FINDLAY, Ohio, May 8, 2019 /PRNewswire/ --
- Reported first quarter net income of $503 million and adjusted EBITDA of $930 million, which provided 1.41x distribution
coverage and resulted in 3.9x leverage
- Logistics & Storage segment income from operations of
$480 million and adjusted EBITDA of
$559 million driven by strong results
from the underlying base business
- Gathering & Processing segment income from operations of
$198 million and adjusted EBITDA of
$371 million driven by record
gathered, processed, and fractionated volumes
- Signed letter of intent to participate in Wink-to-Webster crude pipeline in the Permian
Basin
- Announced agreement to acquire Andeavor Logistics
MPLX LP (NYSE: MPLX) today reported first quarter 2019 net
income attributable to MPLX of $503
million compared with $421
million for the first quarter of 2018. Adjusted earnings
before interest, taxes, depreciation, and amortization (EBITDA) was
$930 million compared with
$760 million in the first quarter of
2018. The significant year-over-year increase was driven by strong
performance in the base business of both segments as well as
dropdowns in Logistics and Storage (L&S). L&S reported
segment income from operations of $480
million and adjusted EBITDA of $559
million for the quarter, up $95
million and $122 million,
respectively, versus the first quarter of last year. Gathering and
Processing (G&P) reported segment income from
operations of $198 million and
adjusted EBITDA of $371 million for
the quarter, up $26 million and
$48 million, respectively, on a
year-over-year basis.
The company also announced that MPLX and Andeavor Logistics LP
(NYSE: ANDX) have entered into a definitive merger agreement
whereby MPLX will acquire ANDX in a unit-for-unit exchange. "This
merger creates a leading, large-scale, diversified midstream
company anchored by fee-based cash flows," said Gary R. Heminger, chairman and chief executive
officer. "The combined entity will have an expanded geographic
footprint with enhanced long-term growth opportunities. We are
confident about the midstream growth and value-creation
opportunities that exist across this combined platform in the best
basins in the U.S."
MPLX made progress on its strategy of capturing the full
midstream value chain and enhancing its cash flow stability by
announcing continued development of long-haul pipelines that meet
growing market needs. The company signed a letter of intent to
partner in the Wink-to-Webster
crude oil pipeline in the Permian Basin and it continues to
progress Permian natural gas and NGL pipelines. MPLX, as operator,
also completed an open season on the proposed reversal of the
Capline pipeline. These projects are expected to increase the flow
of crude oil and other hydrocarbons to the Texas and Louisiana Gulf Coast markets, where
the partnership plans to develop and increase export
capabilities.
"Our decision to move forward on these projects underscores our
commitment to allocate more of our growth capital to the Logistics
and Storage segment and is aligned with our long-term strategy of
enhancing the return profile of our company," added Heminger.
During the quarter, MPLX generated $618
million in net cash provided by operating activities and
distributable cash flow of $757
million, which provided 1.41x coverage and resulted in 3.9x
leverage. The company did not issue any public equity during the
first quarter, maintaining its commitment to a strategy of
self-funding the equity portion of its capital investments. MPLX
also announced its 25th consecutive distribution increase to
$0.6575 per common unit, a 6.5
percent increase over the prior year first quarter.
Financial Highlights
|
|
Three Months
Ended
March 31
|
(In millions,
except per unit and ratio data)
|
|
2019
|
|
|
2018
|
Net income
attributable to MPLX
|
|
$
|
503
|
|
|
|
$
|
421
|
|
Adjusted EBITDA
attributable to MPLX(a)
|
|
930
|
|
|
|
760
|
|
Net cash provided by
operating activities
|
|
618
|
|
|
|
450
|
|
Distributable cash
flow ("DCF")(a)
|
|
757
|
|
|
|
619
|
|
Distribution per
common unit(b)
|
|
$
|
0.6575
|
|
|
|
$
|
0.6175
|
|
Distribution coverage
ratio(c)
|
|
1.41x
|
|
|
|
1.29x
|
|
Consolidated debt to
adjusted EBITDA(d)
|
|
3.9x
|
|
|
|
3.8x
|
|
|
|
|
|
|
|
(a) Non-GAAP
measure calculated before distributions to preferred unitholders.
