Energy Prospectus

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.

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.

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.

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.