Core Viewpoint - Dividend-paying stocks are favored by income-seeking investors for stability amid economic uncertainty in 2025, with MPLX LP and Verizon Communications highlighted as attractive options for reliable cash flow [1][10]. MPLX LP - MPLX LP is currently trading at $54, with an 11% year-to-date gain, establishing itself as a leading dividend stock in the midstream energy sector [2]. - The company has a forward dividend yield of 7.09% and has maintained consistent payouts for 13 consecutive years, appealing to income-focused investors [3]. - MPLX reported $3.06 billion in revenue, reflecting a 3% year-over-year increase, with earnings per share (EPS) of $1.07 surpassing analyst expectations [3]. - With a market capitalization of $54.7 billion, MPLX operates extensive energy infrastructure, including pipelines and processing plants, and has announced a $2 billion capital expenditure plan for 2025, focusing 85% on Natural Gas and NGL Services projects [4]. - The company is also investing $2.5 billion to construct an LPG export terminal on the U.S. Gulf Coast, reinforcing its position as a stable investment for long-term dividend income [5]. Verizon Communications - Verizon Communications is currently trading at $41.06, with a five-day gain of 2.8%, maintaining its status as a top dividend stock supported by strong cash flow [6]. - The company offers a forward dividend yield of 6.6%, significantly higher than the telecommunications sector average of 3%, with a moderate forward payout ratio of 65.4% [7]. - Verizon generated $19.8 billion in free cash flow in 2024, providing sufficient liquidity for dividends, debt reduction, and future investments [8]. - The company anticipates flat to 3% earnings growth in 2025, with free cash flow projected between $17.5 billion and $18.5 billion, demonstrating strong financials and a commitment to returning capital to shareholders [9].

Market Overview - Despite increased market volatility and weak visibility on future inflation and interest rates, many asset classes have recently experienced significant price increases [1] Individual Contributions - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [2] - His policy-level work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2] - Berzins holds a CFA Charter and an ESG investing certificate, and has interned at the Chicago Board of Trade [2] - He is actively involved in thought-leadership activities to support the development of pan-Baltic capital markets [2]

Core Viewpoint - MPLX continues to emphasize its growth trajectory, indicating a commitment to expanding its operations and financial performance [1]. Group 1 - MPLX has a history of resilience through various market crashes, showcasing its ability to adapt and thrive in challenging economic conditions [1]. - The company has been utilizing trading systems for investment strategies, which have yielded positive results from both buy-and-hold and trading approaches [1]. - MPLX's management appears to be focused on maintaining a strong cash position, although there are indications that excess cash dynamics may be slowing down [1].

Core Insights - MPLX LP reported fourth-quarter 2024 earnings of $1.07 per unit, exceeding the Zacks Consensus Estimate of $1.04, but down from $1.10 in the previous year [1] - Total quarterly revenues reached $3.06 billion, slightly missing the Zacks Consensus Estimate of $3.08 billion, yet showing an increase from $2.97 billion year-over-year [1] Financial Performance - The better-than-expected earnings were driven by higher throughputs and contributions from newly acquired assets in the Utica and Permian Basins, although these were partially offset by increased costs and expenses [2] - Total costs and expenses rose to $1.72 billion from $1.59 billion a year ago, primarily due to higher operating expenses and increased depreciation and amortization [7] Segment Performance - Adjusted EBITDA from the Crude Oil and Products Logistics segment increased to $1.12 billion from $1.06 billion year-over-year, supported by higher rates and throughputs, with total pipeline throughputs averaging 5.9 million barrels per day, up 1% [4] - Adjusted EBITDA from the Natural Gas and NGL Services segment rose to $639 million from $560 million, driven by higher volumes and contributions from newly acquired assets [5] - Gathering throughput volumes averaged 6.7 billion cubic feet per day, reflecting an 8% increase, while natural gas processed volumes totaled 9.9 Bcf/d, indicating a 6% increase from the previous year [6] Cash Flow and Balance Sheet - Distributable cash flow for the quarter was $1.48 billion, providing 1.5X distribution coverage, an increase from $1.38 billion year-over-year [8] - Adjusted free cash flow rose to $1,324 million from $964 million in the same period of 2023 [8] - As of December 31, 2024, cash and cash equivalents stood at $1.52 billion, with total debt at $20.95 billion [9] Future Outlook - MPLX anticipates capital spending of approximately $2 billion for 2025, with allocations of $1.45 billion for Natural Gas and NGL Services growth, $250 million for Crude Oil and Products Logistics growth, and $300 million for maintenance capital [10]

