and MPLX. Ordinary-income yields near 9.7% and 7.34% often justify conversion costs faster than qualified-dividend names. Model a phased conversion that prioritizes ordinary-dividend payers first (ARCC, MPLX, EPD) and qualified-dividend payers like MO last, since the bracket delta on qualified dividends is materially smaller. Contact [email protected] for any questions or corrections.
The energy sector accounts for just 3.3% of the S&P 500, or not even a tenth of the weight commanded in the index by tech stocks, but energy is punching above its weight in garnering headlines in 2026.
Undoubtedly, the war in Iran is a major catalyst behind energy stocks' attention-grabbing ways this year, but there's more to the story. Notably, the buzz around the energy patch isn't confined to the group's largest, most well-known constituents.
A big dividend yield isn't the only reason why MPLX stock is trending on Wall Street. Image source: Getty Images.
Midstream operators, including MPLX (MPLX -0.15%), are in the spotlight, too. Specific to MPLX, which holds dominant positioning in natural gas gathering and processing in the Permian Basin, the pipeline stock is starting to trend on Wall Street, and for multiple reasons at that.
MPLX is up by 4% over the past month, flirting with a 52-week high, and it recently released a solid second-quarter earnings report, so it's not surprising Wall Street is paying a bit more attention to this midstream company. Two examples: Goldman Sachs recently reiterated a "buy" rating on MPLX with a $63 price target. That was after Barclays reaffirmed an "overweight" rating on the stock and raised its price target to $63 from $59.
Of course, the pros are pros for various reasons, including the point that they don't focus on surface-level data. MPLX's 7.2% dividend yield is potentially attractive to investors of all stripes, but professionals are, quite literally, paid to dig deeper. They may have liked what they saw in MPLX's second-quarter numbers.
During that period, the midstream company returned $1.1 billion in capital to shareholders, which was easily covered by the $1.5 billion in distributable cash flow (DCF) MPLX generated. That results in a coverage ratio of 1.3x. There's room for improvement in that coverage ratio, but MPLX is pacing ahead of what the pros consider adequate dividend coverage.
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Another reason Wall Street may be cozying up to this energy stock is the clarity on spending. MPLX told investors it's upping 2026 spending plans by $500 million to $2.9 billion, adding that it "plans to invest over 90% of organic growth capital toward opportunities" to capitalize on booming demand for natural gas and natural gas liquids (NGLs) infrastructure. That's a sign that MPLX is committed to growth, not just being a high-dividend play. Additionally, the operator's expenditures are skewed toward this year and 2027, implying that 2028 could mark an inflection point, with spending declining while the share price rises.
Plenty of love on Main Street, too MPLX's aforementioned dividend yield of 7.2% is substantially better than what investors find on the S&P 500, underscoring why the stock is favored by Main Street income investors, too. A recent string of midstream distribution increases may also be contributing to retail market participants' enthusiasm for this pipeline name.
MPLX last announced a dividend hike in October 2025, but when it reported quarterly results, it reiterated a call for 12.5% payout growth this year and in 2027. That's not just growth. It's inflation-thumping dividend growth, which is meaningful because the income from basic equity indexes barely offsets high consumer costs.
Then there's a point all long-term investors can get behind with MPLX. Supported by liquefied natural gas (LNG) and data center needs, U.S. natural gas demand is expected to increase 15% through 2030, potentially stoking upside for this energy income stock.
, /PRNewswire/ -- MPLX LP (NYSE: MPLX) today announced that the company's 2025 Schedule K-3 investor tax packages reflecting items of international tax relevance are now available on its website, https://www.mplx.com. Investors may select the Investor Data link under the Investors tab or use the following link: https://www.taxpackagesupport.com/mplxlp.
A limited number of investors (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on the Schedule K-3 for their specific reporting requirements. To the extent the Schedule K-3 is applicable to unitholders' tax return filing needs, MPLX encourages them to review the information contained on the Schedule K-3 and refer to the appropriate federal laws and guidance or consult with their tax advisor.
MPLX does not plan to mail K-3 tax packages to investors. For additional information or to receive an electronic copy of the Schedule K-3 via email, unitholders may call 1-800-232-0011 (toll free).
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com.
, /PRNewswire/ -- MPLX LP (NYSE: MPLX) announced today that it has priced $2.25 billion in aggregate principal amount of unsecured senior notes in an underwritten public offering consisting of $1.25 billion aggregate principal amount of 4.700% senior notes due 2029, $500 million aggregate principal amount of 5.000% senior notes due 2032 and $500 million aggregate principal amount of 5.500% senior notes due 2036.
MPLX intends to use the net proceeds from this offering to redeem, repay or otherwise extinguish MPLX's outstanding $1.25 billion aggregate principal amount of 4.125% senior notes due March 2027 (the "2027 Notes") and intends to use the remaining net proceeds for general partnership purposes, which may include capital expenditures and working capital. This news release is not a notice of redemption with respect to the 2027 Notes.
The closing of this offering is expected to occur on August 24, 2026, subject to the satisfaction of customary closing conditions.
TD Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for this offering.
This offering is being made only by means of a prospectus and related prospectus supplement, which may be obtained for free by visiting the Securities and Exchange Commission's website at http://www.sec.gov. Alternatively, copies may be obtained by contacting the following, which are acting as representatives of the underwriters:
TD Securities (USA) LLC
1 Vanderbilt Avenue, 11th Floor
New York, New York 10017
Attn: DCM-Transaction Advisory
Toll-free: 1-855-495-9846
Goldman Sachs & Co. LLC
200 West Street
New York, New York 10282-2198
Attn: Prospectus Department
Toll-free: 1-866-471-2526
Facsimile: 212-902-9316
Email: [email protected]
J.P. Morgan Securities LLC
270 Park Avenue
New York, New York 10017
Attn: Investment Grade Syndicate Desk
Collect: 1-212-834-4533
Email: [email protected]; [email protected]
SMBC Nikko Securities America, Inc.
277 Park Avenue
New York, New York 10172
Toll-free: 1-888-868-6856
Email: [email protected]
This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.
Key Takeaways MPLX raised 2026 growth capital spending to $2.9 billion, with over 90% targeting gas and NGL infrastructure.New projects should strengthen second-half results and support mid-single-digit adjusted EBITDA growth.MPLX's 3.7X leverage and premium valuation leave less room for project delays or slower cash-flow growth. MPLX LP (MPLX - Free Report) is expanding its natural gas and natural gas liquids (NGLs) infrastructure while continuing to generate durable cash flow and increase distributions. The growth runway is visible, but so are the demands created by a larger capital program.
For investors, the trade-off is increasingly about execution. Higher leverage, rising financing costs and a valuation near the top of MPLX's historical range leave less room for project delays or slower cash-flow growth.
MPLX Growth Spending Raises the StakesMPLX raised its 2026 growth capital outlook by $500 million to $2.9 billion, mainly because it accelerated spending on Gulf Coast fractionation. More than 90% of organic growth capital is directed toward natural gas and NGL infrastructure.
The spending reflects a broader midstream push to add capacity around rising gas demand. Kinder Morgan, Inc. (KMI - Free Report) has a $10.1 billion committed growth project backlog, while The Williams Companies, Inc. (WMB - Free Report) is advancing projects such as the Northeast Supply Enhancement expansion of its Transco system. For MPLX, the larger program raises the importance of keeping construction schedules and returns on track.
MPLX Balances Growth Ambitions With Capital DisciplineMPLX’s 2026 strategy centers on mid-single-digit growth, supported by expanding integrated value chains, a larger sour gas treating platform and its substantial Marcellus footprint. The partnership also remains committed to capital returns through distribution growth and buybacks, reinforcing the durability of its cash flows. However, sustaining these returns while funding a larger project slate keeps capital discipline and financial flexibility in focus.
Image Source: Zacks Investment Research
MPLX Projects Could Lift Cash FlowSecretariat I entered service in April, while Harmon Creek III began operations in August. The BANGL pipeline expansion, Blackcomb pipeline and Titan sour gas treating expansion are expected to enter service in the fourth quarter, adding processing, takeaway and treating capacity.
These additions are expected to support a stronger second half. Management continues to target mid-single-digit adjusted EBITDA growth in 2026, with the sequencing and ramp-up of projects positioning MPLX for stronger adjusted EBITDA growth in 2027.
MPLX Leverage Narrows Financial FlexibilityMPLX ended the second quarter with about $25.64 billion of total debt and a leverage ratio of 3.7X, up from 3.1X a year earlier. Net interest and other financial costs increased to $289 million from $234 million.
Cash generation remains meaningful, with second-quarter distributable cash flow of $1.45 billion. Still, distribution coverage was 1.3X versus 1.5X a year earlier, so timely project contributions matter more as capital spending and financing costs rise.
MPLX Earnings Outlook Points to a 2027 RecoveryThe Zacks Consensus Estimate calls for MPLX’s 2026 earnings to decline 11.4% year over year to $4.27 per unit, reflecting near-term earnings pressure as capital spending remains elevated. Third-quarter earnings are projected at $1.13 per unit, down 25.7% from the year-ago period, while the fourth-quarter estimate of $1.16 implies a modest 0.9% decline. For 2027, however, earnings are expected to rebound 10.2% to $4.71 per unit, suggesting that cash-flow contributions from new projects could become more visible as the investment cycle progresses.
Image Source: Zacks Investment Research
MPLX Valuation Leaves Less Room for ErrorMPLX trades at 13.4X forward 12-month earnings, close to its five-year high of 13.4X and above its five-year median of 10.1X. That premium to its own history increases the importance of delivering the expected growth from new infrastructure.
The valuation is supported by expanding gas and NGL operations and a 7.3% dividend yield, but it also reduces the cushion if project ramps disappoint or higher financing requirements pressure financial flexibility.
MPLX Signals Favor Patience Over ChasingThe balance of visible project growth and higher capital demands supports a measured view on MPLX. The partnership has multiple assets moving into service and continues to target distribution growth, but leverage, coverage and valuation make execution increasingly important.
MPLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum Score of A is favorable, but a Value Score of C, Growth Score of D and VGM Score of D show a less supportive mix across other investment styles. The combination argues for patience rather than chasing the units after their recent gains.
MPLX LP delivered a solid Q2, with adjusted EBITDA up 5% and distributions growing 12.5%, confirming its status as a top-tier MLP. Growth is driven by robust natural gas and NGL services, with over 90% of increased capex targeting these segments and multiple projects providing multi-year visibility. Distribution coverage dipped to 1.3x, and leverage rose to 3.7x due to capex ramp-up, but the payout remains stable and is expected to keep growing.