See reconciliation below.
|
(b)
Distributions declared by the board of directors of MPLX's general
partner.
|
(c)
Non-GAAP measure. See calculation below.
|
(d)
Calculated using face value total debt and LTM pro forma adjusted
EBITDA, which is pro forma for acquisitions. See reconciliation
below.
|
Segment Results
|
|
|
|
|
|
(In
millions)
|
|
Three Months
Ended
March 31
|
Segment income
from operations (unaudited)
|
2019
|
|
|
2018
|
Logistics and
Storage
|
$
|
480
|
|
$
|
385
|
Gathering and
Processing
|
|
198
|
|
|
172
|
|
|
|
|
|
|
Segment adjusted
EBITDA attributable to MPLX LP (unaudited)
|
|
|
|
|
|
Logistics and
Storage
|
|
559
|
|
|
437
|
Gathering and
Processing
|
$
|
371
|
|
$
|
323
|
|
|
|
|
|
|
Logistics & Storage
L&S segment income from operations and adjusted EBITDA for
the first quarter of 2019 increased by $95
million and $122 million,
respectively, compared with the same period in 2018. The increase
was primarily due to the February 1,
2018 dropdown of certain refining logistics assets and the
fuels distribution service business, as well as the continued solid
performance of the underlying base business.
Total pipeline throughputs were 3.4 million barrels per day in
the first quarter, an increase of 11 percent versus the same
quarter last year. The average tariff rate was $0.67 per barrel for the quarter. Terminal
throughput was 1.4 million barrels per day for the quarter, which
is consistent with the prior-year quarter.
MPLX provided updates on several previously announced Permian
pipeline projects. The company signed a letter of intent to partner
in the Wink-to-Webster crude oil pipeline. The pipeline will
have a planned capacity of 1.5 million barrels per day and is
expected to begin operations in the first half of 2021. The
partnership's previously announced Whistler natural gas and BANGL
natural gas liquids pipeline projects are both in the documentation
phase. MPLX expects to make final investment decisions on both
pipelines in the near term.
Gathering & Processing
G&P segment income from operations and segment adjusted
EBITDA increased by $26 million and
$48 million, respectively, for the
first quarter of 2019 compared with the same period in 2018. The
increase was primarily due to record gathered, processed and
fractionated volumes partially offset by decreased pricing on
product sales.
- Gathered volumes: 5.0 billion cubic feet per day in the first
quarter of 2019, a 19 percent increase versus the first quarter of
2018
- Processed volumes: 7.8 billion cubic feet per day in the first
quarter of 2019, an 18 percent increase versus the first quarter of
2018
- Fractionated volumes: 494 thousand barrels per day in the first
quarter of 2019, a 17 percent increase versus the first
quarter of 2018
Regionally, the company continued to experience significant
growth in the Marcellus and Utica
basins. Gathered volumes averaged 3.4 billion cubic feet per day
(bcf/d) for the quarter, a 26 percent increase versus the
first quarter of 2018. Processed volumes averaged 6.0 bcf/d, an 18
percent increase versus the same quarter last year as volumes at
the Sherwood and Harmon Creek
complexes ramped during the quarter. Fractionated volumes averaged
464 thousand barrels per day, a 17 percent increase versus the
first quarter of 2018. The increase was primarily the result of
higher volumes at the recently expanded Hopedale Complex.
Consistent with its strategy of constructing assets on a
just-in-time basis, MPLX expects to complete two additional
processing plants at Sherwood in
2019, adding 400 million cubic feet per day of incremental
capacity.
In the Southwest, gathered volumes averaged 1.6 bcf/d for the
first quarter, a 7 percent increase versus the first quarter of
2018. Processed volumes averaged 1.6 bcf/d for the quarter, a 21
percent increase versus the first quarter of 2018. The increase was
primarily due to higher volumes in the Delaware Basin.
