MPLX (MPLX) is positioned for stronger growth in 2027 as several projects start operations, while its Marcellus and Permian assets, higher distributions and new infrastructure investments should support longer-term gains, RBC Capital Markets said in a note Thursday.
RBC said it expects Secretariat I, Harmon Creek III, Blackcomb, Titan and BANGL to drive meaningful adjusted earnings before interest, taxes, depreciation, and amortization growth in 2027 as the projects ramp up.
MPLX should achieve its 2027 growth plans through existing projects without needing acquisitions, as the company plans to support 12.5% distribution increases in both 2026 and 2027 while continuing to fund projects expected to generate strong returns, the investment firm said.
The planned Solitude Pipeline System is expected to add another long-term Permian growth opportunity, with initial capacity expected in late 2029 and additional capacity in 2030, according to the note.
RBC maintained its outperform rating for MPLX and raised its price target to $64 from $60.
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