Summary

• MPLX LP stands out as my top MLP pick, offering a compelling combination of high yield, robust distribution growth, and lower risk relative to peers.
• MPLX units yield nearly 8%, trade at ~12x earnings, and management guides to 12.5% annual distribution growth through 2027, outpacing Enterprise Products Partners.
• The company’s fee-based, long-term contracts and strategic ties to Marathon Petroleum Corporation provide stable, predictable cash flows and strong downside protection.
• MPLX’s conservative leverage, 1.3x distribution coverage, and expanding Permian Basin footprint underpin my Buy rating and expectation of market-beating total returns.

MPLX Analysis

I've been searching far and wide for the best master limited partnerships. The names that keep landing on my list include Enterprise Product Partners L.P. (EPD), Western Midstream Partners, LP (WES), Energy Transfer Partners LP (ET), and now one new name: MPLX LP (MPLX).

This is right up there among my top picks in the entire energy sector, and here's why: MPLX gives you most of what makes Western Midstream attractive, the high starting yield and real distribution growth, without carrying the same commodity and customer-concentration risk. And it gives you what makes Enterprise a fortress, the balance sheet and the contract quality, while trading cheaper and growing faster. It sits lower on the risk curve than Western, and it offers more upside than Enterprise.

That's why I think its shares are a strong buy here, despite more than doubling in price over the past 5 years, as I argue below.

Cheaper and Faster Than Enterprise

Let's start with valuation, because this is where MPLX separates from the group. Units yield close to 8% and trade around 12 times earnings.

Now look at Enterprise. I recently covered Enterprise and called it a blue chip, no longer a bargain. The business is excellent. When you look at the valuation, though, it's really hard to call this a buy right now. Enterprise is yielding under 6% as of writing (5.61% to be exact). That's actually

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPLX, ET, EPD either through stock ownership, options, or other derivatives. 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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