E Daily Stock Pick: MPLX LP

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.  (Those six oily and gassy enterprises.)

Today I'm reviewing a large-cap oil and gas midstream company named MPLX LP. Its trading ticker symbol is MPLX.

MPLX is primarily a refinery logistics master limited partnership with extensive holdings in the Marcellus/Utica region. The asset base is made up of assets dropped down from Marathon Petroleum, its sponsor, and gathering, and processing assets from MarkWest, which it acquired in 2015.

It operates in two segments, Logistics and Storage, and Gathering and Processing segments. The company is involved in the gathering, processing, and transportation of natural gas; gathering, transportation, fractionation, storage, and marketing of natural gas liquids (NGLs); and gathering, transportation, and storage of crude oil and refined petroleum products.

MPLX LP also engages in inland marine business, which transports light products, heavy oils, crude oil, renewable fuels, chemicals, and feedstocks in the Midwest and U.S. Gulf Coast regions through inland marine vessels.

MPLX GP LLC acts as the general partner of MPLX LP. MPLX LP was founded in 2012 and is based in Findlay, Ohio. MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.

I use three key data points to gauge the value of any dividend equity like MPLX LP.:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

MPLX Price

MPLX's price per share closed at $33.26 yesterday. A year ago its price was $34.85. So price fell  $1.59 per share last year, 4.5%.

Assuming MPLX's stock trades in the range of $25 to $40 next year, MPLX's recent $33.26 price could rise by  $1.74 and go to $35.00 by early-February, 2020.

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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from ycharts.com; finance.yahoo.com; analyst target prices by Thomson/First Call in Yahoo Finance.

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