MPLX LP (MPLX Quick QuoteMPLX - Free Report) has seen upward earnings estimate revisions for 2023 in the past 60 days. The stock, carrying a Zacks Rank #3 (Hold), has gained 4.8% year to date against a 3% decline of composite stocks belonging to the industry. 

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. 

Risks

However, MPLX has a significantly higher exposure to debt capital than composite stocks belonging to the industry. Also, increasing expenses related to operations is hurting the bottom line.

Stocks to Consider

Better-ranked players in the energy space include Murphy USA Inc. (MUSA Quick QuoteMUSA - Free Report) , Sunoco LP (SUN Quick QuoteSUN - Free Report) and Valero Energy Corporation (VLO Quick QuoteVLO - Free Report) . While Murphy USA and Valero Energy carry a Zacks Rank #2 (Buy), Sunoco sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is a well-known name as a prime retailer of gasoline and convenience merchandise. MUSA, having more than 1,700 stores, has witnessed upward earnings estimate revisions in the past 60 days for 2023 earnings.

Sunoco has a stable business model while transporting motor fuel to roughly 10,000 convenience stores. In the past 30 days, Sunoco has witnessed upward earnings estimate revisions for 2023.

Valero Energy is well poised to gain from constraint capacity in global refining activities and favorable demand for refined products. This, in turn, will possibly drive utilization in refining capacity and hence will boost cashflows.