To support additional growth in the Permian Basin, MPLX has
three additional plants under various stages of development. Upon
completion, the company will have approximately 1.0 billion cubic
feet per day of processing capacity, leading to significant liquids
production in the basin.
Financial Position and Liquidity
As of March 31, 2019, MPLX had $93
million in cash, $1.8 billion
available through its bank revolving credit facility expiring in
July 2022, and $1.0 billion available through its credit
facility with MPC.
The company's $2.9 billion of
available liquidity, its distribution coverage and its access to
the capital markets should provide it with sufficient flexibility
to meet its day-to-day operational needs and continue investing in
organic growth opportunities. The company's leverage ratio was 3.9x
at March 31, 2019. MPLX remains committed to maintaining an
investment-grade credit profile and a strategy of self-funding the
equity portion of its organic growth capital needs.
Conference Call
MPLX's previously announced first-quarter 2019 earnings
conference call and webcast, which had been scheduled for
Wednesday, May 8, at 11 a.m. EDT, has been canceled. MPLX and ANDX
will hold a conference call and webcast at 8:30 a.m. EDT today to discuss the transaction
and MPLX first-quarter highlights. Interested parties may listen to
the conference call by dialing 1-888-455-2707 (confirmation number
2634753) or by visiting MPLX's website at http://www.mplx.com and
clicking on the "Events and Presentations" link in the "Investor
Center" tab or ANDX's website at http://www.andeavorlogistics.com
and clicking on the "Events and Presentations" link in the
"Investor" tab. A replay of the webcast will be available on MPLX's
and ANDX's websites for two weeks. An investor presentation will
also be available online prior to the conference call and webcast
at http://ir.mplx.com or http://ir.andeavorlogistics.com.
MPLX management will be available to answer questions about the
earnings release at the end of today's conference call. Financial
information, including earnings release and other investor-related
material, will also be available online prior to the conference
call and webcast at http://ir.mplx.com.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that
owns and operates midstream energy infrastructure and logistics
assets, and provides fuels distribution services. MPLX's assets
include a network of crude oil and refined product pipelines; an
inland marine business; light-product terminals; storage caverns;
refinery tanks, docks, loading racks, and associated piping; and
crude and light-product marine terminals. The company also owns
crude oil and natural gas gathering systems and pipelines as well
as natural gas and NGL processing and fractionation facilities in
key U.S. supply basins. More information is available at
www.MPLX.com
Investor Relations Contacts:
Kristina Kazarian (419) 421-2071
Media Contacts:
Chuck
Rice (419) 421-2521
Non-GAAP references
In addition to our financial
information presented in accordance with U.S. generally accepted
accounting principles (GAAP), management utilizes additional
non-GAAP measures to facilitate comparisons of past performance and
future periods. This press release and supporting schedules include
the non-GAAP measures adjusted EBITDA and consolidated debt to last
twelve months pro forma adjusted EBITDA, which we refer to as our
leverage ratio, distributable cash flow (DCF) and distribution
coverage ratio. The amount of adjusted EBITDA and DCF generated is
considered by the board of directors of our general partner in
approving the Partnership's cash distribution. Adjusted EBITDA and
DCF should not be considered separately from or as a substitute for
net income, income from operations, or cash flow as reflected in
our financial statements. The GAAP measures most directly
comparable to adjusted EBITDA and DCF are net income and net cash
provided by operating activities. We define Adjusted EBITDA as net
income adjusted for (i) depreciation and amortization; (ii)
provision for income taxes; (iii) amortization of deferred
financing costs; (iv) non-cash equity-based compensation; (v) net
interest and other financial costs; (vi) income from equity method
investments; (vii) distributions and adjustments related to equity
method investments; (viii) unrealized derivative gains and losses;
(ix) acquisition costs; (x) noncontrolling interest and (xi) other
adjustments as deemed necessary. In general, we define DCF as
adjusted EBITDA adjusted for (i) deferred revenue impacts; (ii) net
interest and other financial costs; (iii) maintenance capital
expenditures; (iv) equity method investment capital expenditures
paid out; and (v) other non-cash items.
