MPLX LP, one of the midstream MLPs in our High Yield Income Portfolio, reported solid Q2 results.
• Reported second-quarter net income of $19 million and adjusted EBITDA of $351 million
• Reported second-quarter net cash from operating activities of $298 million and distributable cash flow of $285 million
• Declared distribution of $0.510 per common unit, a 16 percent increase over second-quarter 2015
• Expanded operations to the prospective Delaware Basin with completion of the Hidalgo gas processing complex
• Confirmed 2016 guidance of 12 to 15 percent distribution growth rate over the prior year, double-digit distribution growth rate in 2017
Like MMP, it has distribution growth locked in.
MPLX for High Yield
MPLX for High Yield
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: MPLX for High Yield
I have posted my updated forecast model for MLPX to the EPG Website.
It has very predictable cash flow growth locked in and they are committed to increasing distributions quarter-after-quarter.
First Call's price target of $37.79 is reasonable.
It has very predictable cash flow growth locked in and they are committed to increasing distributions quarter-after-quarter.
First Call's price target of $37.79 is reasonable.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: MPLX for High Yield
I acquired my MPLX as a result of their MWE merger/acquisition. I liked MWE, but am disappointed in MPLX distributions. They don't walk the talk.
Distributions increased the past two quarters, but only $0.005 each distribuiton. A long ways from the double digit percentage increase thy promote.
Distributions increased the past two quarters, but only $0.005 each distribuiton. A long ways from the double digit percentage increase thy promote.
Re: MPLX for High Yield
Wade (fellow former MWE shareholder):
1. The merger was secured with pie-in-the-sky promises to MWE shareholders and $53MM in parachutes to MWE management. A former ceo of MWE said MPLX would renege on its distribution growth promises. They reneged two months after closing.
The box score:
1. A walk-off homer for Marathon, which as general partner got MWE's incentive distribution rights.
2. An inside-the-park homer or triple for MWE management, depending on their individual parachutes.
3. A double for the MPLX shareholders.
4. MWE shareholders reached first base after taking a 97 mph fastball in the ribs.
1. The merger was secured with pie-in-the-sky promises to MWE shareholders and $53MM in parachutes to MWE management. A former ceo of MWE said MPLX would renege on its distribution growth promises. They reneged two months after closing.
The box score:
1. A walk-off homer for Marathon, which as general partner got MWE's incentive distribution rights.
2. An inside-the-park homer or triple for MWE management, depending on their individual parachutes.
3. A double for the MPLX shareholders.
4. MWE shareholders reached first base after taking a 97 mph fastball in the ribs.