Image Source: PexelsMPLX (MPLX) is a partnership that owns both pipelines and gathering and processing assets with extensive holdings in the Appalachian region.The asset base is made up of pipeline assets dropped down from Marathon Petroleum, its sponsor, and gathering and processing assets from MarkWest, which it acquired in 2015. MPLX also acquired Andeavor Logistics in July 2019.MPLX GP LLC acts as the general partner of MPLX LP.The company was incorporated in 2012 and is headquartered in Findlay, Ohio.MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.Three key data points gaugeMPLX LP or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.MPLX PriceOver the past year, MPLX LP’s share price increased about 11.6% from $32.84 to $36.66 as of Tuesday’s market close.If MPLX trades in the range of $30.00 to $45.00 this next year, its recent $36.66 share price might rise to $40.00 by next year. Of course, MPLX’s price could drop about the same $3.34 estimated amount or more.My annual upside estimate of $3.34 however, is about $0.62 under the median of one-year price targets from 17 analysts covering MPLX for brokersMPLX DividendMPLX LP has paid Quarterly dividends since February 14, 2013. MPLX’s most recent Q dividend of $0.85 was paid on November 13, 2023, to shareholders of record on November 2nd. The forward-looking $3.40 annual dividend yields 9.27% at Tuesday’s $36.66 share price.EQNR ReturnsTo put it all together, add the estimated annual dividend of $3.40 to the price upside of $3.34 to find a $6.74 gross gain.At Tuesday’s $36.66 share price, a little over $1000 would buy 27 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us a little over $0.37 per share.Subtracting that likely $0.37 brokerage cost from the $6.74 gross gain produces a net gain of $6.37 X 27 shares = $171.99 for a 17.3% estimated net gain.You might choose to pounce on MPLX LP. It is an 11-year-old Ohio, Oil and Gas Logistics outfit. Furthermore, the estimated $92.70 dividend income from $1k invested is over 2.5 times greater than MPLX’s $36.66 single share price.The exact track of the MPLX LP’s ongoing future price and dividend is yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Equinor (EQNR)
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