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Precision Drilling Corporation (PDS) - free report >>
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Precision Drilling Corporation (PDS) - free report >>
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Why it is Worth Adding MPLX Stock to Your Portfolio Now
MPLX LP (MPLX - Free Report) has seen upward earnings estimate revisions for 2022 in the past 30 days. The stock, carrying a Zacks Rank #2 (Buy), is likely to witness earnings growth of 29.7% this year.
What’s Favoring the Stock?
Being a leading midstream energy player, MPLX has the least exposure to commodity price fluctuations. This is because the midstream assets are contracted by shippers for the long term. The assets of MPLX comprise a network of pipelines that carry crude oil and refined products. It also generates cashflows from fuel distribution operations.
The key assets of the large-cap master limited partnership comprise crude oil and natural gas gathering systems and pipelines. In the prolific supply basins in the United States, MPLX has natural gas and NGL processing and fractionation facilities.
Apart from gauging low-carbon opportunities, MPLX is banking on several organic growth projects. Backed by its stable and growing business, the partnership is committed to returning capital to unitholders.
Other Stocks to Consider
Other prospective players in the energy space include Phillips 66 (PSX - Free Report) , Precision Drilling Corporation (PDS - Free Report) and NexTier Oilfield Solutions Inc. . All the stocks carry a Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
To make its operations more stable, Phillips 66 is giving more attention to midstream (pipelines), renewables and chemicals businesses. It also has strong refining operations.
Precision Drilling is a well-known name in the energy space for offering its clients access to an extensive fleet of Super Series drilling rigs. Its services also include offering well service rigs. With high commodity prices, demand for PDS’ drilling rigs is favorable.
NexTier Oilfield Solutionsis also a well-known U.S. land oilfield service player. With higher exploration and production by upstream companies, demand for NexTier Oilfield’s diverse set of well completion and production services is handsome.