MPLX beats earnings forecasts, hikes distribution 12.5%
Midstream company projects mid-single digit EBITDA growth for 2026 on $2.4B growth capital plan
MPLX LP reported fourth-quarter earnings that exceeded analyst expectations and announced a 12.5% increase in its quarterly distribution, as the midstream energy company outlined growth plans anchored in major US shale basins.
The partnership reported earnings per share of $1.17 for the fourth quarter of 2025, surpassing the consensus estimate of $1.05 by 11%. Revenue reached $3.25 billion, modestly above analyst projections of $3.23 billion. The stock rose 1.01% in pre-market trading following the announcement, according to Investing.com.
MPLX declared a quarterly distribution of $1.0765 per common unit, representing a 12.5% increase from the prior year. The distribution for the quarter is covered 1.3 times by cash flow, while full-year 2025 distribution coverage stood at 1.4 times, according to the company's earnings release. For the full year, MPLX returned $4.4 billion to unitholders through distributions and buybacks.
Maryann Mannen, MPLX chairman, president and chief executive officer, said the company's performance reflects its strategy of growing natural gas and natural gas liquids (NGL) infrastructure while maintaining strong shareholder returns. "In 2025, we invested to grow our natural gas and NGL value chains and returned more than $4 billion to unitholders," Mannen stated in the earnings release.
For 2026, MPLX guided to mid-single digit adjusted EBITDA growth, supported by a $2.4 billion organic growth capital program. Total capital spending for 2026 is projected at $2.7 billion, including $300 million for maintenance expenditures. The partnership ended 2025 with a leverage ratio of 3.7 times, below its target range of 4.0 times.
The growth strategy focuses on two primary basins: the Permian and Marcellus. Approximately 90% of the 2026 growth capital will be directed toward natural gas and NGL services. Key projects include the Secretariat I gas processing plant, which began commissioning in January 2026, and Harmon Creek III, a 300 million cubic feet per day processing plant in the Northeast expected to come online in the third quarter.
MPLX also disclosed new investments, including Secretariat II, a 300 MMcf/d gas processing plant in the Permian basin slated for service in the second half of 2028, and an expansion of the Marcellus Gathering System with over 30 miles of new pipelines expected in the first half of 2028.
Full-year 2025 results showed net income attributable to MPLX of $4.9 billion and adjusted EBITDA of $7.0 billion. Net cash provided by operating activities totaled $5.9 billion, while distributable cash flow reached $5.8 billion and adjusted free cash flow was $1.0 billion, according to the earnings announcement.
The midstream sector has faced pressure from volatile energy prices and shifting demand patterns, but MPLX's diversified portfolio across crude oil, refined products, natural gas and NGLs has provided stability. The company maintains a 52-week trading range of $42.03 to $57.16, with 14 analysts rating it a buy or strong buy compared to five hold ratings, according to market data.
Looking ahead, MPLX's pipeline of projects includes multiple large-scale infrastructure developments spanning through 2029, including the Blackcomb Pipeline connecting Permian supply to Gulf Coast markets and the Eiger Express Pipeline from the Permian to Katy, Texas. These investments are designed to capitalize on growing demand for natural gas exports and petrochemical feedstocks along the US Gulf Coast.