The Partnership makes a distinction between realized or
unrealized gains and losses on derivatives. During the period when
a derivative contract is outstanding, we record changes in the fair
value of the derivative as an unrealized gain or loss. When a
derivative contract matures or is settled, we reverse the
previously recorded unrealized gain or loss and record the realized
gain or loss of the contract.
Adjusted EBITDA is a financial performance measure used by
management, industry analysts, investors, lenders, and rating
agencies to assess the financial performance and operating results
of our ongoing business operations. Additionally, we believe
adjusted EBITDA provides useful information to investors for
trending, analyzing and benchmarking our operating results from
period to period as compared to other companies that may have
different financing and capital structures.
DCF is a financial performance measure used by management as
a key component in the determination of cash distributions paid to
unitholders. We believe DCF is an important financial measure for
unitholders as an indicator of cash return on investment and to
evaluate whether the partnership is generating sufficient cash flow
to support quarterly distributions. In addition, DCF is commonly
used by the investment community because the market value of
publicly traded partnerships is based, in part, on DCF and cash
distributions paid to unitholders.
Distribution coverage ratio is a financial performance
measure used by management to reflect the relationship between the
partnership's financial operating performance and cash distribution
capability. We define the distribution coverage ratio as the ratio
of DCF attributable to GP and LP unitholders to total GP and LP
distributions declared.
Leverage ratio is a liquidity measure used by management,
industry analysts, investors, lenders and rating agencies to
analyze our ability to incur and service debt and fund capital
expenditures.
Forward-looking statements
This press release contains forward-looking statements within
the meaning of federal securities laws regarding MPLX LP (MPLX).
These forward-looking statements relate to, among other things, the
proposed acquisition of Andeavor Logistics LP (ANDX) by MPLX and
include expectations, estimates and projections concerning the
business and operations, financial priorities and strategic plans
of the combined entity. In accordance with "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, these
statements are accompanied by cautionary language identifying
important factors, though not necessarily all such factors, that
could cause future outcomes to differ materially from those set
forth in the forward-looking statements. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "could," "design," "estimate," "expect," "forecast,"
"goal," "guidance," "imply," "intend," "may," "objective,"
"opportunity," "outlook," "plan," "position," "potential,"
"predict," "project," "prospective," "pursue," "seek," "should,"
"strategy," "target," "would," "will" or other similar expressions
that convey the uncertainty of future events or outcomes. Such
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties and other factors, some of
which are beyond the company's control and are difficult to
predict. Factors that could cause MPLX's actual results to differ
materially from those implied in the forward-looking statements
include: the ability to complete the proposed transaction between
MPLX and ANDX on the proposed terms and timetable; the ability to
satisfy various conditions to the closing of the transaction
contemplated by the merger agreement; the ability to obtain
regulatory approvals for the proposed transaction on the proposed
terms and schedule, and any conditions imposed on the combined
entity in connection with the consummation of the proposed
transaction; the risk that anticipated opportunities and any other
synergies from or anticipated benefits of the proposed transaction
may not be fully realized or may take longer to realize than
expected, including whether the proposed transaction will be
accretive within the expected timeframe or at all; disruption from
the proposed transaction making it more difficult to maintain
relationships with customers, employees or suppliers; risks
relating to any unforeseen liabilities of ANDX; the amount and
timing of future distributions; negative capital market conditions,
including an increase of the current yield on common units; the
ability to achieve strategic and financial objectives, including
with respect to distribution coverage, future distribution levels,
proposed projects and completed transactions; adverse changes in
laws including with respect to tax and regulatory matters; the
adequacy of capital resources and liquidity, including, but not
limited to, availability of sufficient cash flow to pay
distributions and access to debt on commercially reasonable terms,
and the ability to successfully execute business plans, growth
strategies and self-funding models; the timing and extent of
changes in commodity prices and demand for crude oil, refined
products, feedstocks or other hydrocarbon-based products;
continued/further volatility in and/or degradation of market and
industry conditions; changes to the expected construction costs and
timing of projects and planned investments, and the ability to
obtain regulatory and other approvals with respect thereto;
completion of midstream infrastructure by competitors; disruptions
due to equipment interruption or failure, including electrical
shortages and power grid failures; the suspension, reduction or
termination of Marathon Petroleum Corporation's (MPC) obligations
under MPLX's and ANDX's commercial agreements; modifications to
financial policies, capital budgets, and earnings and
distributions; the ability to manage disruptions in credit markets
or changes to credit ratings; compliance with federal and state
environmental, economic, health and safety, energy and other
policies and regulations and/or enforcement actions initiated
thereunder; adverse results in litigation; other risk factors
inherent to MPLX's and ANDX's industry; risks related to MPC; and
the factors set forth under the heading "Risk Factors" in MPLX's
Annual Report on Form 10-K for the year ended Dec. 31, 2018, filed with Securities and Exchange
Commission (SEC).