MPLX (MPLX) remains a Strong Buy, with reliable income and visible growth supported by robust project execution and strong demand. Distribution coverage remains healthy at ~1.3x, with a 12.5% distribution growth commitment now extended through 2026 and 2027. Recent distributable cash flow softness is attributed to timing and financing of growth projects, not structural weakness, with leverage at a manageable ~3.7x.
SummaryMPLX LP secures 85%–90% of revenues through long-term, fixed-fee contracts and Minimum Volume Commitments (MVCs), providing robust downside protection against commodity volatility.Recent Q2 2026 results showed $1.1B net income, $1.8B adjusted EBITDA, and $1.5B distributable cash flow, supporting robust capital returns.MPLX is executing a $2.4B organic growth plan, expanding Delaware/Marcellus Basin processing, advancing Permian gas egress, and targeting AI/HPC opportunities with an LOI with Marathon Digital.Technical analysis signals a potential breakout above $60.66, targeting $68, with risks tied to regulatory, supply chain, and commodity price volatility. Meindert van der Haven/iStock via Getty Images
MPLX LP (MPLX) is a diversified, large-cap Master Limited Partnership (MLP) formed by refining giant Marathon Petroleum Corporation (MPC) in 2012. MPLX owns outright or has ownership interest in and
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Key Takeaways MPLX's Q2 earnings beat estimates as higher gathering and fractionation volumes lifted adjusted EBITDA by 5%.MPLX's Natural Gas and NGL Services EBITDA rose 11% as gathering and fractionation volumes increased.MPLX raised its 2026 capital spending by $500 million to $2.9B to accelerate Gulf Coast fractionation work. MPLX LP (MPLX - Free Report) reported second-quarter 2026 earnings of $1.06 per unit, up 2.9% from $1.03 a year ago. The bottom line surpassed the Zacks Consensus Estimate of $1.04 per unit by 1.9%.
Total revenues and other income increased 10.3% to $3.31 billion from $3 billion a year earlier. The top line beat the consensus estimate of $3.19 billion by 3.8%.
The strong quarterly results were driven by higher gathering and fractionation volumes. Adjusted EBITDA increased 5% to $1.78 billion.
MPLX's Income Rises Despite Higher CostsNet income attributable to MPLX increased to $1.08 billion from $1.05 billion in the year-ago quarter. Income from operations improved 6.6% to $1.38 billion, driven by higher contributions from both operating segments.
Total costs and expenses increased 13.1% to $1.93 billion from $1.71 billion recorded in the prior-year quarter. Operating expenses, including purchased product costs, increased to $1.01 billion from $821 million, while depreciation and amortization rose to $365 million from $324 million. Net interest and other financial costs increased 23.5% to $289 million.
MPLX's Logistics Business Delivers GrowthCrude Oil and Products Logistics segment adjusted EBITDA increased 2% to $1.16 billion. Higher rates across the business and increased butane blending more than offset lower crude pipeline throughput and higher operating expenses.
Total pipeline throughput declined 4% to 5.88 million barrels per day (MMBbl/d). Crude oil pipeline volumes fell 5% to 3.83 MMBbl/d from 4.01 MMBbl/d, while product pipeline volumes decreased 2% to $2.05 MMBbl/d from $2.09 MMBbl/d in the prior-year quarter.
Terminal throughput increased 2% to 3.26 MMBbl/d, and the average pipeline tariff rate edged up 1% to $1.07 per barrel.
MPLX's Gas & NGL Services Operations Gain MomentumNatural Gas and NGL Services segment adjusted EBITDA advanced 11% to $614 million. The increase reflected higher volumes, contributions from equity affiliates and acquisitions. These benefits were partly offset by the 2025 divestiture of non-core Rockies gathering and processing assets.
Gathering throughput rose 5% to 6.86 billion cubic feet per day (Bcf/d), while fractionation volumes increased 7% to 680,000 barrels per day (Bbl/d). Natural gas processed declined 2% to 9.59 Bcf/d. Excluding divested assets, gathering and processing volumes increased 15% and 5%, respectively.
MPLX’s Cash Flow Funds Capital ReturnsNet cash provided by operating activities totaled $1.70 billion compared with $1.74 billion a year ago. Distributable cash flow increased to $1.45 billion from $1.42 billion, while adjusted free cash flow totaled $668 million.
MPLX declared a distribution of $1.0765 per unit, up from 95.65 cents a year earlier, resulting in 1.3X coverage. The partnership returned more than $1.1 billion to unitholders, including $50 million through unit repurchases. Management expects distribution increases of 12.5% in 2026 and 2027.
MPLX Maintains Balance SheetThe partnership ended June with $1.03 billion in cash, $2.5 billion available under its revolving credit facility and $1.5 billion available through its intercompany loan agreement with Marathon Petroleum. Total debt was $25.64 billion, while leverage remained at 3.7X.
MPLX's Projects Support Second-Half GrowthMPLX placed the 200-million-cubic-feet-per-day (MMcf/d) Secretariat I processing plant into service in April. The partnership exited the quarter with 86% utilization across its Delaware Basin processing system. Marcellus processing utilization reached 96%, supporting record volumes across the system.
Harmon Creek III began operations in August, adding 300 MMcf/d of processing capacity and 40,000 Bbl/d of de-ethanization capacity. The BANGL pipeline expansion to 300,000 Bbl/d, Blackcomb pipeline and Titan sour gas treating expansion are expected to enter service in the fourth quarter.
MPLX's Capital Spending Outlook IncreasesThe partnership raised its 2026 capital spending outlook by $500 million to $2.9 billion. The increase primarily reflects accelerated work on its Gulf Coast fractionation project, pulling forward spending previously planned for early 2027.
More than 90% of organic growth capital is directed toward natural gas and natural gas liquids infrastructure. Management expects the project sequence to drive stronger adjusted EBITDA in the third quarter than the second quarter, followed by sequential growth in the fourth quarter. MPLX continues to target mid-single-digit adjusted EBITDA growth for 2026.
MPLX’s Zacks Rank & Key PicksMPLX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are PBF Energy Inc. (PBF - Free Report) , HF Sinclair Corporation (DINO - Free Report) and Cactus, Inc. (WHD - Free Report) . PBF sports a Zacks Rank #1 (Strong Buy), while DINO and WHD carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share.
As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.
HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39 per share.
As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.
Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share.
3 High-Yield Dividend Stocks With Real Capital Gains Potential in 2026Mplx NYSE: MPLX reported second-quarter adjusted EBITDA of $1.8 billion, up 5% from a year earlier, as higher volumes and rates across its operations more than offset the late-2025 divestiture of its Rockies assets. The partnership returned more than $1.1 billion to unitholders during the quarter and said it remains on track for mid-single-digit adjusted EBITDA growth in 2026.
President and CEO Maryann Mannen said the company expects growth to accelerate during the second half as several natural gas, natural gas liquids and pipeline projects enter service or ramp up operations. “The sequencing of projects entering service gives us confidence in a meaningful increase in EBITDA in the second half of 2026 and next year,” Mannen said.
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Processing Utilization and Volume Growth 5 High-Yield Stocks to Shield Your Portfolio From the StormMPLX placed its Secretariat I processing plant in the Delaware Basin into service in April and exited the second quarter with its Delaware Basin processing system operating at 86% utilization. The company said Harmon Creek III, another processing plant, began operations in August.
The additions increase MPLX’s total processing capacity to 8.1 billion cubic feet per day and its de-ethanization capacity to more than 800,000 barrels per day. Management said the facilities, along with related gathering and compression expansions, are designed to meet producer demand in liquids-rich regions and support longer-term throughput growth.
Marathon Petroleum Company Is Ready to Sprint HigherIn the Northeast, Marcellus processing utilization reached 96% during the quarter, supporting record system volumes, while Utica processing utilization was 73%. In the Permian Basin, sour-gas treating volumes at the Titan facility exceeded 150 million cubic feet per day for the second consecutive quarter.
Chief Financial Officer Kris Hagedorn said gathering volumes rose 15% year over year, led by production growth in the Utica, Permian and Marcellus basins. Processing volumes increased 5%, while total fractionation volumes grew 8%, primarily due to higher Marcellus production.
Crude oil and products logistics segment adjusted EBITDA increased $23 million from the prior-year quarter. Gathering and processing segment adjusted EBITDA increased $62 million year over year, or $99 million excluding the impact of the Rockies divestiture. Pipeline volumes increased 4% year over year, primarily due to Marathon Petroleum’s planned MidCon refining turnaround activity. Butane blending generated more than $20 million of additional benefit compared with the prior year, aided by commodity prices and prior investments in blending systems. Capital Spending Raised as Gulf Coast Work Advances MPLX increased its 2026 capital spending outlook by $500 million to $2.9 billion. Mannen said the increase largely reflects accelerated work on the company’s Gulf Coast fractionation project, shifting spending that had been expected in early 2027 into the second half of 2026.
The company said the first 150,000-barrel-per-day fractionator, a 400,000-barrel-per-day joint-venture LPG export terminal and an associated purity pipeline remain scheduled to begin service in 2028. A second 150,000-barrel-per-day fractionator is expected to follow in 2029.
Responding to an analyst question, Mannen said the Gulf Coast project remains on budget. She said MPLX expects the first fractionator and export dock to begin service at the same time and does not expect the fractionator to enter service ahead of the dock. Shawn Lyon, senior vice president of logistics and storage, said construction of 60,000-barrel spheres and 600,000-barrel refrigerated tanks reinforced the company’s confidence in an early-2028 startup.
Second-Half Projects Expected to Support Growth Mannen said third-quarter results should be stronger than the second quarter, and the fourth quarter should be stronger than the third, as the company brings additional assets online and ramps recently completed projects.
The BANGL NGL pipeline is currently operating at 250,000 barrels per day and is expected to expand to 300,000 barrels per day by the end of 2026. MPLX also expects the Blackcomb Natural Gas Pipeline to achieve full commercial service in the fourth quarter.
In the Delaware Basin, MPLX is expanding its sour-gas treating system to more than 400 million cubic feet per day, with service expected by the end of the fourth quarter. The company is also constructing about 100 miles of pipeline and expanding compression capacity to support the Titan expansion, according to Executive Vice President and Chief Operating Officer Greg Floerke.
