5 Energy Stocks to Buy According to Blackstone Group

2. MPLX LP (NYSE:MPLX)

Number of Hedge Fund Holders: 8

Percentage of Blackstone Group’s Portfolio: 4.90%

MPLX LP (NYSE:MPLX) is a subsidiary of Marathon Petroleum Corporation, owning midstream energy infrastructure and logistics assets in the United States. Blackstone Group owns more than 66 million shares of MPLX LP (NYSE:MPLX) as of Q4 2021, worth $1.95 billion, representing 4.90% of the fund’s 13F portfolio. 

With a forward yield of 8.88%, MPLX LP (NYSE:MPLX) declared on January 25 a $0.705 per share quarterly dividend, in line with previous. The dividend was paid on February 14, to shareholders of record on February 4. 

MPLX LP (NYSE:MPLX) posted its fourth quarter results on February 2, announcing earnings per share of $0.78, topping estimates by $0.04. Revenue over the period jumped 21.57% year-on-year to $2.73 billion, surpassing estimates by $283.32 million. 

On January 20, Barclays analyst Theresa Chen raised the price target on MPLX LP (NYSE:MPLX) to $35 from $34 and kept an Overweight rating on the shares. She expects “more variability” across refining results in Q4, but has a “generally positive outlook for the group in 2022”. 

Chiron Investment Management is a significant shareholder of the company, with 539,782 shares worth roughly $16 million. Overall, 8 hedge funds in the Q4 database of Insider Monkey were bullish on MPLX LP (NYSE:MPLX), with combined stakes equaling $50.3 million.

Here is what Miller/Howard Investments has to say about MPLX LP (NYSE:MPLX) in its Q1 2021 investor letter:

“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”