MPLX LP (MPLX) Shares Fall 22% After Reporting Latest Financial Results

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Shares of MPLX LP (NYSE:MPLX) are down huge today after the company released the full-year and fourth quarter financial results. Evidently these results surprised investors to the downside. Net income attributable to the company came in at just $18 million for the quarter, which is a drastic drop over last year’s reported $29 million. For the year though, net income increased by $35 million to $156 million. Growth expenditures for the year raised from $51 million in 2014 to $249 million in 2015.

‘MPLX’s successful combination with MarkWest creates a diversified, large-cap MLP with compelling long-term growth opportunities,’ said Gary R. Heminger, MPLX chairman and chief executive officer. ‘The combination expands our asset base and positions us to continue supporting natural gas liquids development in North America, which provides significant future earnings potential. Our commitment to a strong balance sheet, fee-based cash flows, and supportive sponsor position us for sustainable growth.’

‘The inland marine business has high-quality assets and is strategically located in key markets. Essentially all of its operations support the movement of crude oil and refined products for MPC,’ said Heminger. ‘The cash flows generated from the marine business will further diversify the partnership’s earnings stream.’ Heminger emphasized the fee-for-capacity arrangement associated with these assets and the highly predictable earnings they are expected to generate for the partnership.”

From a total of 5 analysts covering MPLX LP (NYSE:MPLX) stock, 4 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 80% of the ratings are positive. The highest target price is $55 while the lowest target price is $37. The mean of all analyst targets is $47.80 which is 112.35% above today’s ($22.51) stock price. MPLX LP was the topic of 8 analyst reports since October 20, 2015 according to the firm StockzIntelligence Inc. Credit Suisse initiated shares on December 22 with a “Neutral” rating. Ladenburg Thalmann initiated MPLX stock in a recent report from November 30 with a “Buy” rating.

The institutional sentiment decreased to 1.02 in Q2 2015. It’s down 0.21, from 1.23 in 2015Q2. The ratio is negative, as 24 funds sold all their MPLX LP shares they owned while 34 reduced their positions. 26 funds bought stakes while 33 increased their total positions. Institutions now own 24.41 million shares which is 10.66% more than the previous share count of 22.05 million in 2015Q2.

C V Starr & Co Inc holds 6.05% of its total portfolio in MPLX LP, equating to 30,000 shares. Samson Capital Management Llc owns 163,366 shares representing 4.57% of their total US portfolio. Moreover, Heronetta Management L.P. has 2.37% of their total portfolio invested in the company, equating to 107,430 shares. The Tennessee-based Chickasaw Capital Management Llc has a total of 1.89% of their portfolio invested in the stock. Nbw Capital Llc, a Massachusetts-based fund reported 160,598 shares owned.

Since September 14, 2015, the stock had 1 buy, and 0 selling transactions for a total of $182,680 in net activity. Wilson C. Richard bought 4,000 shares worth $182,680.

MPLX LP is a fee-based master limited partnership formed by Marathon Petroleum Corporation (MPC) to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon products. The company has a market cap of $2.36 billion. The Company’s assets include interest in a network of common carrier crude oil and product pipeline systems and storage assets in the Midwest and Gulf Coast regions of the United States. It has 12.32 P/E ratio. It has interest in a butane cavern in Neal, West Virginia with one million barrels of natural gas liquids storage capacity.

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