Western Midstream Partners and MPLX are top midstream picks, offering high yields, strong growth, and disciplined capital allocation. However, I believe WES is a better buy than MPLX today. I detail why in this article.
MPLX LP (MPLX) closed at $51.12 in the latest trading session, marking a +1.97% move from the prior day.
MPLX is set to sell its Rockies gathering and processing assets for $1B to sharpen its focus on the core Marcellus and Permian basins.
Harvest Midstream, owned by the founder of privately-held Hilcorp Energy, has agreed a deal to acquire around $1 billion of natural gas gathering and processing assets from MPLX , people familiar with the matter said.
Both MPLX and EPD are top-tier midstream MLPs, offering high yields, strong balance sheets, and mission-critical energy infrastructure assets. EPD stands out for its reliability, 27 years of distribution growth, industry-leading ROIC, and attractive valuation, making it a Strong Buy for conservative investors. MPLX impresses with faster distribution growth, superior ROIC, aggressive expansion, and higher expected total returns, warranting a Strong Buy for growth-oriented investors.
MPLX LP has an impressive portfolio of assets which the northwest midstream acquisition helps to cement. The company is a major player in the Permian Basin and growing strength at each step of the value chain. The company has a more than 7.5% yield, a strong one which it can comfortably afford with a 1.5x coverage ratio.
Northwind Midstream acquisition will boost MPLX's efforts to develop the integrated NGL value chain, expand its global reach, and meet rising demands for NGL. The global NGL market is projected to expand at a CAGR of almost 6% up to 2030, which will be a crucial long-term growth catalyst for MPLX. Management emphasized an optimistic outlook with the Northwind Midstream deal, with an immediate accretion of a 7x multiple on the forward EBITDA for 2027.
I maintain a dividend growth portfolio of 16 stocks and track hundreds more, frequently analyzing MLPs and midstream companies. Ranking stocks is challenging due to differing investor needs; my favorites may not suit everyone's goals or risk profiles. MLPs and midstream firms appeal to me for their blend of income, growth, and essential role in supporting rising U.S. energy production.
MPLX LP remains a 'buy' due to its stable cash flows, low leverage, and attractive valuation relative to peers. Despite recent underperformance versus the S&P 500, MPLX has delivered strong long-term returns and offers a high yield. Recent asset acquisitions and management's focus on growth opportunities should drive future profit and cash flow expansion.
MPLX recently pulled back fairly sharply following the release of its Q2 results. I think this presents unitholders with a compelling buying opportunity. I discuss why the market is selling off MPLX units and why I am buying them.
MPLX demonstrates continuous expansion through strategic acquisitions and organic growth and its strong dividend payment policy (7.65% yield). The stock price has increased by 150% during the last five years, while total return, including dividends, reached +300%. The company generated $1.7B in adjusted EBITDA during Q2 2025, while distributable cash flow reached $1.4B and distributed $1B to shareholders, while maintaining leverage below 4x.
MPLX is a top pick for income investors, offering a 7.65% yield and a decade-long track record of distribution growth. Strategic acquisitions and organic growth projects position MPLX for continued profitability, as energy demand rises, especially from data center expansion. Strong financials: revenue, EBITDA, and free cash flow have all grown significantly since 2019, supporting future distribution increases.