MPLX Announces 12.5% Distribution Hike, Data Center Opportunity

Core Insights - MPLX reported third-quarter 2025 financial results that met market expectations, including a 12.5% increase in unitholder distribution and a strategic opportunity to support data centers in Texas [1][2] Financial Performance Overview - Adjusted EBITDA for the third quarter was $1.77 billion, aligning with the consensus estimate of $1.75 billion [2] - The quarterly distribution was increased by 12.5% to $1.0765 per unit, effective in late October [2] - The company aims to sustain annual distribution growth while maintaining distribution coverage at or above 1.3x [3] Growth Outlook - MPLX reaffirmed its outlook for mid-single-digit adjusted EBITDA growth for 2025 and beyond, with stronger growth expected in 2026 [4] - Key projects, such as the Secretariat processing plant, are anticipated to support these growth expectations [4] Strategic Developments - A significant development was the letter of intent (LOI) with MARA to supply natural gas for power generation and data centers in West Texas, starting at 400 megawatts with potential scaling to 1.5 gigawatts [4][5] - This opportunity demonstrates that lucrative data center sector prospects can align with existing gathering and processing assets [5] Market Position - MPLX is the top holding in the Alerian MLP ETF (AMLP), which has a yield of 8.34% as of November 4 [5]