MPLX LP (NYSE:MPLX) is included among
Dividend Contenders List: Top 20 Stocks.
On January 5, Raymond James analyst Justin Jenkins downgraded MPLX LP (NYSE:MPLX) to Market Perform from Outperform, without assigning a price target.
The move came as the firm reassessed its ratings across the midstream group heading into 2026. Jenkins noted that the sector enters the new year with solid momentum, but said strong and “constructive” share performance in 2025 means the focus now shifts away from broad trends and toward execution.
Raymond James said investors are increasingly zeroed in on how individual midstream companies turn favorable macro conditions into tangible, sustainable cash flow.
The company is on firm ground. It recently bought a sour gas-treating business in the Delaware Basin, Northwest Midstream, in a $2.4 billion deal. It also picked up the remaining 55% stake in the BANGL pipeline for $715 million. That pipeline links the Permian Basin to the Gulf Coast.
These moves are about more than scale. They put MPLX LP in a strong position to benefit from the surge in data center development across Texas. Data centers consume massive amounts of power to keep servers and cooling systems running nonstop, and that is driving steady growth in natural gas demand. MPLX recently signed a letter of intent with MARA Holdings to supply natural gas from the Delaware Basin to power MARA’s electricity plants and data centers in West Texas.
At the same time, MPLX LP (NYSE:MPLX) is cleaning up its portfolio. The company is selling noncore gathering and processing assets in the Rockies, with plans to raise about $1 billion from those divestitures.
Taken together, 2025 marked an important shift for MPLX. The company invested roughly $3.5 billion in acquisitions, broadening its cash flow base beyond its long-standing ties to Marathon Petroleum. Those investments are expected to lift cash flows over time and provide room for continued dividend growth and attractive yields in the years ahead.
While we acknowledge the potential of MPLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
