Energy Transfer vs. MPLX: Which Midstream Stock Has an Edge?

As global energy consumption rises, limited partnerships like Energy Transfer LP ET and MPLX LP MPLX support conventional energy needs while increasingly advancing cleaner technologies and carbon-reduction strategies, making them vital to both current systems and the transition to a more sustainable future.

Energy Transfer is a diversified midstream partnership with operations spanning natural gas, NGLs, crude oil, refined products, terminalling, storage and related services in the United States.  MPLX LP is a master limited partnership engaged in providing a wide range of midstream energy services, including fuel distribution solutions.

Let's delve deeper to find out which stock between ET and MPLX is better positioned for sustainable growth.

The Case for ET

Energy Transfer gains from a largely fee-based model and a broad natural gas, NGL and crude network that support recurring cash generation. Rising data-center power demand is extending long-term transportation commitments. 

It is using its natural gas network to serve incremental electricity demand through laterals, compression and targeted expansions. Existing agreements include natural gas supply to Oracle data centers, Nexus’ AI campus and Entergy Louisiana. ET's integrated Permian-to-Gulf-Coast infrastructure gives it significant leverage to rising NGL production and international demand. 

Management’s 2026 plan combines a larger growth backlog with contracted projects and stated return thresholds. The partnership is also advancing Desert Southwest, Springerville and the fully subscribed Nederland export expansion. Management raised 2026 adjusted EBITDA guidance to $18.8-$19.1 billion and expects $5.6-$5.9 billion of growth capital. It says most major projects are backed by long-term commitments and are expected to generate mid-teen returns, supporting earnings growth beyond the current year.

Yet, commodity volatility still affects certain margins and producer-driven activity. The partnership also carries execution risk as its larger capital program advances several major projects. Cash flow remains dependent on operating subsidiaries, while customer concentration and competition can affect precontracting, utilization and returns. 

Management continues to target a long-term annual distribution growth rate of 3% to 5%, framing growth within a disciplined capital approach that can be effective during weaker commodity or capital market conditions.

The Case for MPLX

MPLX’s principal strength lies in the quality and strategic location of its infrastructure. The partnership operates an extensive portfolio of crude oil, refined-products, natural gas and NGL assets across major U.S. producing regions, with significant exposure to the Permian and Marcellus basins. Its long-lived assets and extensive commercial relationship with Marathon Petroleum support stable, largely fee-based cash flows and limit direct exposure to commodity-price volatility.

New capacity is entering service across the Permian and Marcellus, while increased ownership interests in the BANGL and Matterhorn pipelines strengthen MPLX’s integrated wellhead-to-Gulf Coast network. Management expects adjusted EBITDA to grow at a mid-single-digit rate in 2026, followed by stronger growth in 2027 as recently completed projects ramp up. Cash flows from existing operations and new projects are also expected to support distribution increases of 12.5% in both 2026 and 2027.

However, MPLX’s expanded capital program increases execution and funding requirements. Distribution coverage could remain under pressure as capital spending rises, while higher leverage and elevated interest expenses may constrain financial flexibility. Project delays, cost overruns or slower-than-expected volume growth could weaken anticipated returns. Lower crude pipeline throughput, rising operating expenses and residual commodity-price exposure may also temper earnings growth. Moreover, MPLX’s close commercial relationship with Marathon Petroleum creates customer-concentration risk, leaving its results partly dependent on the operating requirements and strategic priorities of its parent.

Estimates for ET and MPLX    

The Zacks Consensus Estimate for ET’s 2026 revenues implies a 41% increase, and that for EPS suggests a 37.2% year-over-year increase.  EPS estimates for 2026 have moved 15.3% north in the last 30 days. It has a Growth Score of A. The expected long-term earnings growth rate is pegged at 17.2%.

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The Zacks Consensus Estimate for MPLX’s 2026 revenues implies a 1.7% increase, and that for EPS indicates a 11.2% decrease. The consensus estimates for 2026 earnings rose 0.7% in the last 30 days. The company has a Growth Score of D. The expected long-term earnings growth rate is pegged at 2.5%.

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Price Performance of ET and MPLX

ET shares have gained 30% year to date, while MPLX shares have gained 11.7% in the same time. 

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Are ET and MPLX Shares Expensive?

ET is trading at a trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) of 9.58X, lower than its median of 9.87 over the past three years. MPLX’s trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) sits at 11.65X, higher than its median of 10.61X over the past three years.

ET is cheaper than MPLX presently.

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Conclusion

Fee-based contracts, rising power demand, contracted infrastructure projects and disciplined distributions support cash flow and long-term growth visibility for Energy Transfer.

Integrated gas and NGL expansion, rising utilization, durable cash generation and distribution growth support MPLX’s long-term investment case for unitholders.

Though both ET and MPLX carry a Zacks Rank #3 (Hold), ET edges MPLX with respect to valuation, price appreciation, analysts’ optimism and growth projections.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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