This Ultrahigh-Yield Dividend Stock Adds More Fuel to Its Growth Engine to Extend Its Growth Outlook Through 2029

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].