Core Viewpoint - MPLX is positioned as a high-growth, high-yield investment opportunity, offering a cash distribution yield of over 7% while achieving a compound annual growth rate of nearly 7% in distributable cash flow since 2021 and a 10.7% increase in distribution during the same period [1][9]. Growth Strategy - MPLX has approved several new expansion projects aimed at increasing cash flow through 2029, enhancing its ability to maintain high-yield distributions [2][9]. - The company is expanding its Permian-to-Gulf Coast strategy to boost the flow of natural gas and natural gas liquids (NGLs) from the Permian Basin to major markets [3][9]. Specific Projects - MPLX is constructing a Gulf Coast NGL fractionation complex with two facilities, each capable of processing 150,000 barrels per day, expected to be operational in 2028 and 2029 [4]. - A strategic partnership with Oneok is underway to develop a 400,000 barrels per day LPG export terminal, with a total investment of $1.4 billion, anticipated to be operational in early 2028 [5]. - The BANGL NGL pipeline is being expanded from 250,000 bpd to 300,000 bpd, with the additional capacity expected to be in service in the second half of next year [6]. Ongoing Developments - MPLX is also building the Secretariat natural gas processing plant in the Permian Basin, set to enter service in the fourth quarter of this year, and the Harmon Creek III gas processing plant, expected to be operational in the second half of next year [7]. - A joint venture with Enbridge and other partners is combining the Whistler and Rio Bravo pipeline projects to enhance natural gas flow from the Permian Basin to Gulf Coast markets, with service expected in the second half of next year [8]. Long-term Outlook - The growing backlog of expansion projects will diversify MPLX's business, adding NGL fractionation and export capabilities, significantly enhancing its long-term growth outlook [9]. - With visibility into growth through the end of the decade, MPLX is well-positioned to continue increasing its high-yield distribution over the coming years [9][11].

Core Insights - MPLX LP reported revenue of $3.06 billion for Q4 2024, a year-over-year increase of 3.3%, with EPS of $1.07 compared to $1.10 a year ago, indicating a slight decline in earnings per share [1] - The revenue fell short of the Zacks Consensus Estimate by 0.47%, while the EPS exceeded the consensus estimate by 2.88% [1] Financial Performance Metrics - Average tariff rates for crude oil pipelines were $1.08, slightly above the estimated $1 [4] - Pipeline throughput for crude oil was 3,831 million barrels per day, slightly below the estimated 3,844.01 million barrels per day [4] - Natural gas processed in Southwest operations was 2,020 million cubic feet per day, below the estimated 2,229.92 million cubic feet per day [4] - Gathering throughput in Southwest operations was 1,788 million cubic feet per day, below the estimated 2,088.84 million cubic feet per day [4] - Total pipeline throughput was 5,857 million barrels per day, slightly below the estimated 5,899.23 million barrels per day [4] - Adjusted EBITDA for Gathering and Processing was $639 million, exceeding the estimated $586.74 million [4] - Adjusted EBITDA for Logistics and Storage was $1.12 billion, slightly below the estimated $1.14 billion [4] Stock Performance - MPLX LP shares returned +6% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

MPLX (MPLX) Q4 2024 Earnings Call February 04, 2025 09:30 AM ET Company Participants Kristina Kazarian - Vice President of Finance & Investor Relations - MPLX GP LLCMaryann Mannen - President, CEO & Director of MPLX GP LLCKristopher Hagedorn - EVP & CFOJohn Mackay - VP - Equity ResearchDavid Heppner - Senior Vice President of MPLX GP LLCManav Gupta - Executive DirectorGregory Floerke - Executive VP & COOTheresa Chen - MD - Equity ResearchKeith Stanley - DirectorMichael Blum - Managing DirectorShawn Lyon - S ...

This presentation 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") goals and targets, includi ...

| | | | Three Months Ended December 31, | | | | Twelve Months Ended December 31, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (In millions, except per unit and ratio data) | | 2024 | | 2023 | | 2024 | | 2023 | | (a) Net income attributable to MPLX LP | $ | 1,099 | $ | 1,134 | $ | 4,317 | $ | 3,928 | | (b) Adjusted EBITDA attributable to MPLX LP | | 1,762 | | 1,623 | | 6,764 | | 6,269 | | Net cash provided by operating activities | | 1,675 | | 1,489 | | 5,946 | | 5,397 | | (b) Distributable ...

MPLX LP (NYSE: MPLX ) has the opportunity to cater to multiple megatrends involving increased demand for natural gas for power generation. I believe that MPLX will be in a strong position for growth and potential margin accretion forMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Informati ...