MPLX Continues Steady Performance in Q3; Boosts Distributions 10% and Buys More Units

MPLX's third-quarter results continue to be steady, despite the volatility in the oil and gas markets. After updating our model, we maintain our $31 fair value estimate and narrow moat rating. Overall EBITDA improved to $1.5 billion from $1.4 billion last year, helped by a 5% increase in pipeline throughput and a 12% increase in gathered volumes. We expect similar results going forward, given MPLX's tight linkages to refineries and steady demand. The Whistler expansion to 2.5 billion cubic feet per day (bcf/d) from 2 bcf/d remains a highly attractive use of capital, given growing Permian gas production. MPLX is also adding laterals into the Midland basin and Corpus Christi domestic and export markets.