MMP Stock Recent News

Magellan Midstream Partners (NYSE: MMP ) stock jumped over 15% over the weekend after ONEOK (NYSE: OKE ) said it will buy the pipeline company for $18.8 billion. ONEOK is offering $25 per share in cash, plus stock, to deliver $67.20 per MMP share.

MMP is set to raise its refined product tariffs by a robust 11% in July. This along with strong blending margins set the company up for nice growth in 2023.

“Our favorite holding period is forever” – Warren Buffett. Stock prices move in and out of favor from time to time; our focus is on growing our income.

Magellan Midstream is seeing record transportation volumes and plans a tariff increase in July. It's more future-proof than some may believe and is returning capital to unitholders via generous distributions and buybacks.

Both MMP and MPLX are sleep well at night high yield equities. While MMP has a higher credit rating, MPLX has a cheaper valuation.

MMP has been an income investor's dream with a yield of 7.78% and 21 years of distribution growth which has led to a 1,400% increase in the quarterly distribution since inception. 85% of MMP's revenue is backed by fee-based contracts, which help secure its Adjusted EBITDA, DCF, and distributions.

Magellan Midstream Partners, L.P. is known for being a reliable income investment, although that alone does not make them a good choice. Somewhat disappointingly, they failed to materially benefit from the very strong operating conditions during 2022.

MMP has a nice safe distribution that should continue to slowly rise. Growth in 2023 should be driven by tariff increases.

Warren Buffett advises us to ignore the “prophets of doom”. Mr. Market has you glued to a repeated sequence of government reports that no one cared about three years ago.

MMP just released Q4 and FY2022 results. MMP management provided two very important updates that significantly impact the investment thesis.