MPLX LP for High Yield and Growth - June 22

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

MPLX LP for High Yield and Growth - June 22

Post by dan_s »

One of our Top Shelf MBA's has finished his report on MPLX. The profile and forecast model has been posted to the EPG website.

> MPLX is an MLP that pays quarterly cash distributions,which today have ~8.2% annual yield.
> They have increased their tax deferred cash distribution for 25 consecutive quarters.
> Their goal is to increase quarterly distributions by 10% annually and their forecasts indicate that goal will be easily achieved.
> MPLX will merge with ANDX in the 3rd quarter. The merger should push their market-cap up to approximately $40 Billion, making it one of North America's largest midstream companies.
> The merger is expected to be immediately accretive to DCF per unit.

On June 11, 2019 Merrill Lynch rated MPLX a BUY with a $39/unit price target.
Dan Steffens
Energy Prospectus Group
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