Citi Reiterates Neutral Rating on MPLX LP (MPLX)

Citi analyst Spiro Dounis reiterated a Neutral rating and $43.00 price target on MPLX LP (NYSE: MPLX).

The analyst comments "We update our model ahead of earnings and estimate 3Q24 EBITDA of $1.675bln, in-line with the $1.677bln Street mean. Capital returns are likely in focus this quarter as we expect MPLX to announce its annual distribution increase ahead of earnings – 10% is our baseline assumption (in-line with prior two annual increases) although ~1.5x coverage and meaningful excess FCF could allow for a surprise to the upside. We also expect MPLX to remain active around buybacks and assume another $75mm in 3Q24. We expect 3Q EBITDA to skew sequentially higher with tailwinds, including continued ramp on recently completed processing capacity (Preakness II and Harmon Creek II), mid-year FERC tariff escalators, contributions from an additional 20% interest in BANGL, and initial volume ramp on the ADCC pipeline. Lower guided MPC utilization, commodity headwinds (we estimate <$5mm), and a reduced Whistler stake could all partially offset."

For an analyst ratings summary and ratings history on MPLX LP click here. For more ratings news on MPLX LP clic.k here.

Shares of MPLX LP closed at $44.68 yesterday.

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