Factors that could cause MPC's actual results to differ
materially from those implied in the forward-looking statements
include: the risk that the cost savings and any other synergies
from the Andeavor transaction may not be fully realized or may take
longer to realize than expected; disruption from the Andeavor
transaction making it more difficult to maintain relationships with
customers, employees or suppliers; risks relating to any unforeseen
liabilities of Andeavor; risks as set forth above related to the
acquisition of ANDX by MPLX; future levels of revenues, refining
and marketing margins, operating costs, retail gasoline and
distillate margins, merchandise margins, income from operations,
net income or earnings per share; the regional, national and
worldwide availability and pricing of refined products, crude oil,
natural gas, NGLs and other feedstocks; consumer demand for refined
products; the ability to manage disruptions in credit markets or
changes to credit ratings; future levels of capital, environmental
or maintenance expenditures, general and administrative and other
expenses; the success or timing of completion of ongoing or
anticipated capital or maintenance projects; the reliability of
processing units and other equipment; business strategies, growth
opportunities and expected investment; share repurchase
authorizations, including the timing and amounts of any common
stock repurchases; the adequacy of capital resources and liquidity,
including but not limited to, availability of sufficient cash flow
to execute business plans and to effect any share repurchases or
dividend increases, including within the expected timeframe; the
effect of restructuring or reorganization of business components;
the potential effects of judicial or other proceedings on the
business, financial condition, results of operations and cash
flows; continued or further volatility in and/or degradation of
general economic, market, industry or business conditions;
compliance with federal and state environmental, economic, health
and safety, energy and other policies and regulations, including
the cost of compliance with the Renewable Fuel Standard, and/or
enforcement actions initiated thereunder; the anticipated effects
of actions of third parties such as competitors, activist investors
or federal, foreign, state or local regulatory authorities or
plaintiffs in litigation; the impact of adverse market conditions
or other similar risks to those identified herein affecting MPLX or
ANDX; and the factors set forth under the heading "Risk Factors" in
MPC's Annual Report on Form 10-K for the year ended Dec. 31, 2018, filed with the SEC.
We have based our forward-looking statements on our current
expectations, estimates and projections about our industry. We
caution that these statements are not guarantees of future
performance and you should not rely unduly on them, as they involve
risks, uncertainties, and assumptions that we cannot predict. In
addition, we have based many of these forward-looking statements on
assumptions about future events that may prove to be inaccurate.
While our respective management considers these assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. Accordingly, our actual results
may differ materially from the future performance that we have
expressed or forecast in our forward-looking statements. We
undertake no obligation to update any forward-looking statements
except to the extent required by applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction, a registration
statement on Form S-4 will be filed with the SEC. INVESTORS AND
SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT
AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE
CONSENT STATEMENT/PROSPECTUS THAT WILL BE PART OF THE REGISTRATION
STATEMENT, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The final
consent statement/prospectus will be sent to unitholders of ANDX.
