MPLX LP (MPLX
) is a master limited partnership formed by Marathon Petroleum Corp. (MPC) to own, operate, develop and grow its midstream fee based assets. It owns and operates a network of pipeline systems that include approximately 962 miles of common carrier crude oil pipelines and approximately 1,819 miles of common carrier product pipelines, five storage facilities (Crude oil and product) and a barge dock in nine states. Based on our analysis, MPLX can grow its footprint substantially (3-5 times) over the next five plus years though accretive acquisitions from its parent company MPC, organic growth projects around existing footprint and new projects' development. In addition, MPLX structures its contracts on a fee basis and strips out commodity pricing exposure from its cash flow. Hence, we believe that MPLX represents an attractive growth opportunity at a relatively low risk. (Gilad Shany)
From Baron Funds' fourth quarter letter.