MPLX LP (NYSE:MPLX) has been recognized as one of the 15 Blue Chip Dividend Stocks to Build a Passive Income Portfolio. JPMorgan recently adjusted its price target on MPLX LP, downgrading it to Neutral from Overweight and maintaining a $57 price target. The firm noted that the stock has already outperformed its peers in 2025, leaving limited room for further growth. This prompted the downgrade as the risk/reward ratio appeared more balanced.
Despite this, MPLX LP remains focused on expanding its Permian-to-Gulf Coast network by investing in long-distance pipelines to transport natural gas and natural-gas liquids from the Permian Basin to export facilities along the Gulf Coast. These developments are expected to enhance the partnership’s cash generation significantly.
MPLX LP’s energy asset base, which includes oil pipelines, gas processing plants, and storage terminals, plays a vital role in the company’s cash flow generation. The regulated rate structures and long-term contracts contribute to the steady cash flow, with the company reporting $4.3 billion in cash flow in the first nine months of the year, comfortably covering its dividend payments. Additionally, MPLX LP has a track record of consistently increasing dividends for the past 12 years.
As a master limited partnership owning a range of midstream energy assets, MPLX LP offers investors exposure to the energy sector. While the potential for MPLX LP as an investment is acknowledged, there are other options to consider. Certain AI stocks may offer greater upside potential with lower downside risk. For those interested in exploring undervalued AI stocks that could benefit from current economic trends, a free report on the best short-term AI stock is available.
In conclusion, MPLX LP continues to focus on expanding its network and generating steady cash flow through its energy assets. While the stock may have limited growth potential according to JPMorgan, investors can explore other opportunities in the market. For more information on high-quality dividend stocks and those that outperform the S&P 500, check out the respective articles linked above. Disclosure: None.
