The primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent. Start your free two-week trial today!MPLX LP (NYSE: MPLX ) is a midstream company that has performed very well in 2024 so far. But despite hefty gains, the company offers a high distribution yield of close t ...

Core Insights - The S&P 500 index achieved a remarkable return of 23.2% for the year 2023, marking it as one of the best years for the index, excluding dividends [1]. Group 1 - The article highlights the performance of the S&P 500, indicating a significant increase in value for investors who bought at the close on the last trading day of 2023 [1].

MPLX LP (MPLX) reported third-quarter 2024 earnings of $1.01 per unit, which missed the Zacks Consensus Estimate of $1.06. The bottom line, however, increased from the year-ago figure of 89 cents.Total quarterly revenues of $2.97 billion missed the Zacks Consensus Estimate of $3.06 billion. The top line, however, increased from the prior-year level of $2.91 billion.Lower-than-expected quarterly results were mainly due to higher depreciation and amortization costs and increased general and administrative exp ...

Core Viewpoint - MPLX has consistently expanded its operations and maintained a strong financial position, allowing for continued growth and distribution increases in the future [1][2][11] Financial Performance - MPLX generated nearly $4.3 billion in net cash from operating activities in the first nine months of the year, a 9.3% increase year-over-year [5] - The company invested over $1.6 billion in organic expansion projects and acquisitions, resulting in approximately $2.6 billion in free cash flow, just $5 million short of its distribution payments [5] - As of the end of the third quarter, MPLX had $2.4 billion in cash and a leverage ratio of 3.4, well below the 4.0 ratio its cash flows can support [6] Growth Strategy - MPLX has a growing list of expansion projects, including the BANGL pipeline, Blackcomb and Rio Bravo pipelines, and new processing plants in the Permian and Marcellus regions, expected to come online between 2025 and 2026 [8][9] - The company has achieved mid-single-digit growth in earnings and cash flow since 2020, with a 10.7% compound annual distribution increase since 2021, including a 12.5% increase this year [7] Future Outlook - The ongoing expansion projects are expected to provide incremental cash flow, supporting future distribution increases [9] - MPLX has the financial flexibility to pursue additional accretive acquisitions, enhancing its growth potential [10]

I shared my “Strong Buy” MPLX LP (NYSE: MPLX ) recommendation in May , and the stock has delivered almost 15% to investors since then. The stock has performed better than the S&P 500 Index (Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investment decis ...

Financial Data and Key Metrics Changes - MPLX reported record adjusted EBITDA of $1.7 billion for Q3 2024, a 7% increase compared to Q3 2023 [8] - Distributable cash flow was $1.4 billion, supporting nearly $950 million returned to unitholders [9][27] - The distribution was increased by 12.5% to approximately $3.83 per unit annualized, with strong distribution coverage of 1.5 times [28][31] Business Line Data and Key Metrics Changes - The Logistics and Storage (L&S) segment adjusted EBITDA increased by $66 million year-over-year, driven by higher rates and throughputs [21] - The Gathering and Processing (G&P) segment also set a new record with adjusted EBITDA increasing by $52 million compared to Q3 2023, supported by increased volumes from acquired assets [22] - Total gathered volumes were up 8% year-over-year, with processing volumes increasing by 9% [23][24] Market Data and Key Metrics Changes - The U.S. refining industry is expected to remain structurally advantageous over the rest of the world, with Marathon's refining assets considered highly competitive [11] - MPLX handles over 10% of all natural gas produced in the U.S., achieving a new daily record of over 10 billion cubic feet per day [26] Company Strategy and Development Direction - MPLX's capital spending is expected to exceed $1 billion for the year, focusing on growth in natural gas and NGL assets [12] - The company is advancing its strategic growth objectives with projects like the Harmon Creek III processing plant, expected to enhance its position as the largest processor of natural gas in the Northeast [14] - The company is committed to operational excellence and continuous improvements, as demonstrated by the Bluestone plant achieving ENERGY STAR certification [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of cash flows and the potential for continued distribution increases, supported by strong growth opportunities [31] - The company is well-positioned to support the development plans of producer customers as demand for natural gas-powered electricity increases [10][11] - Management highlighted the importance of maintaining strict