2 Reasons This U.S. Midstream Oil Giant Is Set to Soar

U.S. oil industry’s “middlemen” look primed to outperform… [Turn Your Images On] --------------------------------------------------------------- Editor’s Note: Markets are closed today to observe the Good Friday holiday. Read on to see why this oil stock should be at the top of your list when markets reopen for normal business hours on Monday morning. --------------------------------------------------------------- [2 Reasons This U.S. Midstream Oil Giant Is Set to Soar]( - Midstream oil companies are critical in delivering oil products to market in a timely fashion. - In previous periods of high inflation, midstream stocks outperformed investment-grade and high-yield bonds. - Today’s 86-rated Power Stock operates a massive fuel transportation network in the Midwest and on the West Coast. [Turn Your Images On] [Matt Clark, Chief Research Analyst]( After OPEC’s oil production cut, I immediately started researching ways we could use our proprietary Stock Power Ratings system to position ourselves for success. And that led me to midstream oil stocks for two reasons. (If you want a rundown of what OPEC did, check out my essay in yesterday’s Stock Power Daily [here]( There are three main stages of oil and gas operations: Upstream, midstream and downstream. Each stage plays a critical role in getting oil from the ground and to the market. And with OPEC scaling back oil production by more than 1 million barrels per day, U.S. companies need to step up to meet demand. Midstream oil companies focus on processing, storing and marketing oil and natural gas. These are the companies that deliver gas from the refinery to the fuel pump. But the biggest reason I landed on midstream is a recent study from Goldman Sachs: [Turn Your Images On] [(Click here to view larger image.)]( As you can see from this graphic, stocks with a focus on midstream oil and gas crushed investment-grade and high-yield bonds during times of high inflation. This is important as high inflation persists in the U.S. Today’s Power Stock operates an oil transportation system that goes from refineries in Texas and Louisiana all the way to customers in Pennsylvania and Michigan. It operates terminals in 23 states. MPLX LP (NYSE: MPLX) scores a “Strong Bullish” 86 out of 100 in our proprietary Stock Power Ratings system. That means we expect it to beat the broader market by 3X in the next 12 months. It also comes with a great forward dividend yield (I’ll tell you more about that in a bit). [Turn Your Images On] [(Click here to view larger image.)]( MPLX works in partnership with its parent company, Marathon Petroleum Corp. (NYSE: MPC) — the third-largest oil and gas company in the U.S., based on 2022 revenue. --------------------------------------------------------------- [Turn Your Images On]( [This North Dakota Miner Could Be the No. 1 stock of 2023]( Warren Buffett, Ray Dalio and Goldman Sachs all agree. Now’s the time to bet BIG on oil. And Adam O’Dell just revealed the details on his No. 1 oil stock for 2023. An oil company he believes could hit 100% gains in the next 100 days. And beat the gains of Exxon, Marathon and Occidental. [Click here to watch.]( --------------------------------------------------------------- MPLX Stock: Strong Bullish Momentum and Growth MPLX just closed out a [remarkable 2022](. Here are two high points: - Reported total revenue of $11.6 billion for the year — a 16% increase over its revenue in 2021! - Its net income for the year was $3.9 billion — $800 million more than it recorded in 2021. These revenue numbers show why MPLX stock scores an 81 on our growth factor in Stock Power Ratings. MPLX is also a strong quality stock, scoring a 71 on that factor. Its returns on assets, equity and investment outpace its midstream energy peers. The company’s gross margin is 54.6% compared to its peer average of 36.9%. The stock also boasts strong momentum: [Turn Your Images On] [(Click here to view larger image.)]( MPLX stock price has increased 13.6% over the last 12 months, scoring an 82 on our momentum factor. For comparison, its midstream energy peers have averaged a 0.3% loss over the same time. The stock is currently trading just 2.1% off its 52-week high. I’m confident it will reach that mark … and soar higher. MPLX stock scores an 86 overall on our proprietary Stock Power Ratings system. That means we’re “Strong Bullish” and expect it to beat the broader market by at least 3X in the next 12 months. Bonus: MPLX comes with an 8.9% forward dividend yield, netting shareholders $3.10 per share per year! American oil and gas companies are under pressure to produce and deliver more oil after OPEC tightened production and exports. It means American companies will have to find and bring more oil products to market, quickly. MPLX has a strong track record of getting oil to the market. That makes it a strong contender for your portfolio. Stay Tuned: The Housing Market’s 2023 Potential The U.S. housing market is starting to heat up again, even with interest rates at their highest level since 2008. I’ll dive into how we can use Stock Power Ratings to capitalize on this shift in Monday’s Stock Power Daily. Stay tuned… Safe trading, Matt Clark, CMSA® Chief Research Analyst, Money & Markets P.S. Today’s Power Stock has a lot of potential as oil prices surge higher, but if you want the best ways to follow what our chief investment strategist, Adam O’Dell, is calling the “Oil Super Bull,” you need to check out his presentation. This is a broad mega trend that is going to last for years (if not decades), and Adam is targeting energy stocks with 10X profit potential in a matter of years for his premium subscribers. [Click here to see how you can join him]( in 10X Stocks and start investing in his high-conviction recommendations now. --------------------------------------------------------------- Check Out More From Stock Power Daily: - [OPEC PUT THE U.S. IN A PICKLE — HOW TO PROFIT]( - [THE BIGGEST MONEY IN THE OIL SECTOR SAYS “PREPARE”]( - [THE ENERGY WAR IS BULLISH FOR OIL AND RENEWABLE STOCKS]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](