Investors and security holders will be able to obtain the documents
free of charge at the SEC's website, www.sec.gov, from ANDX at its
website, http://ir.andeavorlogistics.com, or by contacting ANDX's
Investor Relations at (419) 421-2414, or from MPLX at its website,
http://ir.mplx.com, or by contacting MPLX's Investor Relations at
(419) 421-2414.
Participants in Solicitation
MPLX, ANDX, MPC and their respective directors and executive
officers and other members of management and employees may be
deemed to be participants in the solicitation of consents in
respect of the proposed transaction. Information concerning MPLX's
directors and executive officers is set forth in its Annual Report
on Form 10-K for the year ended Dec. 31,
2018, filed Feb. 28, 2019.
Information concerning ANDX's directors and executive officers is
set forth in its Annual Report on Form 10-K for the year ended
Dec. 31, 2018, filed Feb. 28, 2019. Information concerning MPC's
executive officers is set forth in MPC's Annual Report on Form 10-K
for the year ended Dec. 31, 2018,
filed Feb. 28, 2019. Information
about MPC's directors is set forth in MPC's Definitive Proxy
Statement on Schedule 14A for its 2019 Annual Meeting of
Shareholders, which was filed with the SEC on March 14, 2019. Investors and security holders
will be able to obtain the documents free of charge from the
sources indicated above, and with respect to MPC, from its website,
https://www.marathonpetroleum.com/Investors, or by contacting MPC's
Investor Relations at (419) 421-2414. Additional information
regarding the interests of such participants in the solicitation of
consents in respect of the proposed transaction will be included in
the registration statement and consent statement/prospectus and
other relevant materials to be filed with the SEC when they become
available.
Condensed Results
of Operations (unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
(In millions,
except per unit data)
|
|
2019
|
|
|
|
2018
|
|
Revenues and other
income:
|
|
|
|
|
|
Operating
revenue
|
$
|
768
|
|
|
$
|
712
|
|
Operating revenue -
related parties
|
|
782
|
|
|
|
620
|
|
Income (loss) from
equity method investments
|
|
70
|
|
|
|
61
|
|
Other
income
|
|
26
|
|
|
|
27
|
|
Total revenues and
other income
|
|
1,646
|
|
|
|
1,420
|
|
Costs and
expenses:
|
|
|
|
|
|
Operating
expenses
|
|
441
|
|
|
|
422
|
|
Operating expenses -
related parties
|
|
215
|
|
|
|
178
|
|
Depreciation and
amortization
|
|
211
|
|
|
|
176
|
|
General and
administrative expenses
|
|
82
|
|
|
|
69
|
|
Other
taxes
|
|
19
|
|
|
|
18
|
|
Total costs and
expenses
|
|
968
|
|
|
|
863
|
|
Income from
operations
|
|
678
|
|
|
|
557
|
|
Interest and other
financial costs
|
|
171
|
|
|
|
130
|
|
Income before
income taxes
|
|
507
|
|
|
|
427
|
|
(Benefit) provision
for income taxes
|
|
(2)
|
|
|
|
4
|
|
Net
income
|
|
509
|
|
|
|
423
|
|
Less: Net income
(loss) attributable to noncontrolling interests
|
|
6
|
|
|
|
2
|
|
Net income
attributable to MPLX LP
|
|
503
|
|
|
|
421
|
|
Less: Preferred unit
distributions
|
|
20
|
|
|
|
16
|
|
Limited partners'
interest in net income attributable to MPLX LP
|
$
|
483
|
|
|
$
|
405
|
|
|
|
|
|
|
|
Per Unit
Data
|
|
|
|
|
|
Net income
attributable to MPLX LP per limited partner unit:
|
|
|
|
|
|
Common -