capital discipline while exploring growth opportunities [60] Other Important Information - MPLX's leverage was reported at 3.4 times at the end of the quarter, with a cash balance of $2.4 billion [28] - The company closed the acquisition of additional interest in the BANGL pipeline, increasing ownership to 45% [17] Q&A Session Summary Question: What drove the increase in distribution this year? - Management indicated that the durability of cash flows was the main reason for the 12.5% increase compared to previous years' 10% [35] Question: Can you provide insights on the Marcellus project opportunities? - Management noted that the Marcellus is a significant area for MPLX, with ongoing discussions with producer customers about future needs [39][42] Question: How do you view future growth opportunities, including M&A? - Management emphasized a focus on organic growth opportunities while remaining open to bolt-on acquisitions as needed [46][48] Question: What is the status of the Rio Bravo pipeline project? - Management confirmed that the project is moving forward on schedule despite recent legal challenges [49] Question: How does MPLX plan to support increased natural gas demand? - Management stated that MPLX is well-positioned to support producer customers as demand for natural gas increases, particularly in relation to data centers [51][52] Question: Can you provide an update on the Texas City frac and storage project? - Management indicated that the evaluation process is ongoing, focusing on capital discipline and strategic alternatives [54][66] Question: What is the outlook for distribution growth sustainability? - Management expressed confidence in maintaining the 12.5% distribution growth for a period, supported by strong cash flow growth [57][58] Question: How does MPLX view dropdown opportunities from Marathon? - Management stated that dropdowns are not a priority but will be considered if they align with organic growth opportunities [61][62]

```markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) MPLX reported strong Q3 2024 financial results, with significant growth in net income and adjusted EBITDA, alongside increased unitholder distributions Q3 2024 Key Financial Metrics (in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Income attributable to MPLX | $1,037 million | $918 million | | Adjusted EBITDA attributable to MPLX | $1,714 million | $1,596 million | | Net Cash from Operating Activities | $1,415 million | $1,244 million | | Distributable Cash Flow (DCF) | $1,446 million | $1,373 million | | Distribution per Common Unit | $0.9565 | $0.8500 | - The quarterly distribution was increased by **12.5%** to **$0.9565** per common unit, which annualizes to **$3.83** per unit[1](index=1&type=chunk) - The company returned **$949 million** of capital to unitholders during the quarter, which includes distributions and **$76 million** in unit repurchases[1](index=1&type=chunk)[4](index=4&type=chunk) - Management stated that the durability of cash flows supported the distribution increase and expects the growing portfolio to support similar annual increases in the future[4](index=4&type=chunk) [Segment Results](index=2&type=section&id=Segment%20Results) Both MPLX operating segments showed year-over-year growth in Q3 2024, with L&S driven by higher rates and G&P by increased volumes Segment Adjusted EBITDA (in millions) | Segment | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Logistics and Storage | $1,157 | $1,091 | | Gathering and Processing | $557 | $505 | [Logistics & Storage (L&S)](index=2&type=section&id=Logistics%20%26%20Storage) L&S segment adjusted EBITDA rose to $1,157 million in Q3 2024, fueled by higher tariffs and increased pipeline and terminal throughputs - The **$66 million** increase in adjusted EBITDA was primarily driven by higher rates and throughputs, including growth from equity affiliates, partially offset by higher operating expenses[6](index=6&type=chunk) L&S Operating Metrics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Pipeline Throughput | 6.0 million bpd | 5.9 million bpd | +1% | | Average Pipeline Tariff | $1.01 / barrel | $0.99 / barrel | +2% | | Terminal Throughput | 3.3 million bpd | 3.2 million bpd | +1% | [Gathering & Processing (G&P)](index=2&type=section&id=Gathering%20%26%20Processing) G&P segment adjusted EBITDA grew to $557 million in Q3 2024, driven by significant volume increases and recent asset acquisitions in key basins - The increase in G&P adjusted EBITDA was primarily due to increased volumes, including contributions from recently acquired assets in the Utica and Permian basins[8](index=8&type=chunk) G&P Operating Volume Growth (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change YoY | | :--- | :--- | :--- | | Gathered Volumes | 6.7 bcf/d | +8% | | Processed Volumes | 9.8 bcf/d | +9% | | Fractionated Volumes | 635 thousand bpd | +4% | Marcellus Operations Volume Growth (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change