Floerke said MPLX is building a connection that will move sweet gas from Titan to the Secretariat I processing plant. Management said the integration is intended to support processing volumes and add NGL supply to the BANGL system.
Distribution and Capital Allocation Outlook Mannen said MPLX has increased its quarterly distribution by 12.5% in each of the past two years and expects to grow the distribution at the same rate in 2026 and 2027. Hagedorn said the company continues to target a distribution coverage ratio of 1.3 times for both years and beyond.
Management said its existing organic project portfolio provides confidence in meeting that coverage target, without requiring acquisitions. The company said it will nevertheless continue to evaluate inorganic opportunities that fit its strategy, particularly investments connected to its natural gas, NGL and “wellhead-to-water” value chains.
When asked about its relationship with Marathon Petroleum, Mannen said MPLX sees no reason to change the current structure. She said the relationship creates value for both MPLX unitholders and Marathon Petroleum shareholders through distribution cash flows and strategic alignment.
About Mplx (NYSE:MPLX)MPLX LP NYSE: MPLX is a midstream master limited partnership that owns, operates and develops energy infrastructure primarily across the United States. The company provides a range of midstream services including the gathering, transportation, storage and distribution of crude oil, refined petroleum products, natural gas and natural gas liquids (NGLs). MPLX also operates processing and fractionation facilities and supplies logistics services that connect producers, refiners and end-use markets.
The partnership's asset base includes pipelines, storage terminals, rail and marine facilities, natural gas processing plants and NGL fractionators.
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Executing Natural Gas and NGL value chain growth strategy; Harmon Creek III processing plant beginning operations in August; progressing expansion of Permian sour gas treating capacity Second-quarter net income attributable to MPLX of $1.1 billion and net cash provided by operating activities of $1.7 billion Adjusted EBITDA attributable to MPLX of $1.8 billion and distributable cash flow of $1.5 billion, enabling the return of $1.1 billion of capital MPLX expects distribution increases of 12.5% in 2026 and 2027 MPLX LP (NYSE: MPLX) today reported second-quarter 2026 net income attributable to MPLX of $1,077 million, compared with $1,048 million for the second quarter of 2025.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1,775 million, compared with $1,690 million for the second quarter of 2025. Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 was $1,161 million, compared with $1,138 million for the second quarter of 2025. Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 was $614 million, compared with $552 million for the second quarter of 2025.
During the quarter, MPLX generated $1,702 million in net cash provided by operating activities, $1,450 million of distributable cash flow, and adjusted free cash flow of $668 million. MPLX announced a second-quarter 2026 distribution of $1.0765 per common unit, resulting in distribution coverage of 1.3x for the quarter. The leverage ratio was 3.7x at the end of the quarter.
"Our second quarter operational performance reflects the consistent progression of our strategic initiatives, as we complete and integrate growth projects across our natural gas and NGL value chains to meet growing global demand," said Maryann Mannen, MPLX chairman, president and chief executive officer. "As additional projects enter service in the second half of the year, and utilizations increase, MPLX remains positioned to deliver mid-single digit adjusted EBITDA growth."
Financial Highlights (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except per unit and ratio data)
2026
2025
2026
2025
Net income attributable to MPLX LP
$
1,077
$
1,048
$
1,989
$
2,174
Adjusted EBITDA attributable to MPLX LP(a)
1,775
1,690
3,504
3,447
Net cash provided by operating activities
1,702
1,736
3,049
2,982
Distributable cash flow attributable to MPLX LP(a)
1,450
1,420
2,858
2,906
Distribution per common unit(b)
$
1.0765
$
0.9565
$
2.1530
$
1.9130
Distribution coverage(c)
1.3x
1.5x
1.3x
1.5x
Consolidated total debt to LTM adjusted EBITDA(a)(d)
3.7x
3.1x
3.7x
3.1x
Cash paid for common unit repurchases
$
50
$
100
$
100
$
200
(a)
Non-GAAP measures. See reconciliation in the tables that follow.
(b)
Distributions declared by the board of directors of MPLX's general partner.
(c)
Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025.
(d)
Calculated using face value total debt and LTM adjusted EBITDA. Also referred to as leverage ratio. See reconciliation in the tables that follow.
Segment Results
Crude Oil and Products Logistics
Crude Oil and Products Logistics segment adjusted EBITDA for the second quarter of 2026 increased by $23 million compared to the same period in 2025. The increase was primarily driven by higher rates across the business units and increased butane blending, partially offset by lower crude pipeline throughputs and higher operating expenses.
Operating Statistics (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Total MPLX
Pipeline throughput (mbpd)
5,876
6,103
(4) %
5,789
6,017
(4) %
Average pipeline tariff rates ($ per barrel)
$
1.07
$
1.06
1 %
1.06
1.06
— %
Terminal throughput (mbpd)
3,259
3,183
2 %
3,118
3,139
(1) %
Segment adjusted EBITDA (in millions)
$
1,161
$
1,138
2 %
$
2,272
$
2,235
2 %
Natural Gas and NGL Services
Natural Gas and NGL Services segment adjusted EBITDA for the second quarter of 2026 increased by $62 million compared to the same period in 2025. The increase was driven by increased volumes including growth from equity affiliates and acquisitions, partially offset by the divestiture of non-core gathering and processing assets in 2025.
Operating Statistics (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Total MPLX
Gathering throughput (MMcf/d)
6,859
6,562
5 %
6,674
6,539
2 %
Natural gas processed (MMcf/d)
9,590
9,740
(2) %
9,498
9,760
(3) %
C2 + NGLs fractionated (mbpd)
680
634
7 %
657
647
2 %
Segment adjusted EBITDA (in millions)
$
614
$
552
11 %
$
1,232
$
1,212
2 %
Strategic Update
MPLX is increasing its 2026 growth capital spending outlook by $500 million, to $2.9 billion, primarily reflecting the accelerated execution of the Gulf Coast fractionation project to meet global demand for U.S. energy. MPLX plans to invest over 90% of organic growth capital toward opportunities to meet growing natural gas and NGL infrastructure needs. With projects concentrated in the Permian and Marcellus, two of the most prolific and competitive basins in North America, investments in these value chains reflect the partnership's confidence in the long-term fundamentals of the energy market, offer some of the most compelling investments in the midstream sector, and are expected to generate mid-teens returns.
Investment
Details
MPLX
Ownership
Expected In-
Service
Secretariat I
200 million cubic feet per day
(MMcf/d) gas processing plant
in the Delaware Basin
100 %
Placed in service
in April 2026
Harmon Creek III
300 MMcf/d gas processing plant
and 40 thousand barrel per day
(mbpd) de-ethanizer in the Marcellus
100 %
Beginning
operations in
August 2026
Bay Runner and Bay
Runner Twin Pipelines
Up to 5.3 billion cubic feet per day
(Bcf/d) of natural gas transport capacity
between Agua Dulce, Texas, and
Brownsville, Texas
30 %
Bay Runner: 3Q26
Bay Runner Twin: 2029
Titan Complex
Increasing sour gas treating capacity
from 150 MMcf/d to over 400 MMcf/d in
the Delaware Basin
100 %
4Q26
BANGL Pipeline
Expanding NGL pipeline from 250
mbpd to 300 mbpd; provides
transportation from the Permian Basin
to the Texas Gulf Coast
100 %
4Q26
Blackcomb Pipeline
2.5 Bcf/d pipeline connecting Permian
supply to Agua Dulce, Texas
34 %
4Q26;
Began
commissioning
July 2026
Traverse Pipeline
2.5 Bcf/d pipeline designed to
transport natural gas between Agua
Dulce, Texas, and Katy, Texas
34 %
2H27
Gulf Coast Fractionators
Two 150 mbpd fractionation facilities
near MPC's Galveston Bay refinery
100 %
Frac I: 2028
Frac II: 2029
Gulf Coast LPG Export
Terminal JV
400 mbpd LPG export terminal located
in the Port of Texas City, Texas
50 %
2028
Marcellus Gathering
System Expansion
Supports producer activity near
MPLX's Majorsville gas processing
complex
100 %
1H28
Eiger Express Pipeline
3.7 Bcf/d pipeline connecting Permian
supply to Katy, Texas
22 %
Mid-2028
Secretariat II
300 MMcf/d gas processing plant in
the Delaware Basin
100 %
2H28
Financial Position and Liquidity
As of June 30, 2026, MPLX had $1.0 billion in cash, $2.5 billion available on its bank revolving credit facility, and $1.5 billion available through its intercompany loan agreement with MPC. MPLX's leverage ratio was 3.7x, while the stability of cash flows supports leverage in the range of 4.0x.
The partnership repurchased $50 million of common units held by the public in the second quarter of 2026. As of June 30, 2026, MPLX had approximately $1.0 billion remaining available under its unit repurchase authorizations.
Conference Call
At 9:30 a.m. ET today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related materials, will also be available online prior to the conference call and webcast at www.mplx.com.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com.
Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager
Non-GAAP references
In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes additional non-GAAP measures to analyze our performance. This press release and supporting schedules include the non-GAAP measures adjusted EBITDA; consolidated debt to last twelve months adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); adjusted free cash flow (Adjusted FCF); and Adjusted FCF after distributions.
Adjusted EBITDA is a financial performance measure used by management, industry analysts, investors, lenders, and rating agencies to assess the financial performance and operating results of our ongoing business operations. Additionally, we believe adjusted EBITDA provides useful information to investors for trending, analyzing and benchmarking our operating results from period to period as compared to other companies that may have different financing and capital structures. We define Adjusted EBITDA as net income adjusted for: (i) provision for income taxes; (ii) net interest and other financial costs; (iii) depreciation and amortization; (iv) income/(loss) from equity method investments; (v) distributions and adjustments related to equity method investments; (vi) impairment expense; (vii) noncontrolling interests; (viii) transaction-related costs; and (ix) other adjustments, as applicable.
DCF is a financial performance and liquidity measure used by management and by the board of directors of our general partner as a key component in the determination of cash distributions paid to unitholders. We believe DCF is an important financial measure for unitholders as an indicator of cash return on investment and to evaluate whether the partnership is generating sufficient cash flow to support quarterly distributions. In addition, DCF is commonly used by the investment community because the market value of publicly traded partnerships is based, in part, on DCF and cash distributions paid to unitholders. We define DCF as Adjusted EBITDA adjusted for: (i) deferred revenue impacts; (ii) sales-type lease payments, net of income; (iii) adjusted net interest and other financial costs; (iv) net maintenance capital expenditures; (v) equity method investment capital expenditures paid out; and (vi) other adjustments as deemed necessary.
