Record Earnings, 18 Straight Hikes, 12%-15% Distribution Growth, Guidance Up Again, Insider Buying

Jul. 29, 2017 9:54 AM ETMPLX LP (MPLX)ARCX, ET, GPP, HEP, MMLP, MPC, PAA, PBF, SMLP47 Comments


  • Q2 '17 revenue, EBITDA and DCF all grew over 30% to record amounts.
  • Management has increased quarterly distributions 18 straight quarters - it goes ex-dividend this week.
  • It just increased 2017 guidance again for the second time this year.
  • Distribution will grow 12% to 15% in 2017 and double digits in 2018.
  • The CEO bought 9,000 shares in June.

If you're looking to get on the ascending side of a growth trajectory, maybe you should look closer at MPLX LP (NYSE:MPLX), a midstream energy MLP we've covered in previous articles.

We last covered MPLX on 5/4/17 - since then, it's up 9%. Although it trails the market year to date, it has caught a bid in the past month, rising 12.66%. Guggenheim started coverage on July 20th, giving it a Buy rating, with a target of $40.00.

The company's CEO, Gary Heminger, made a bullish move on June 12th, buying 9,000 shares at $33.26, for a total investment of $299K:

(Source: finviz)

MPLX has been on a roll, increasing its assets via drop-downs from its sponsor/general partner, Marathon Petroleum Corp. (NYSE:MPC). MPLX is a diversified, growth-oriented master limited partnership formed in 2012 to own, operate, develop, and acquire midstream energy infrastructure assets. In 2015, MPLX merged with MarkWest, whereby MarkWest became a wholly-owned subsidiary of MPLX.

Q2 '17 saw record amounts again, in revenue, net income, EBITDA, and DCF:

This asset growth trajectory has led to some rather impressive quarterly growth numbers over the past four quarters:

Which, in turn, has caused management to increase its 2017 EBITDA, DCF, and Net Income guidance for the 2nd straight quarter. In addition, management has reaffirmed its guidance for 12% to 15% distribution growth in 2017 and double-digit growth in 2018:

Unit count grew over 15%, as management issued units to help fund its acquisitions, but with 68% DCF growth, both distributions/unit and distribution coverage have grown in the past four quarters:


Management declared its 18th straight quarterly distribution hike, raising the payout to $.5625 vs. last quarter's $.54 payout. It currently yields 6.2% and goes ex-dividend this week, on 8/3/17. MPLX has a four-year annualized distribution growth rate of

This article was written by

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Robert Hauver, MBA, was VP of Finance for an industry-leading corporation for 18 years, and publishes SA articles under the name DoubleDividendStocks. TipRanks rates DoubleDividendStocks in the Top 25 of all financial bloggers, and Seeking Alpha rates us in the Top 5 of several categories, including Dividend Ideas, Basic Materials, and Utilities. 

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Disclosure: I am/we are long MPLX, GPP, PBFX, MMLP, ARCX, ENBL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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