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Investing.com - UBS reiterated its Buy rating and $64.00 price target on MPLX LP (NYSE:MPLX) on Wednesday, citing multiple tailwinds that prompted the firm to raise its quarterly estimates. The midstream energy company, currently valued at $50.9 billion, has demonstrated strong performance with a 20.77% return over the past year and trades at a P/E ratio of 11.83.
The investment bank increased its third-quarter 2025 Natural Gas/NGL EBITDA estimate from $490 million to $534 million, reflecting MPLX’s higher ownership stakes in both the BANGL and Matterhorn projects.
UBS also adjusted its third-quarter 2025 Crude Oil/Product Logistics EBITDA estimate upward from $1,138 million to $1,171 million, partly due to one-month contributions from the Northwind Midstream acquisition.
The firm expects volume growth in the third quarter, particularly in the NGL segment, following heavy maintenance activity that affected MPLX’s second-quarter performance.
UBS noted several headwinds facing MPLX, including approximately $40 million in non-recurring project-related expenses primarily impacting the Crude Oil segment, NGL price sensitivity of about $6 million, and lower refining utilization guidance from Marathon Petroleum for the third quarter. According to InvestingPro analysis, MPLX shows signs of being slightly undervalued, with additional insights and detailed financial metrics available in the comprehensive Pro Research Report.
In other recent news, MPLX LP reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $1.03, missing the forecasted $1.06, and reported revenue of $3 billion, below the expected $3.18 billion. Stifel, in response, raised its price target on MPLX to $60 from $57, maintaining a Buy rating, citing confidence in the partnership’s growth trajectory despite the earnings miss. Conversely, Wells Fargo lowered its price target to $59 from $60, maintaining an Overweight rating, due to the impact of MPLX’s sale of its Rockies gathering and processing assets on future earnings. Additionally, MPLX LP announced the appointment of Ray N. Walker, Jr. to its board of directors. Walker brings significant industry experience, having previously served as chief operating officer of Encino Energy and Range Resources Corporation. This appointment increases the size of the general partner’s board to eleven members. These developments reflect MPLX’s ongoing strategic adjustments and leadership changes.
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