Adjusted FCF and Adjusted FCF after distributions are financial liquidity measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define Adjusted FCF as net cash provided by operating activities adjusted for: (i) net cash used in investing activities; (ii) cash contributions from MPC; and (iii) cash distributions to noncontrolling interests. We define Adjusted FCF after distributions as Adjusted FCF less base distributions to common and preferred unitholders. We believe that the presentation of Adjusted EBITDA, DCF, Adjusted FCF and Adjusted FCF after distributions provides useful information to investors in assessing our financial condition and results of operations.
Leverage ratio is a liquidity measure used by management, industry analysts, investors, lenders and rating agencies to analyze our ability to incur and service debt and fund capital expenditures.
The GAAP measures most directly comparable to Adjusted EBITDA and DCF are net income and net cash provided by operating activities while the GAAP measure most directly comparable to Adjusted FCF and Adjusted FCF after distributions is net cash provided by operating activities. These non-GAAP financial measures should not be considered alternatives to GAAP net income or net cash provided by operating activities as they have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. These non-GAAP financial measures should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because non-GAAP financial measures may be defined differently by other companies in our industry, our definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
For a reconciliation of Adjusted EBITDA, DCF, Adjusted FCF, Adjusted FCF after distributions and our leverage ratio to their most directly comparable measures calculated and presented in accordance with GAAP, see the tables below.
Forward-Looking Statements
This press release contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance ("ESG") plans and goals, including those related to greenhouse gas emissions, biodiversity, and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG plans and goals are not an indication that these statements are material to investors or required to be disclosed in our filings with the Securities Exchange Commission (SEC). In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as "advance," "anticipate," "believe," "commitment," "confidence," "continue," "could," "design," "drive," "endeavor," "estimate," "expect," "focus," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "progress," "project," "prospective," "pursue," "seek," "should," "strategy," "strive," "support," "target," "trends," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: political or regulatory developments, changes in governmental policies relating to refined petroleum products, crude oil, natural gas, natural gas liquids ("NGLs") or renewable diesel and other renewable fuels, or taxation including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; volatility in and degradation of general economic, market, industry or business conditions, including as a result of pandemics, other infectious disease outbreaks, natural hazards, extreme weather events, regional conflicts such as hostilities in the Middle East and in Ukraine, tariffs, inflation, rising interest rates or government shutdowns; the adequacy of capital resources and liquidity, including the availability of sufficient free cash flow from operations to pay or grow distributions and to fund future unit repurchases; the ability to access debt markets on commercially reasonable terms or at all; the timing and extent of changes in commodity prices and demand for crude oil, refined products, feedstocks or other hydrocarbon-based products or renewable diesel and other renewable fuels; increased pricing volatility or supply disruptions due to the U.S.-Iran conflict and market reactions thereto; changes to the expected construction costs and in service dates of planned and ongoing projects and investments, including pipeline projects and new processing units, and the ability to obtain regulatory and other approvals with respect thereto; the timing and ability to obtain necessary regulatory approvals and satisfy the other conditions necessary to consummate planned transactions within the expected timeframes if at all; the ability to realize expected returns or other benefits on anticipated or ongoing projects or planned transactions, including the recently completed acquisitions of Northwind Delaware Holdings LLC and BANGL, LLC; the inability or failure of our joint venture partners to fund their share of operations and development activities; the financing and distribution decisions of joint ventures we do not control; the availability of desirable strategic alternatives to optimize portfolio assets and the ability to obtain regulatory and other approvals with respect thereto; our ability to successfully implement our sustainable energy strategy and principles and to achieve our ESG plans and goals within the expected timeframes if at all; changes in government incentives for emission-reduction products and technologies; the outcome of research and development efforts to create future technologies necessary to achieve our ESG plans and goals; our ability to scale projects and technologies on a commercially competitive basis; changes in regional and global economic growth rates and consumer preferences, including consumer support for emission-reduction products and technology; industrial incidents or other unscheduled shutdowns affecting our machinery, pipelines, processing, fractionation and treating facilities or equipment, means of transportation, or those of our suppliers or customers; the suspension, reduction or termination of MPC's obligations under MPLX's commercial agreements; the imposition of windfall profit taxes, maximum refining margin penalties, minimum inventory requirements or refinery maintenance and turnaround supply plans on companies operating in the energy industry in California or other jurisdictions; the establishment or increase of tariffs on goods, including crude oil and other feedstocks imported into the United States, other trade protection measures or restrictions or retaliatory actions from foreign governments; compliance costs and uncertainty associated with cap and invest programs or similar arrangements or programs in California or other jurisdictions; other risk factors inherent to MPLX's industry; the impact of adverse market conditions or other similar risks to those identified herein affecting MPC; and the factors set forth under the heading "Risk Factors" and "Disclosures Regarding Forward-Looking Statements" in MPLX's and MPC's Annual Reports on Form 10-K for the year ended Dec. 31, 2025, and in other filings with the SEC.
Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.
Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.
Less: Net income attributable to noncontrolling interests
10
10
20
20
Net income attributable to MPLX LP
$
1,077
$
1,048
$
1,989
$
2,174
Per Unit Data
Net income attributable to MPLX LP per limited partner unit:
Common – basic
$
1.06
$
1.03
$
1.96
$
2.13
Common – diluted
$
1.06
$
1.03
$
1.96
$
2.13
Weighted average limited partner units outstanding:
Common units – basic
1,015
1,020
1,015
1,020
Common units – diluted
1,015
1,021
1,015
1,020
Select Financial Statistics (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions, except ratio data)
2026
2025
2026
2025
Common unit distributions declared by MPLX LP
Common units (LP) – public
$
395
$
356
$
790
$
713
Common units – MPC
697
619
1,394
1,238
Total LP distribution declared
1,092
975
2,184
1,951
Other Financial Data
Adjusted EBITDA attributable to MPLX LP(a)
1,775
1,690
3,504
3,447
DCF attributable to MPLX LP(a)
$
1,450
$
1,420
$
2,858
$
2,906
Distribution coverage(b)
1.3x
1.5x
1.3x
1.5x
Cash Flow Data
Net cash flow provided by (used in):
Operating activities
$
1,702
$
1,736
$
3,049
$
2,982
Investing activities
(1,028)
(602)
(1,819)
(1,203)
Financing activities
$
(1,149)
$
(2,282)
$
(2,336)
$
(1,912)
(a)
Non-GAAP measure. See reconciliation below.
(b)
Beginning with the three months ended March 31, 2025, distribution coverage is defined as DCF attributable to MPLX LP divided by total LP distributions, as a result of the conversion of the remaining Series A preferred units to common units in February 2025.
Financial Data (unaudited)
(In millions, except ratio data)
June 30,
2026
December 31,
2025
Cash and cash equivalents
$
1,031
$
2,137
Total assets
42,969
43,005
Total debt(a)
25,640
25,653
Total equity
$
14,252
$
14,528
Consolidated debt to LTM adjusted EBITDA(b)
3.7x
3.7x
Partnership units outstanding:
MPC-held common units
647
647
Public common units
367
368
(a)
There were no borrowings on the loan agreement with MPC as of June 30, 2026 or December 31, 2025. Presented net of unamortized debt issuance costs, unamortized discount/premium and includes long-term debt due within one year.
(b)
Calculated using face value total debt and LTM adjusted EBITDA. Face value total debt was $26,005 million as of June 30, 2026, and $26,006 million as of December 31, 2025.
Operating Statistics (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Crude Oil and Products Logistics
Pipeline throughput (mbpd)
Crude oil pipelines
3,830
4,012
(5) %
3,757
3,961
(5) %
Product pipelines
2,046
2,091
(2) %
2,032
2,056
(1) %
Total pipelines
5,876
6,103
(4) %
5,789
6,017
(4) %
Average tariff rates ($ per barrel)
Crude oil pipelines
$
1.06
$
1.06
— %
$
1.05
$
1.05
— %
Product pipelines
1.09
1.05
4 %
1.09
1.08
1 %
Total pipelines
$
1.07
$
1.06
1 %
$
1.06
$
1.06
— %
Terminal throughput (mbpd)
3,259
3,183
2 %
3,118
3,139
(1) %
Barges in operation
331
320
3 %
331
320
3 %
Towboats in operation
30
29
3 %
30
29
3 %
Natural Gas and NGL Services
Operating Statistics (unaudited) -
Consolidated(a)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Gathering throughput (MMcf/d)
Marcellus Operations
1,680
1,488
13 %
1,629
1,494
9 %
Utica Operations
—
—
— %
—
133
(100) %
Southwest Operations
1,990
1,734
15 %
1,990
1,759
13 %
Bakken Operations
162
162
— %
154
168
(8) %
Rockies Operations
—
541
(100) %
—
545
(100) %
Total gathering throughput
3,832
3,925
(2) %
3,773
4,099
(8) %
Natural gas processed (MMcf/d)
Marcellus Operations
4,570
4,312
6 %
4,511
4,318
4 %
Utica Operations(b)
—
—
— %
—
—
— %
Southwest Operations
2,013
1,821
11 %
1,993
1,850
8 %
Southern Appalachia Operations
220
205
7 %
205
196
5 %
Bakken Operations
161
162
(1) %
153
168
(9) %
Rockies Operations
—
593
(100) %
—
597
(100) %
Total natural gas processed
6,964
7,093
(2) %
6,862
7,129
(4) %
C2 + NGLs fractionated (mbpd)
Marcellus Operations
584
545
7 %
567
556
2 %
Utica Operations(b)
—
—
— %
—
—
— %
Other
24
29
(17) %
22
29
(24) %
Total C2 + NGLs fractionated
608
574
6 %
589
585
1 %
(a)
Includes operating data for entities that have been consolidated into the MPLX financial statements.
(b)
The Utica region processing and fractionation operations only include partnership-operated equity method investments and thus do not have any operating statistics from a consolidated perspective. See table below for details on Utica.
Excluding Divested Assets(a),
Natural Gas and NGL Services
Operating Statistics (unaudited) -
Consolidated(b)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Total gathering throughput (MMcf/d)
3,832
3,384
13 %
3,773
3,421
10 %
Total natural gas processed (MMcf/d)
6,964
6,500
7 %
6,862
6,532
5 %
Total C2 + NGLs fractionated (mbpd)
608
569
7 %
589
580
(1) %
(a)
Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C.
