MPLX’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks and associated piping; and crude and light-product marine terminals. It also owns crude oil and natural gas gathering systems and pipelines, as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.
Investors receive a 9.15% distribution. The J.P. Morgan price target is $41, while the consensus target is $39.42. On Tuesday, MPLX stock closed at $34.00 a share.
Plains All American Pipeline
This remains one of the top MLP picks across Wall Street. Plains All American Pipeline L.P. (NYSE: PAA) engages in the pipeline transportation, terminaling, storage and gathering of crude oil and NGLs in the United States and Canada. The company operates through two segments.
Its Crude Oil segment offers gathering and transporting of crude oil through pipelines, gathering systems, trucks and at times on barges or railcars. This segment provides terminaling, storage and other facilities-related services, as well as merchant activities.
The Natural Gas Liquids segment provides gathering, fractionation, storage, transportation and terminaling activities. This segment is also involved in ethane, propane, normal butane, iso-butane and natural gasoline, as well as crude oil refining processes.
The company posted solid results last week that topped Wall Street estimates, and it reaffirmed its guidance for 2023.
Investors receive an 8.45% dividend. Plains All American Pipeline stock has a Strong Buy rating at Raymond James. The firm’s $17 target price is higher than the $15.31 consensus target and Tuesday’s closing trade at $12.66.
These five top companies offer reasonably safe and reliable distributions, and they are major players in the energy infrastructure arena. Investors looking for solid total return potential can do well owning these MLP leaders. It is important to note that MLP distributions may contain return of principal. Those looking to avoid the pesky K-1s can always purchase shares in the ALPS Alerian MLP ETF. Investors receive a Form 1099 instead of a K-1.
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