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Here's Why MPLX LP (MPLX) is an Attractive Investment Bet
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MPLX LP (MPLX - Free Report) witnessed upward estimate revisions for 2022 and 2023 earnings in the past 30 days.
The leading midstream energy player, with a Zacks Rank #2 (Buy), is likely to record earnings growth of 9.8% and 3.4% in 2022 and 2023, respectively.
Factors Working in Favor
Although oil and natural gas prices have improved drastically over the past year, by its very nature, the pricing scenario of the commodities remains volatile. Companies or partnerships operating oil and gas pipelines and storage facilities are relatively better positioned to sail through the price volatility. This is because midstream energy players generate stable fee-based revenues for their transportation and storage assets contracted by shippers for a long period of time. MPLX is no exception since the partnership is the operator of midstream energy infrastructure and logistics assets. MPLX is also involved in services related to fuel distribution.
The partnership has a strict capital discipline, with most of the spending remaining allocated toward growth projects. This reflects that the prime focus of MPLX is directed toward expansion and de-bottlenecking projects.
Along with its fourth-quarter results, MPLX announced that it will continue to focus on maintaining its investment-grade credit profile. Looking at the liquidity profile, MPLX has $3.2 billion available on its bank revolving credit facility.
Banking on its strong operations, low-cost culture and strict capital discipline, MPLX has been generating solid cashflows.
In the United States, Devon Energy is a leading upstream player with a strong footprint in the prolific Delaware Basin. Devon Energy is also focused on returning capital to shareholders.
In the past seven days, Devon Energy has witnessed upward earnings estimate revisions for 2022.
In the prolific Permian and Eagle Ford shale play, Viper Energy has a net of 27,027 royalty acres. Operations in those undeveloped assets require zero capital requirement. This secures sustainable free cashflow for Viper Energy.
In the past seven days, Viper Energy has witnessed upward earnings estimate revisions for 2022.
In the Permian – the most prolific basin in the United States – Centennial Resource has a strong footprint. Centennial Resource has announced a $350-million share buyback program, reflecting its focus on returning capital to stockholders.
In the past 30 days, Centennial Resource has witnessed upward earnings estimate revisions for 2022.
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Here's Why MPLX LP (MPLX) is an Attractive Investment Bet
MPLX LP (MPLX - Free Report) witnessed upward estimate revisions for 2022 and 2023 earnings in the past 30 days.
The leading midstream energy player, with a Zacks Rank #2 (Buy), is likely to record earnings growth of 9.8% and 3.4% in 2022 and 2023, respectively.
Factors Working in Favor
Although oil and natural gas prices have improved drastically over the past year, by its very nature, the pricing scenario of the commodities remains volatile. Companies or partnerships operating oil and gas pipelines and storage facilities are relatively better positioned to sail through the price volatility. This is because midstream energy players generate stable fee-based revenues for their transportation and storage assets contracted by shippers for a long period of time. MPLX is no exception since the partnership is the operator of midstream energy infrastructure and logistics assets. MPLX is also involved in services related to fuel distribution.
The partnership has a strict capital discipline, with most of the spending remaining allocated toward growth projects. This reflects that the prime focus of MPLX is directed toward expansion and de-bottlenecking projects.
Along with its fourth-quarter results, MPLX announced that it will continue to focus on maintaining its investment-grade credit profile. Looking at the liquidity profile, MPLX has $3.2 billion available on its bank revolving credit facility.
Banking on its strong operations, low-cost culture and strict capital discipline, MPLX has been generating solid cashflows.
Other Stocks to Consider
Other prospective players in the energy space are Devon Energy Corporation (DVN - Free Report) , Viper Energy Partners LP (VNOM - Free Report) and Centennial Resource Development, Inc. . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the United States, Devon Energy is a leading upstream player with a strong footprint in the prolific Delaware Basin. Devon Energy is also focused on returning capital to shareholders.
In the past seven days, Devon Energy has witnessed upward earnings estimate revisions for 2022.
In the prolific Permian and Eagle Ford shale play, Viper Energy has a net of 27,027 royalty acres. Operations in those undeveloped assets require zero capital requirement. This secures sustainable free cashflow for Viper Energy.
In the past seven days, Viper Energy has witnessed upward earnings estimate revisions for 2022.
In the Permian – the most prolific basin in the United States – Centennial Resource has a strong footprint. Centennial Resource has announced a $350-million share buyback program, reflecting its focus on returning capital to stockholders.
In the past 30 days, Centennial Resource has witnessed upward earnings estimate revisions for 2022.