(b)
Includes operating data for entities that have been consolidated into the MPLX financial statements.
Natural Gas and NGL Services
Operating Statistics (unaudited) -
Operated(a)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Gathering throughput (MMcf/d)
Marcellus Operations
1,680
1,488
13 %
1,629
1,494
9 %
Utica Operations
3,027
2,566
18 %
2,901
2,503
16 %
Southwest Operations
1,990
1,734
15 %
1,990
1,759
13 %
Bakken Operations
162
162
— %
154
168
(8) %
Rockies Operations
—
612
(100) %
—
615
(100) %
Total gathering throughput
6,859
6,562
5 %
6,674
6,539
2 %
Natural gas processed (MMcf/d)
Marcellus Operations
6,232
6,019
4 %
6,196
5,997
3 %
Utica Operations
964
940
3 %
951
952
— %
Southwest Operations
2,013
1,821
11 %
1,993
1,850
8 %
Southern Appalachia Operations
220
205
7 %
205
196
5 %
Bakken Operations
161
162
(1) %
153
168
(9) %
Rockies Operations
—
593
(100) %
—
597
(100) %
Total natural gas processed
9,590
9,740
(2) %
9,498
9,760
(3) %
C2 + NGLs fractionated (mbpd)
Marcellus Operations
584
545
7 %
567
556
2 %
Utica Operations
72
60
20 %
68
62
10 %
Other
24
29
(17) %
22
29
(24) %
Total C2 + NGLs fractionated
680
634
7 %
657
647
2 %
(a)
Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.
Excluding Divested Assets(a),
Natural Gas and NGL Services
Operating Statistics (unaudited) -
Operated(b)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
%
Change
2026
2025
%
Change
Total gathering throughput (MMcf/d)
6,859
5,950
15 %
6,674
5,924
13 %
Total natural gas processed (MMcf/d)
9,590
9,147
5 %
9,498
9,163
4 %
Total C2 + NGLs fractionated (mbpd)
680
629
8 %
657
642
2 %
(a)
Excludes volumes associated with divested Rockies gathering and processing operations and assets contributed to Markwest EMG Jefferson Dry Gas Gathering Company, L.L.C.
(b)
Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments.
Reconciliation of Segment Adjusted EBITDA to Net Income
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Crude Oil and Products Logistics segment adjusted EBITDA attributable to MPLX LP
$
1,161
$
1,138
$
2,272
$
2,235
Natural Gas and NGL Services segment adjusted EBITDA attributable to MPLX LP
614
552
1,232
1,212
Adjusted EBITDA attributable to MPLX LP
1,775
1,690
3,504
3,447
Depreciation and amortization
(365)
(324)
(723)
(650)
Net interest and other financial costs
(289)
(234)
(580)
(463)
Income from equity method investments
180
170
362
356
Distributions/adjustments related to equity method investments
(234)
(229)
(485)
(456)
Adjusted EBITDA attributable to noncontrolling interests
11
11
22
22
Other(a)
9
(26)
(91)
(62)
Net income
$
1,087
$
1,058
$
2,009
$
2,194
(a)
Includes unrealized derivative gain/(loss), equity-based compensation, provision for income taxes and other miscellaneous items.
Reconciliation of Segment Adjusted EBITDA to Income
from Operations (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Crude Oil and Products Logistics
Segment adjusted EBITDA
$
1,161
$
1,138
2,272
2,235
Depreciation and amortization
(146)
(135)
(289)
(268)
Income from equity method investments
52
59
114
115
Distributions/adjustments related to equity method investments
(71)
(77)
(143)
(149)
Other
(18)
(17)
(39)
(34)
Natural Gas and NGL Services
Segment adjusted EBITDA
614
552
1,232
1,212
Depreciation and amortization
(219)
(189)
(434)
(382)
Income from equity method investments
128
111
248
241
Distributions/adjustments related to equity method investments
(163)
(152)
(342)
(307)
Adjusted EBITDA attributable to noncontrolling interests
11
11
22
22
Other
29
(8)
(49)
(26)
Income from operations
$
1,378
$
1,293
$
2,592
$
2,659
Reconciliation of Adjusted EBITDA Attributable to MPLX
LP and DCF Attributable to MPLX LP from Net Income
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Net income
$
1,087
$
1,058
$
2,009
$
2,194
Provision for income taxes
2
1
3
2
Net interest and other financial costs
289
234
580
463
Income from operations
1,378
1,293
2,592
2,659
Depreciation and amortization
365
324
723
650
Income from equity method investments
(180)
(170)
(362)
(356)
Distributions/adjustments related to equity method investments
234
229
485
456
Other
(11)
25
88
60
Adjusted EBITDA
1,786
1,701
3,526
3,469
Adjusted EBITDA attributable to noncontrolling interests
(11)
(11)
(22)
(22)
Adjusted EBITDA attributable to MPLX LP
1,775
1,690
3,504
3,447
Deferred revenue impacts
27
(10)
26
(28)
Sales-type lease payments, net of income
8
14
21
27
Adjusted net interest and other financial costs(a)
(281)
(225)
(565)
(444)
Maintenance capital expenditures, net of reimbursements
(68)
(45)
(121)
(80)
Equity method investment maintenance capital expenditures paid out
(5)
(3)
(9)
(8)
Other
(6)
(1)
2
(8)
DCF attributable to MPLX LP
$
1,450
$
1,420
$
2,858
$
2,906
(a)
Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs.
Reconciliation of Net Income to Last Twelve Month (LTM)
adjusted EBITDA (unaudited)
Last Twelve Months
June 30,
December 31,
(In millions)
2026
2025
2025
LTM Net income
$
4,767
$
4,350
$
4,952
Provision for income taxes
9
9
8
Net interest and other financial costs
1,100
918
983
LTM income from operations
5,876
5,277
5,943
Depreciation and amortization
1,424
1,296
1,351
Income from equity method investments
(703)
(676)
(697)
Distributions/adjustments related to equity method investments
991
966
962
Gain on equity method investments
(484)
—
(484)
Gain on sale of assets
(159)
—
(159)
Transaction-related costs(a)
33
—
33
Other
140
104
112
LTM Adjusted EBITDA
7,118
6,967
7,061
Adjusted EBITDA attributable to noncontrolling interests
(44)
(44)
(44)
LTM Adjusted EBITDA attributable to MPLX LP
7,074
6,923
7,017
Consolidated total debt(b)
$
26,005
$
21,507
$
26,006
Consolidated total debt to LTM adjusted EBITDA(c)
3.7x
3.1x
3.7x
(a)
Transaction-related costs include costs associated with the acquisition of Northwind Midstream, acquisition of the remaining interest in BANGL, LLC and the divestiture of the Rockies gathering and processing operations.
(b)
Consolidated total debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated total debt includes long-term debt due within one year and outstanding borrowings, if any, under the loan agreement with MPC.
(c)
Also referred to as our leverage ratio.
Reconciliation of Adjusted EBITDA Attributable to MPLX
LP and DCF Attributable to MPLX LP from Net Cash
Provided by Operating Activities (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Net cash provided by operating activities
$
1,702
$
1,736
$
3,049
$
2,982
Changes in working capital items
(261)
(313)
(190)
(83)
All other, net
12
(6)
1
(4)
Loss on extinguishment of debt
—
3
—
3
Adjusted net interest and other financial costs(a)
281
225
565
444
Other adjustments related to equity method investments
18
22
32
61
Other
34
34
69
66
Adjusted EBITDA
1,786
1,701
3,526
3,469
Adjusted EBITDA attributable to noncontrolling interests
(11)
(11)
(22)
(22)
Adjusted EBITDA attributable to MPLX LP
1,775
1,690
3,504
3,447
Deferred revenue impacts
27
(10)
26
(28)
Sales-type lease payments, net of income
8
14
21
27
Adjusted net interest and other financial costs(a)
(281)
(225)
(565)
(444)
Maintenance capital expenditures, net of reimbursements
(68)
(45)
(121)
(80)
Equity method investment maintenance capital expenditures paid out
(5)
(3)
(9)
(8)
Other
(6)
(1)
2
(8)
DCF attributable to MPLX LP
$
1,450
$
1,420
$
2,858
$
2,906
(a)
Represents Net interest and other financial costs, excluding gain/loss on extinguishment of debt and amortization of deferred financing costs.
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted Free Cash Flow and Adjusted Free
Cash Flow after Distributions (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Net cash provided by operating activities(a)
$
1,702
$
1,736
$
3,049
$
2,982
Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow
Net cash used in investing activities
(1,028)
(602)
(1,819)
(1,203)
Contributions from MPC
5
7
9
14
Distributions to noncontrolling interests
(11)
(11)
(22)
(22)
Adjusted free cash flow
668
1,130
1,217
1,771
Distributions paid to common and preferred unitholders
(1,092)
(976)
(2,185)
(1,954)
Adjusted free cash flow after distributions
$
(424)
$
154
$
(968)
$
(183)
(a)
The three months ended June 30, 2026 and June 30, 2025 include working capital draws of $261 million and $313 million, respectively. The six months ended June 30, 2026 and June 30, 2025 include working capital draws of $190 million and $83 million, respectively.
Capital Expenditures (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(In millions)
2026
2025
2026
2025
Capital Expenditures:
Growth capital expenditures
$
746
$
286
$
1,354
$
506
Growth capital reimbursements
(49)
(37)
(84)
(64)
Investments in unconsolidated affiliates(a)
202
203
439
322
Return of capital(b)
—
(39)
—
(39)
Capitalized interest
(25)
(7)
(44)
(12)
Total growth capital expenditures(c)
874
406
1,665
713
Maintenance capital expenditures
73
55
130
103
Maintenance capital reimbursements
(5)
(10)
(9)
(23)
Capitalized interest
(1)
(1)
(2)
(2)
Total maintenance capital expenditures
67
44
119
78
Total growth and maintenance capital expenditures
941
450
1,784
791
Investments in unconsolidated affiliates(a)
(202)
(203)
(439)
(322)
Return of capital(b)
—
39
—
39
Growth and maintenance capital reimbursements(d)
54
47
93
87
(Increase)/Decrease in capital accruals
6
(40)
(84)
(41)
Capitalized interest
26
8
46
14
Additions to property, plant and equipment
$
825
$
301
$
1,400
$
568
(a)
Investments in unconsolidated affiliates and additions to property, plant and equipment are shown as separate lines within investing activities in the Consolidated Statements of Cash Flows.