YoY | | :--- | :--- | :--- | | Gathered Volumes | 1.5 bcf/d | +11% | | Processed Volumes | 6.0 bcf/d | +4% | | Fractionated Volumes | 550 thousand bpd | +1% | [Strategic Update](index=3&type=section&id=Strategic%20Update) MPLX is expanding capacity in key basins, with L&S advancing Permian pipeline projects and G&P adding processing and fractionation capacity through 2026 - In the L&S segment, MPLX is expanding its Permian and Bakken value chains through natural gas, NGL, and crude pipeline projects[11](index=11&type=chunk) - In the G&P segment, MPLX is focused on responding to producer demand in the Permian and Marcellus basins with new processing plants[12](index=12&type=chunk) - A new processing plant and de-ethanizer in the Northeast is expected to bring total processing and fractionation capacity to **8.1 bcf/d** and **800 mbpd**, respectively, in the **second half of 2026**[1](index=1&type=chunk)[14](index=14&type=chunk) [L&S Segment Projects](index=3&type=section&id=L%26S%20Segment%20Projects) The L&S segment is advancing key pipeline projects to enhance its Permian basin value chain, including the BANGL JV expansion and new natural gas pipelines - The BANGL joint venture pipeline is being expanded to increase capacity to **250 thousand bpd**, with completion expected in **Q1 2025**[12](index=12&type=chunk) - The Blackcomb and Rio Bravo pipelines are being progressed to transport Permian natural gas to the Gulf Coast, with an expected in-service date in **H2 2026**[12](index=12&type=chunk) [G&P Segment Projects](index=3&type=section&id=G%26P%20Segment%20Projects) G&P segment is expanding capacity with new plants in Permian and Marcellus, increasing gas processing and fractionation capabilities by 2026, with Utica volumes surging - **Permian:** Preakness II (**200 mmcf/d**) began operations in July; Secretariat (**200 mmcf/d**) is expected online in **H2 2025**. These will bring Delaware basin processing capacity to **1.4 bcf/d**[13](index=13&type=chunk) - **Marcellus:** Harmon Creek II (**200 mmcf/d**) was placed in service in February; Harmon Creek III (**300 mmcf/d** plant and **40k bpd** de-ethanizer) is expected online in **H2 2026**[14](index=14&type=chunk) - **Utica:** The company is increasing utilization of existing capacity, with gas processing volumes up **50%** year-to-date versus the same period in 2023[14](index=14&type=chunk) [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) As of September 30, 2024, MPLX maintained a robust financial position with $2.4 billion cash, $3.5 billion available liquidity, and a stable 3.4x leverage ratio Liquidity Position as of Sept 30, 2024 (in billions) | Item | Amount | | :--- | :--- | | Cash | $2.4 billion | | Available on Revolving Credit Facility | $2.0 billion | | Available on Intercompany Loan with MPC | $1.5 billion | - The partnership's leverage ratio was **3.4x**, while the stability of cash flows supports leverage in the range of **4.0x**[15](index=15&type=chunk) - MPLX repurchased **$76 million** of common units in Q3 2024 and had approximately **$620 million** remaining under its repurchase authorization as of September 30, 2024[15](index=15&type=chunk) [Financial Tables and Reconciliations](index=7&type=section&id=Financial%20Tables%20and%20Reconciliations) This section provides detailed financial statements, including consolidated results, balance sheet data, operating statistics, and non-GAAP reconciliations for Q3 2024 [Condensed Consolidated Results of Operations](index=7&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) For Q3 2024, MPLX reported increased total revenues and net income attributable to MPLX LP, with diluted EPS rising to $1.01 Consolidated Results of Operations (in millions, except per unit data) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total revenues and other income | $2,972 | $2,912 | | Income from operations | $1,275 | $1,154 | | Net income attributable to MPLX LP | $1,037 | $918 | | Diluted EPS | $1.01 | $0.89 | [Select Financial and Cash Flow Data](index=8&type=section&id=Select%20Financial%20and%20Cash%20Flow%20Data) In Q3 2024, MPLX declared $974 million in distributions and generated $1,415 million in net cash from operating activities, with a 1.5x distribution coverage Cash Flow Data (in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,415 | $1,244 | | Net cash used in investing activities | $(536) | $(236) | | Net cash used in financing activities | $(954) | $(803) | - Total GP and LP distributions declared for Q3 2024 were **$974 million**, compared to **$851 million** for Q3 2023[31](index=31&type=chunk) [Select Balance Sheet Data](index=9&type=section&id=Select%20Balance%20Sheet%20Data) As of September 30, 2024, MPLX's balance sheet showed total assets of $38.5 billion and total debt of $22.1 billion, with a 3.4x debt to LTM adjusted EBITDA ratio Balance Sheet Highlights (in millions) | Item | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,426 | $1,048 | | Total assets | $38,515 | $36,529 | | Total debt | $22,086 | $20,431 | | Total equity | $13,779 | $12,689 | [Operating Statistics](index=9&type=section&id=Operating%20Statistics) In Q3 2024, L&S segment pipeline throughput increased 1% with a 2% tariff rise, while G&P volumes showed strong growth across all activities L&S Operating Statistics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change | | :--- | :--- | :--- | | Total Pipeline Throughput (mbpd) | 5,951 | 1% | | Average Tariff Rate ($/barrel) | $1.01 | 2% | | Terminal Throughput (mbpd) | 3,268 | 1% | G&P Operated Statistics (Q3 2024 vs Q3 2023) | Metric | Q3 2024 | % Change | | :--- | :--- | :--- | | Total Gathering Throughput (MMcf/d) | 6,737 | 8% | | Total Natural Gas Processed (MMcf/d) | 9,775 | 9% | | Total C2+ NGLs Fractionated (mbpd) | 635 | 4% | [Reconciliations of Non-GAAP Measures](index=12&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of non-GAAP financial measures like Adjusted EBITDA, DCF, and Adjusted Free Cash Flow to their GAAP counterparts for Q3 2024 - These tables reconcile GAAP measures like Net Income and Net Cash Provided by Operating Activities to non-GAAP measures such as Adjusted EBITDA, Distributable Cash Flow (DCF), and Adjusted Free Cash Flow (Adjusted FCF)[18](index=18&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Q3 2024 Reconciliation from Net Income (in millions) | Item | Amount | | :--- | :--- | | Net Income | $1,047 | | ...Adjustments... | ... | | **Adjusted EBITDA attributable to MPLX LP** | **$1,714** | | ...Adjustments... | ... | | **DCF attributable to LP unitholders** | **$1,440** | Q3 2024 Reconciliation from Operating Cash Flow (in millions) | Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $1,415 | | Net cash used in investing activities | $(536) | | Other adjustments | $(2) | | **Adjusted free cash flow** | **$876** | [Capital Expenditures](index=17&type=section&id=Capital%20Expenditures) MPLX's total growth capital expenditures for Q3 2024 were $258 million, with maintenance capital expenditures also increasing to $39 million Capital Expenditures (in millions) | Category | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total growth capital expenditures | $258 | $159 | | Total maintenance capital expenditures | $39 | $28 | ```

Core Viewpoint - MPLX LP is expected to report third-quarter 2024 results on November 5, with earnings estimated at $1.06 per unit, reflecting a 19.1% increase year-over-year, and revenues projected at $3.04 billion, indicating a 4.4% rise from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for total pipeline throughput in Q3 is 6,023.93 thousand barrels per day (MBbl/D), up from 5,886 MBbl/D in the same quarter last year [5]. - MPLX's stock has increased by 32.5% over the past year, outperforming the oil-energy sector's growth of 3.9% [6]. Earnings Expectations - The current Earnings ESP for MPLX is 0.00%, and it holds a Zacks Rank of 4 (Sell), indicating a low probability of an earnings beat this quarter [2]. Business Stability - As a large midstream energy player, MPLX's business is less susceptible to oil and gas price volatility, leading to stable and predictable cash flows [4]. Revenue Growth Factors - MPLX's revenue growth is closely linked to U.S. oil production, which has shown signs of slowing, potentially impacting future revenue growth [7]. - A decline in refining margins due to increased global refining capacity may adversely affect MPLX's profitability from transporting refined oil products [8]. Long-term Risks - Advancements in renewable energy technologies could reduce the demand for fossil fuels, posing a long-term risk to MPLX's infrastructure demand [9]. Valuation Concerns - MPLX's current trailing 12-month enterprise value/EBITDA ratio is 10.05, significantly higher than the industry average of 3.31, suggesting the stock may be overvalued [6].

Core Insights - The article emphasizes the importance of long-term focused in-depth fundamental analysis in investment decision-making [1] Group 1 - The author has 15 years of professional experience in equity markets and previously worked as an associate at a $10 billion hedge fund [1] - The author holds a First-Class Honours degree in Financial Economics from the University of London and is a CFA Level III candidate [1] - The author expresses a strong interest in reading and has a particular admiration for Berkshire Hathaway [1]

FINDLAY, Ohio, Oct. 29, 2024 /PRNewswire/ -- The board of directors of the general partner of MPLX LP (NYSE: MPLX) has declared a quarterly cash distribution of $0.9565 per common unit for the third quarter of 2024, or $3.826 on an annualized basis. This represents a 12.5% increase, or $0.1065 increase per common unit, over the second quarter 2024 distribution. The distribution will be paid on Nov. 15, 2024, to common unitholders of record as of Nov. 8, 2024. Qualified Tax Notice Concurrent with this announ ...