MPLX LP Has Hiked Its Dividend For 10+ Straight Years
Crude oil prices can be volatile, as we’re seeing right now. That said, there is a corner of the energy market that isn’t really fazed by the ups and downs of crude oil and gas prices.
Energy Master Limited Partnerships (MLPs) like MPLX LP (NYSE:MPLX) are in the business of managing the storage and transportation of oil or natural gas. They don’t need to worry about the price of crude oil because they don’t need to drill new wells.
The best part is, even when commodity prices are deep in the doldrums, some of these partnerships still deliver big returns. That’s because they get a large part of their revenue from fixed fees. It’s also why energy Partnerships like MPLX aren’t as sensitive to oil price shocks as other companies in the energy sector.
Moreover, they don’t even have to pay a penny in taxes at the company level as long as they earn at least 90% of their income from activities involving the transportation of commodities in the U.S.
What do they do with that extra cash? MLPs are required by law to distribute most of their profits to investors.
And that brings us to MPLX, an unsung hero of the oil patch. It basically operates like a toll bridge that moves oil and gas from the wellhead to refineries. And it gets paid whether the drillers make money or not.
MPLX is an oil and gas midstream company, formed by oil and gas behemoth Marathon Petroleum Corporation (NYSE:MPC). The Findlay, Ohio-based company owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. (Source: “Operations,” MPLX LP, last accessed August 4, 2026.)
Its assets, which are in key U.S. supply basins, include:
- A network of crude oil and refined product pipelines
- An inland marine business
- Storage caverns
- Refinery tanks, docks, loading racks, and associated piping
- Crude and light-product marine terminals
- Crude oil and natural gas gathering systems and pipelines
- Natural gas and natural gas liquid (NGL) processing and fractionation facilities
Q2 Net Income of $1.1B and Net Cash Provided By Operating Activities of $1.7B
MPLX reported another strong quarter with net income increasing to $1.1 billion, compared to $1.05 billion in the second quarter of 2025. (Source: “MPLX LP Reports Second-Quarter 2026 Financial Results,” MPLX LP, August 4, 2026.)
During the quarter, MPLX generated $1.7 billion in net cash provided by operating activities, $1.4 billion of distributable cash flow, and adjusted free cash flow of $668 million.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $1.8 billion, compared with $1.7 billion for the second quarter of 2025.
Commenting on the results, Maryann Mannen, Chairman, President, and CEO said, “Our second quarter operational performance reflects the consistent progression of our strategic initiatives, as we complete and integrate growth projects across our natural gas and NGL value chains to meet growing global demand.
Mannen added, “As additional projects enter service in the second half of the year, and utilizations increase, MPLX remains positioned to deliver mid-single digit adjusted EBITDA growth.”
Q2 Payout Jumps 12%+ to $1.07/ Unit
Strong second quarter cash flow generation allowed MPLX to return $1.1 billion of capital to unitholders and repurchase $50 million worth of units. The $1.1 billion of capital translates into a quarterly distribution of $1.0765 per unit, a 12% increase over the $0.9565 paid out in the same prior year period.
The quarterly payout works out to an annual distribution of $4.31 per unit, for a forward distribution of approximately 7.5%. (Source: “Stock Information,” MPLX LP, last accessed August 5, 2026.)
Excluding the special distribution paid out in 2021, MPLX has increased its annual distribution every year since 2012.
MPLX Units Hits Record High
Admittedly, a distribution yield of 7.5% is a little low for the kind of companies we profile here at IncomeInvestors.com, but in this case, it’s because the company’s units continue to climb steadily higher.
And, since dividend yield and stock price have an inverse relationship, it’s never a bad idea to find a company with strong share price appreciation and a reliable, growing, high yield dividend.
On August 5, the day after MPLX announced strong second quarter results, its units hit a record high of $60.95. This puts MPLX units up approximately:
- 11% over the last six months
- 17% year to date
- 28% on an annual basis
A record high is great, but Wall Street thinks MPLX units will hit fresh highs over the coming quarters, with analyst’s providing a 12-month share price forecast range of $60.00 to $73.00 per share. This points to potential gains of up to 23%.
Chart courtesy of StockCharts.com
The Lowdown on MPLX LP
MPLX LP continues to be a great midstream stock reporting strong free cash flow, which helps support its reliable, growing ultra-high yield dividend. The outlook remains bright too, with analyst’s calling for strong revenue and earnings growth, which should help see MPLX units hit additional new highs.