(b)
Return of capital for the six months ended June 30, 2025 excludes a $21 million special distribution received in exchange for the contribution of assets to a joint venture.
(c)
Total growth capital expenditures for the six months ended June 30, 2025 excludes acquisitions of $235 million, net of cash acquired.
(d)
Growth capital reimbursements are generally included in changes in deferred revenue within operating activities in the Consolidated Statements of Cash Flows. Maintenance capital reimbursements are included in the Contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows.
Wall Street analysts forecast that MPLX LP (MPLX - Free Report) will report quarterly earnings of $1.05 per share in its upcoming release, pointing to a year-over-year increase of 1.9%. It is anticipated that revenues will amount to $3.19 billion, exhibiting an increase of 6.1% compared to the year-ago quarter.
The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some MPLX LP metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Pipeline throughput - Crude oil pipelines' will reach 3,827.44 thousands of barrels of oil per day. The estimate compares to the year-ago value of 4,012.00 thousands of barrels of oil per day.
Analysts' assessment points toward 'Natural Gas Processed - Southwest Operations' reaching . The estimate compares to the year-ago value of .
The combined assessment of analysts suggests that 'Pipeline throughput - Total pipelines' will likely reach 5,897.59 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 6,103.00 thousands of barrels of oil per day.
Analysts forecast 'Gathering throughput - Southwest Operations' to reach . Compared to the current estimate, the company reported in the same quarter of the previous year.
The consensus among analysts is that 'Pipeline throughput - Product pipelines' will reach 2,070.15 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 2,091.00 thousands of barrels of oil per day.
Based on the collective assessment of analysts, 'Adjusted EBITDA- Natural Gas and NGL Services' should arrive at $593.21 million. The estimate is in contrast to the year-ago figure of $552.00 million.
Analysts expect 'Adjusted EBITDA- Crude Oil and Products Logistics' to come in at $1.16 billion. Compared to the current estimate, the company reported $1.14 billion in the same quarter of the previous year.
View all Key Company Metrics for MPLX LP here>>>
Over the past month, shares of MPLX LP have returned +3.3% versus the Zacks S&P 500 composite's -1.5% change. Currently, MPLX carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
MPLX offers a 7.3% yield, robust fee-based cash flows, and is well positioned for continued growth, especially with Permian Basin expansion projects. I expect strong Q2 results, driven by volume recovery, non-repetition of Q1 mark-to-market losses, and ongoing network expansion supporting future cash flow growth. Management targets 12.5% distribution growth over two years, with coverage above 1.3x and potential for long-term distribution growth of 7–8% through 2030.
In the latest trading session, MPLX LP (MPLX - Free Report) closed at $59.20, marking a +1.44% move from the previous day. This move outpaced the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the company had gained 3.81% over the past month, lagging the Oils-Energy sector's gain of 5.56% and outpacing the S&P 500's gain of 1.7%.
The investment community will be closely monitoring the performance of MPLX LP in its forthcoming earnings report. The company is scheduled to release its earnings on August 4, 2026. It is anticipated that the company will report an EPS of $1.05, marking a 1.94% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.19 billion, up 6.11% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.19 per share and a revenue of $12.82 billion, demonstrating changes of -13.07% and -1.4%, respectively, from the preceding year.
Any recent changes to analyst estimates for MPLX LP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.66% lower. MPLX LP currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, MPLX LP is currently exchanging hands at a Forward P/E ratio of 13.92. This signifies a discount in comparison to the average Forward P/E of 19.86 for its industry.
It's also important to note that MPLX currently trades at a PEG ratio of 5.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Production and Pipelines stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MPLX in the coming trading sessions, be sure to utilize Zacks.com.
, /PRNewswire/ -- The board of directors of the general partner of MPLX LP (NYSE: MPLX) has declared a quarterly cash distribution of $1.0765 per common unit for the second quarter of 2026, or $4.31 on an annualized basis. The distribution will be paid on Aug. 14, 2026, to common unitholders of record as of Aug. 7, 2026.
Qualified Tax Notice
Concurrent with this announcement we are providing qualified notice to brokers and nominees that hold MPLX units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of the Partnership's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, the Partnership's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees, and not MPLX, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of non-U.S. investors.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.mplx.com.
Midstream operators have quietly become one of the most compelling income stories of 2026. Natural gas demand tied to LNG exports, data-center power buildouts, and Permian Basin production growth is filling long-term contracts, and the cash is flowing back to shareholders through rising dividends and unit distributions.
Here are three U.S.-listed midstream names where the payout does real work while the growth story matures.
ONEOK (OKE) ONEOK (NYSE:OKE | OKE Price Prediction) is a C-corp (no K-1), which matters for investors who want midstream exposure without partnership tax complications. Shares closed at $91.75 on July 22, up 23.42% year to date and 73.28% over the past five years. In January, ONEOK raised its quarterly dividend 4% to $1.07 per share, or $4.28 annualized.
The bull case is scale. The EnLink and Medallion acquisitions delivered $475 million in cumulative synergies through Q3 2025, with another ~$150 million in incremental synergies expected in 2026. Roughly 90% of 2025 earnings were fee-based, insulating cash flows from commodity swings. Q4 2025 revenue of $9.065 billion beat consensus by 10.28%, and management guided 2026 adjusted EBITDA to $7.9 billion to $8.3 billion. CEO Pierce H. Norton II said “ONEOK delivered another year of double-digit earnings growth in 2025.” Composite prediction sentiment sits bullish at 68.03.
Risk: 2026 guidance assumes WTI at $55 to $60 per barrel, well below the recent $71.87 level. That is a tailwind today, but a reversion to the low end plus NGL price softness would compress producer activity and volumes.
Kinder Morgan (KMI) Kinder Morgan (NYSE:KMI) is the other C-corp in the group (no K-1). Shares closed at $32.49 on July 22, up 17.25% year to date and more than 87% over the past five years. The Q1 2026 dividend was 29 cents per share, with 2026 annualized guidance of $1.19 per share, a 2% increase.
Q1 2026 was a beat across the board: EPS of 48 cents vs. the 39-cent consensus, revenue of $4.83 billion, adjusted EBITDA up 18% year over year and free cash flow up 73%. The project backlog now sits at $10.1 billion, with roughly 92% tied to natural gas and 60% supporting power generation and local distribution companies. Management notes KMI is positioned to serve about 70% of future power demand from data centers under development. Moody’s upgrade to Baa1 completes the trifecta of BBB+ equivalent ratings. CEO Kim Dang said “Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times.”
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Risk: Q1 got a lift from winter storm Fern, which will not repeat. Refined products volumes fell 2% and crude/condensate 12%, and large-project permitting remains a wild card.
MPLX LP (MPLX) MPLX LP (NYSE:MPLX) is the highest-yielding name in the group and the one caveat for tax-sensitive readers: MPLX is a master limited partnership and issues a Schedule K-1, not a 1099. Units closed at $56.61 on July 22, up 5.09% year to date and 102.47% over five years. The trailing distribution yield sits at 7.61%.
The Q1 2026 distribution of $1.0765 per unit represented 12.5% year-over-year growth, and management reaffirmed that pace through 2027. CEO Maryann Mannen said “Cash flow from this growth will allow us to reinvest in the business, return capital to unitholders, and is expected to support 12.5% annual distribution growth for two more years.” A $2.4 billion organic growth capex program is targeting Permian and Marcellus assets, with major projects including Harmon Creek III in Q3 2026, BANGL expansion in Q4 2026, and the Blackcomb Pipeline in Q4 2026. Barclays reiterated a Buy rating after the report. Units trade at just 12x forward earnings.
Risk: Q1 missed on both lines, with EPU of 90 cents vs. the $1.0795 consensus. Interest expense rose to $291 million from $229 million as acquisition debt hits the P&L, leverage climbed to 3.7x, and crude pipeline throughputs fell 6% year over year. Concentration risk with Marathon Petroleum as the primary customer and general partner remains a structural feature. Sentiment currently reads neutral at 56.74.
What to Watch Next The EIA forecasts Henry Hub averaging $3.50/MMBtu in 2026, and LNG exports rising to 17.0 Bcf/d this year and 18.2 Bcf/d in 2027. That backdrop supports throughput assumptions for all three. For tax-sensitive investors, the two C-corps avoid the K-1 filing entirely, while MPLX’s structure comes with a K-1 in exchange for the higher current payout and 12.5% distribution growth runway. Either way, the checks are landing while the growth pipeline plays out.
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The choice between Alerian MLP ETF (AMLP +0.20%) and First Trust North American Energy Infrastructure Fund (EMLP +0.45%) likely hinges on whether an investor prioritizes concentrated midstream exposure and high yield or a diversified utilities-heavy infrastructure mix.
Energy infrastructure assets—ranging from natural gas pipelines to electric transmission lines—serve as the "toll roads" of the economy, often providing steady cash flows that appeal to income-seeking investors. Both funds target this critical sector but approach the asset class with different philosophies, leading to distinct risk-return profiles.
Snapshot (cost & size)MetricEMLPAMLPIssuerFirst TrustALPS FundsShare price$44.64 (as of 2026-07-22)$54.82 (as of 2026-07-22)Expense ratio0.95%1.01%1-yr return (as of 2026-07-15)22.34%22.15%Dividend yield2.79%7.76%Beta0.560.51AUM$4.1 billion$12.5 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 22.
AMLP is slightly more expensive with a 1.01% expense ratio compared to 0.95% for EMLP. However, the Alerian fund offers a significantly higher payout, with a yield gap of nearly five percentage points over the First Trust fund.
Performance & risk comparisonMetricEMLPAMLPMax drawdown (5 yr)(14.60%)(20.90%)Growth of $1,000 over 5 years (total return)$2,149$2,357What's insideAlerian MLP ETF concentrates on the energy sector, which accounts for all of its portfolio, split 96% in energy stocks and 2% in utilities. Its largest positions include Sunoco LP (SUN -1.79%) at 13.6%, Energy Transfer LP (ET +0.24%) at 13.3%, and MPLX MP (MPLX +1.59%) at 13%. It holds 14 positions, plus some cash. Launched in 201, the fund has paid $4.02 per share over the trailing 12 months, which on its recent $54.82 share price works out to a 7.76% yield.
First Trust North American Energy Infrastructure Fund provides broader exposure, with 47% in utilities and 47% in energy, plus 5% in industrials. Its largest positions include Energy Transfer LP at 7.3%, Enterprise Products Partners L.P. (EPD -0.17%) at 7%, and Treasury bills through an institutional account with Morgan Stanley (MS -1.46%), essentially a cash position. It holds 65 positions. Launched in 2012, the fund has paid ~$1.21 per share over the trailing 12 months, which on its recent $44.64 share price works out to a 2.79% yield. It also employs an ESG screen as part of its investment process.
Which fund is the better buy?MLPs — master limited partnerships — are a common structure for midstream oil and gas businesses. The structure means that MLPs don’t pay taxes, instead handing the tax bill to investors who receive distributions. Investing directly means handling K-1 forms for each MLP, which is a time-consuming and sometimes confusing tax-time hassle.
These two ETFs simplify investing in MLPs by handling the accounting and sending shareholders a single 1099 for tax filing. It’s simpler for sure. The expense ratios for each include an allowance for the ETF’s estimated tax liability, which it will incur in the future because it will not pass along the full tax liability to ETF holders. That’s a drag on returns, but you know that going in, and it’s reflected in historical performance for both funds. Using the Alerian ETF as an example, the future tax liability expense is currently 0.17% of the fund’s 1.01% expense ratio. That is likely to grow over time as the fund collects more distributions and tax liability.
So how to differentiate between these ETFs? The First Trust ETF, EMLP, takes a more concentrated approach to investing in midstream assets, with just 14 equities, which means 99.9% of its holdings are in its top 10 stocks, compared with 47% for AMLP.
But a concentrated approach does not necessarily mean a bad one. Witness EMLP’s much lesser maximum drawdown compared to AMLP. That shows shrewd portfolio management by the index and the fund managers. That shows itself in the performance, when EMLP beats AMLP in most time frames.
EMLP has returned 21%, 16.1%, and 9.9% over the 3-, 5-, and 10-year look-backs. By comparison, AMLP returned an annualized 18.9% in the 3-year and 6.4% in the 10-year to trail EMLP in those time frames. However, AMLP did better than its competitor in the 5-year time frame, with a return of 16.3% annually.
For investors looking for a midstream energy play, EMLP is the better buy.
For more guidance on ETF investing, check out the full guide at this link.
MPLX LP (MPLX - Free Report) closed the most recent trading day at $56.49, moving -1.12% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
The stock of company has risen by 0.4% in the past month, lagging the Oils-Energy sector's gain of 4.15% and overreaching the S&P 500's loss of 0.63%.
Investors will be eagerly watching for the performance of MPLX LP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. The company is expected to report EPS of $1.07, up 3.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.26 billion, up 8.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.21 per share and revenue of $13.09 billion, indicating changes of -12.66% and +0.71%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for MPLX LP. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. MPLX LP is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MPLX LP's current valuation metrics, including its Forward P/E ratio of 13.57. This represents a discount compared to its industry average Forward P/E of 20.1.
Meanwhile, MPLX's PEG ratio is currently 5.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Oil and Gas - Production and Pipelines industry had an average PEG ratio of 1.81.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 216, positioning it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Pipeline partnerships get filed under “boring” for a reason. They collect tolls on hydrocarbons and mail out K-1s at tax time. So it is genuinely strange that MPLX LP (NYSE:MPLX | MPLX Price Prediction) has returned 225% over the past five years with distributions reinvested, versus about 97% for the Invesco QQQ Trust (NASDAQ:QQQ). If you are deciding where MPLX belongs in a portfolio, that gap is both the argument for owning it and, if you squint, the warning label.
What You Are Actually Buying MPLX is a midstream master limited partnership owning pipelines, gathering systems, processing plants, and export terminals anchored in the Permian and Marcellus basins, majority-owned by Marathon Petroleum, which holds about 64% of the units. Cash flows are largely fee-based, driven by the volume of hydrocarbons moving through the system rather than the price of the barrel itself. David Heppner, MPLX’s SVP of Natural Gas and NGLs, told analysts on the Q1 call, “Generally, MPLX is a fee-based business, and we’re not taking on the commodity risks within the natural gas markets in the U.S. Gulf Coast.”
That distinction matters. Drillers get hammered when crude breaks. Refiners get squeezed when cracks compress. MPLX gets paid when molecules move, and molecules keep moving even in ugly commodity tapes. The structural steadiness funds a $1.08 quarterly distribution, an annualized $4.31 per unit, working out to a yield of roughly 7.4% on a unit trading near $57. Management has publicly committed to 12.5% annual distribution growth through 2027, with CEO Maryann Mannen adding a 1.3x distribution coverage floor as the guardrail.
Does The Math Actually Work That 225% five-year return is real, and cyclically flattered. MPLX started the five-year window in July 2021 near $18, still in the shadow of the 2020 energy collapse. Buying midstream when the sector was hated and holding through a fee-based cash flow recovery plus two consecutive 12.5% distribution hikes is roughly the ideal setup for an MLP. QQQ, meanwhile, was already trading at $357 in mid-2021, at the tail end of its pandemic-era melt-up.
Zoom out to ten years, and the picture flips. MPLX returned 323% versus QQQ’s 527%. The real lesson is that midstream is cyclical enough that entry point does a lot of the work, and the past five years handed MPLX holders a very good one.
The Tradeoffs You Sign Up For Owning an MLP comes with real friction. The K-1 tax form arrives late, complicates state filings, and can generate unrelated business taxable income if the units are held in an IRA above the $1,000 threshold. Holding MPLX in a Roth to shelter a 7% yield can feel clever until your custodian sends a tax bill. Concentration risk is also baked in: Marathon Petroleum is both majority owner and MPLX’s largest customer, so the partnership’s fortunes track a single refiner’s turnaround schedule. Q1 2026 crude pipeline throughput fell 4% year over year largely for that reason.
Leverage has also drifted higher. Debt-to-EBITDA sits at 3.7x, up from 3.1x as management funded the $2.38 billion Northwind deal and other bolt-ons, pushing quarterly interest expense to $291 million from $229 million a year earlier. The 4.0x ceiling gives running room, though not much.
Who This Fits MPLX belongs in a taxable account, owned by an investor who wants a real 7%-plus distribution, a management team publicly committed to double-digit distribution growth for the next two years, and who accepts they are buying a levered energy infrastructure toll operator. Investors chasing the last five years of price appreciation inside a tax-deferred account may prefer the Alerian MLP ETF (NYSEARCA:AMLP), which delivers similar exposure via a 1099 and skips the K-1 mess. Anyone who thinks a 225% run means MPLX has stopped being cyclical should reread the ten-year chart.
Contact [email protected] for any questions or corrections.
MPLX LP (MPLX - Free Report) closed the most recent trading day at $56.51, moving -1.22% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
Coming into today, shares of the company had gained 2.77% in the past month. In that same time, the Oils-Energy sector lost 1.55%, while the S&P 500 gained 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of MPLX LP in its upcoming earnings disclosure. The company's earnings report is set to go public on August 4, 2026. On that day, MPLX LP is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 4.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.26 billion, up 8.52% from the year-ago period.
MPLX's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $13.09 billion. These results would represent year-over-year changes of -12.45% and +0.71%, respectively.
Any recent changes to analyst estimates for MPLX LP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, MPLX LP holds a Zacks Rank of #4 (Sell).
In terms of valuation, MPLX LP is presently being traded at a Forward P/E ratio of 13.56. Its industry sports an average Forward P/E of 18.85, so one might conclude that MPLX LP is trading at a discount comparatively.
One should further note that MPLX currently holds a PEG ratio of 5.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Oil and Gas - Production and Pipelines industry held an average PEG ratio of 1.88.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 207, finds itself in the bottom 16% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
July's GVAS Dogs list highlights ten fair-priced, high-yield large-cap stocks, including IRSA Inversiones, Weibo, Verizon, and AT&T, as ideal buys. Analyst targets project average net gains of 40.39% for the top ten GVAS stocks by July 2027, with risk profiles generally below market volatility. The dividend dogcatcher strategy favors stocks whose $1K dividend income exceeds share price, with 36 of 54 GVAS stocks meeting this ideal condition.
SummaryThis article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms.We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks.In addition to the primary list that yields 4.1%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.Looking for a portfolio of ideas like this one? Members of High Income DIY Portfolios get exclusive access to our subscriber-only portfolios. Learn More » Olivier Le Moal/iStock via Getty Images
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Author's Note: This is our monthly series on Dividend Stocks, usually published in the first week of every month. We scan the universe of roughly 7,500 stocks listed and traded on U.S. exchanges and use our
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Key Takeaways Kinder Morgan earns mostly from take-or-pay contracts across 78,000 miles of pipelines.MPLX generates stable cash flows from long-term shipper contracts and fee-based gathering systems.Williams operates more than 30,000 pipeline miles linking U.S. basins to key natural gas markets. The outlook for the U.S.-Iran conflict remains uncertain after the recent U.S. strikes, with President Donald Trump saying it is unclear whether the situation will stabilize or escalate further. As a result, uncertainty persists, and the oil and energy markets are likely to remain volatile.
Renewed tensions, with the United States and Iran having already exchanged intense attacks, could disrupt oil flows through the Strait of Hormuz. At the same time, inflation and broader economic concerns may weigh on global oil demand.
Therefore, the near-term direction of West Texas Intermediate crude oil prices, currently trading below the $75-per-barrel mark, remains uncertain, creating volatility across the energy sector. However, not all stocks are affected. Three midstream players like Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) are well-poised to gain. Let's delve deeper.
Resilient Business Model of Midstream BusinessStocks in the midstream space have lower exposure to volatility in commodity prices than oil and gas producers. This is because midstream players generate stable fee-based revenues since the transportation and storage assets are being booked by shippers for the long term. Hence, their business model is relatively low-risk, which indicates considerably less exposure to oil and gas prices and volume risks.
3 Pipeline Stocks to Keep an Eye on: KMI, MPLX & WMBKinder Morgan: With its operating interests in oil and gas pipeline networks spread across 78,000 miles, KMI is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
The midstream energy major, carrying a Zacks Rank #3 (Hold), is likely to grow on the back of its business model, which is relatively resilient to volume and commodity price risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MPLX: MPLX’s midstream business comprises transporting crude oil and refined products. The #3 Ranked partnership generates stable cash flows from its long-term contracts with the shippers. Its crude oil and natural gas gathering systems also generate stable fee-based revenues.
The Williams Companies: The company is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The Williams Companies, with a Zacks Rank of 3, connects premium basins in the United States to the key market. WMB’s assets can meet a considerable proportion of the nation’s natural gas consumption, which is utilized for heating purposes and clean-energy generation.
The energy sector is ripe with both high-dividend stocks and consistent payout growers. To the delight of income-hungry investors, some stocks fit both bills.
A fine place to locate high-yield dividend growers in the energy patch is the midstream space, home to master limited partnerships (MLPs) and pipeline stocks. The midstream is littered with well-known income powerhouses, including Enbridge and Energy Transfer, among others, but some less heralded names are also deserving of investors' attention. Enter MPLX LP (MPLX 0.33%).
This pipeline stock could provide years of comfort to income investors. Image source: Getty Images.
For those not familiar with this pipeline operator, it was spun off from Marathon Petroleum in 2012 and continues to manage Marathon's pipeline assets. Investors evaluating MPLX need to account for the Marathon relationship because it is, in a word, additive. It's rooted in long-term contracts driving highly visible cash flow, which are vital when assessing this energy stock and its 7.3% dividend yield.
The Marathon partnership is important and is one ingredient in the MPLX dividend recipe. Still, there's much more to like about MPLX, and those other ingredients indicate this could be a durable dividend stock for long-term investors.
Deal-making hones focus Not all energy stocks benefit from deal-making, but MPLX is a prime example of a company that knows how to execute on that front. Last year, this midstream outfit made three purchases while parting ways with its Rocky Mountain business. That slims the company's focus (in a good way) to the Marcellus and Permian shale regions.
Investors approaching MPLX with a long-term perspective may find those areas of emphasis appealing for several reasons. Acquisitions that deepen MPLX's Permian footprint enable the energy company to strengthen its drill-to-Gulf Coast proposition while fortifying its natural gas liquids (NGLs) exposure.
Long-term investors shouldn't gloss over MPLX's place in the NGL ecosystem. From this year through 2035, the NGL market is expected to nearly double, growing at a compound annual growth rate of 7.1%. North America is the largest NGL market in the world, and liquefied natural gas (LNG) exports are ramping up, and they are at the top of the White House's America energy independence agenda. So while MPLX isn't a 100% pure-play liquefied natural gas stock, its angles on that corner of the energy space may be contributors to long-term share price appreciation.
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There's also an artificial intelligence (AI) angle here. Yes, these days it sure feels as though many non-tech companies have "AI hooks," but in MPLX's case, the energy firm is AI-relevant. The reasoning is simple. It's Marcellus, and Permian footprints are favorable in the data center expansion scenario because natural gas is abundant and cost-effective. That's exactly the type of energy data centers crave.
More gas in this dividend's tank Seasoned energy investors know that dividends are one of the primary reasons to consider pipeline stocks, but it's not just about whether an operator pays today. It's about what they can deliver next year and for years to come.
MPLX answers the payout growth bell with ease. The 12.5% dividend hike announced by the company last October raised the annual distribution to $4.31 per share, meaning it has grown nearly 10 times in just over 11 years. The company is targeting 12.5% distribution growth through 2027, implying a dividend primed to compound.
Skeptical investors may be apt to think MPLX's dividend outlook sounds too good to be true. While some skepticism is warranted in investing, there's good news with MPLX: Its dividend doesn't burden it. It has a 1.8 debt-to-equity ratio, and its $5 billion in liquidity can fund almost two years of spending based on current rates. In the first quarter, MPLX generated $549 million in free cash flow, leading to distribution coverage of 1.3 times. So the dividend is safe with a solid foundation for long-term growth.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Enterprise Products Partners and MPLX LP are leading blue-chip energy infrastructure companies. Both have high yields, strong balance sheets, and impressive distribution track records. I compare them side by side and share which is the better option for which investor.
Key Takeaways Oil prices are falling as Strait of Hormuz flows recover, but midstream stocks face less exposure.KMI gets most earnings from take-or-pay contracts across its 78,000-mile pipeline network.MPLX and Williams rely on long-term contracts, fee-based revenues and major energy infrastructure. The oil-energy sector remains in the spotlight after the United States and Iran reached an interim deal last week. Media reports suggest that oil flows through the Strait of Hormuz are recovering, with shipping activity picking up again. Eventually, oil prices are declining significantly, altering the business landscape of energy companies.
Notably, the West Texas Intermediate (“WTI”) oil is currently hovering around $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year. This reflects the heightened volatility in commodity prices that is affecting the energy sector. However, not all stocks are being affected. Three midstream players like Kinder Morgan, Inc. (KMI - Free Report) , MPLX LP (MPLX - Free Report) and The Williams Companies, Inc. (WMB - Free Report) are now well-poised to gain. Let's delve deeper.
Midstream: A Resilient Business ModelStocks in the midstream space have lower exposure to volatility in commodity prices than oil and gas producers. This is because midstream players generate stable fee-based revenues since the transportation and storage assets are being booked by shippers for the long term. Hence, their business model is relatively low-risk, which indicates considerably less exposure to oil and gas prices and volume risks.
3 Pipeline Stocks to Keep an Eye On: KMI, MPLX & WMBKinder Morgan: With its operating interests in oil and gas pipeline networks spread across 78,000 miles, KMI is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
The midstream energy major, carrying a Zacks Rank #3 (Hold), is likely to grow on the back of its business model, which is relatively resilient to volume and commodity price risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MPLX: MPLX’s midstream business comprises transporting crude oil and refined products. The #3 Ranked partnership generates stable cash flows from its long-term contracts with the shippers. Its crude oil and natural gas gathering systems also generate stable fee-based revenues.
The Williams Companies: The company is well-poised to capitalize on the mounting demand for clean energy since it is engaged in transporting, storing, gathering and processing natural gas and natural gas liquids.
With its pipeline networks spread across more than 30,000 miles, The Williams Companies, with a Zacks Rank of 3, connects premium basins in the United States to the key market. WMB’s assets can meet a considerable proportion of the nation’s natural gas consumption, which is utilized for heating purposes and clean-energy generation.
MPLX LP (MPLX - Free Report) ended the recent trading session at $57.68, demonstrating a +1.37% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.44%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 2.22%.
The stock of company has risen by 0.76% in the past month, leading the Oils-Energy sector's loss of 7.14% and the S&P 500's gain of 0.08%.
Investors will be eagerly watching for the performance of MPLX LP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. The company is forecasted to report an EPS of $1.08, showcasing a 4.85% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.26 billion, up 8.52% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.22 per share and revenue of $13.09 billion, indicating changes of -12.45% and +0.71%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for MPLX LP. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.12% decrease. As of now, MPLX LP holds a Zacks Rank of #3 (Hold).
In terms of valuation, MPLX LP is currently trading at a Forward P/E ratio of 13.48. This represents a discount compared to its industry average Forward P/E of 17.85.
Investors should also note that MPLX has a PEG ratio of 5.46 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry had an average PEG ratio of 1.85 as trading concluded yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
, /PRNewswire/ -- MPLX LP (NYSE: MPLX) will host a conference call on Tuesday, August 4, 2026, at 9:30 a.m. EDT to discuss 2026 second-quarter financial results.
Interested parties may listen to the conference call by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including the earnings release and other investor-related material, will also be available online prior to the conference call and webcast at www.mplx.com.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.MPLX.com.
MPLX LP (MPLX - Free Report) closed at $55.67 in the latest trading session, marking a -2.11% move from the prior day. This change lagged the S&P 500's 1.65% gain on the day. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 3.07%.
The company's shares have seen an increase of 3.83% over the last month, surpassing the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 0.48%.
The upcoming earnings release of MPLX LP will be of great interest to investors. The company is expected to report EPS of $1.08, up 4.85% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.26 billion, indicating a 8.52% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.22 per share and a revenue of $13.09 billion, demonstrating changes of -12.45% and +0.71%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for MPLX LP. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.54% fall in the Zacks Consensus EPS estimate. MPLX LP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MPLX LP is currently trading at a Forward P/E ratio of 13.48. For comparison, its industry has an average Forward P/E of 19.37, which means MPLX LP is trading at a discount to the group.
It is also worth noting that MPLX currently has a PEG ratio of 5.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 1.78 at the close of the market yesterday.
The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Investors interested in stocks from the Oil and Gas - Production and Pipelines sector have probably already heard of Transportadora De Gas Sa Ord B (TGS) and MPLX LP (MPLX). But which of these two stocks is more attractive to value investors?
As Wall Street pours billions into artificial intelligence (AI) infrastructure, Oxbow Advisors founder Ted Oakley says investors are ignoring the massive energy and commodity demand needed to power the AI boom — creating an opportunity in beaten-down energy stocks.
A 64-year-old retiree with $475,000 who wants to generate $2,800 per month, or $33,600 annually, from dividends alone needs a portfolio yield of roughly 7%. That is simply the arithmetic. With the S&P 500 yielding well under 2%, a traditional index-fund portfolio falls far short of producing that level of income without selling shares. The... A $475,000 Portfolio That Quietly Pays $2,800 a Month From Just Two Sectors Most Investors Ignore
MLPs remain highly attractive for income investors due to defensive cash flows, CPI-linked contracts, and yields averaging ~7.5%. Recent MLP price surges do not signal overvaluation; current valuations are not detached given sector fundamentals and macro risks. MLPs have deleveraged, consolidated, and now benefit from higher inflation expectations and a flight-to-quality dynamic.
Pulling in $9,800 a month from a portfolio without selling a single share is the kind of math that can completely reshape a retirement plan. That works out to $117,600 a year, roughly four times the median U.S. monthly mortgage payment of about $2,200 for principal and interest. For a 64-year-old couple with a paid-off... A $1.7 Million Portfolio That Quietly Pays $9,800 a Month and Outpaces the Median U.S. Mortgage Payment Twice Over
MPLX LP stands out as my top MLP pick, offering a compelling combination of high yield, robust distribution growth, and lower risk relative to peers. MPLX units yield nearly 8%, trade at ~12x earnings, and management guides to 12.5% annual distribution growth through 2027, outpacing Enterprise Products Partners. The company's fee-based, long-term contracts and strategic ties to Marathon Petroleum Corporation provide stable, predictable cash flows and strong downside protection.