basic
|
$
|
0.61
|
|
|
$
|
0.61
|
|
Common -
diluted
|
$
|
0.61
|
|
|
$
|
0.61
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
Common units –
basic
|
|
794
|
|
|
|
661
|
|
Common units –
diluted
|
|
795
|
|
|
|
661
|
|
|
|
|
|
|
|
Select Financial
Statistics (unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
(In millions,
except ratio data)
|
|
2019
|
|
|
|
2018
|
|
Distribution
declared
|
|
|
|
|
|
Common units (LP) -
public
|
$
|
191
|
|
|
$
|
179
|
|
Common units -
MPC(a)
|
|
332
|
|
|
|
288
|
|
Total GP and LP
distribution declared
|
|
523
|
|
|
|
467
|
|
Redeemable preferred
units(b)
|
|
20
|
|
|
|
16
|
|
Total distribution
declared
|
$
|
543
|
|
|
$
|
483
|
|
|
|
|
|
|
|
Distribution
coverage ratio(c)
|
|
1.41x
|
|
|
|
1.29x
|
|
|
|
|
|
|
|
Cash Flow
Data
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
Operating
activities
|
$
|
618
|
|
|
$
|
450
|
|
Investing
activities
|
|
(575)
|
|
|
|
(490)
|
|
Financing
activities
|
|
(26)
|
|
|
|
37
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
Adjusted EBITDA
attributable to MPLX LP(d)
|
|
930
|
|
|
|
760
|
|
DCF attributable to
GP and LP unitholders(d)
|
$
|
737
|
|
|
$
|
603
|
|
|
|
|
|
|
|
(a) MPC
agreed to waive $23.7 million in common unit distributions
associated with the units received in connection with the Feb. 1,
2018 dropdown.
|
(b) The
preferred units are considered redeemable securities due to the
existence of redemption provisions upon a deemed liquidation event
which is outside our control. These units rank senior to all common
units with respect to distributions and rights upon liquidation and
effective May 13, 2018, on an as-converted basis, preferred unit
holders receive the greater of $0.528125 per unit or the amount of
per unit distributions paid to holders of MPLX LP common
units.
|
(c) DCF
attributable to GP and LP unitholders divided by total GP and LP
distribution declared.
|
(d)
Non-GAAP measure. See reconciliation below.
|
Select Balance
Sheet Data (unaudited)
|
|
|
|
|
|
(In millions,
except ratio data)
|
|
March 31,
2019
|
|
|
December 31,
2018
|
Cash and cash
equivalents
|
$
|
93
|
|
|
$
|
68
|
|
Total
assets
|
|
23,584
|
|
|
|
22,779
|
|
Total
debt(a)
|
|
13,833
|
|
|
|
13,393
|
|
Redeemable preferred
units
|
|
1,004
|
|
|
|
1,004
|
|
Total
equity
|
$
|
6,929
|
|
|
$
|
6,864
|
|
Consolidated total
debt to adjusted EBITDA(b)
|
|
3.9x
|
|
|
|
3.9x
|
|
|
|
|
|
|
|
Partnership units
outstanding:
|
|
|
|
|
|
MPC-held common
units
|
|
505
|
|
|
|
505
|
|
Public common
units
|
|
290
|
|
|
|
289
|
|
|
|
|
|
|
|
(a)
Outstanding intercompany borrowings were zero as of March 31,
2019 and December 31, 2018.
|
(b)
Calculated using face value total debt and LTM pro forma adjusted
EBITDA, which is pro forma for acquisitions. Face value total debt
includes approximately $450 million and $463 million of unamortized
discount and debt issuance costs as of March 31, 2019 and
December 31, 2018, respectively.
|
Operating
Statistics (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
|
|
2019
|
|
|
|
2018
|
|
|
%
Change
|
Logistics and
Storage
|
|
|
|
|
|
|
|
Pipeline throughput
(mbpd)
|
|
|
|
|
|
|
|
Crude oil
pipelines
|
|
2,168
|
|
|
|
2,006
|
|
|
8
|
%
|
Product
pipelines
|
|
1,242
|
|
|
|
1,056
|
|
|
18
|
%
|
Total
pipelines
|
|
3,410
|
|
|
|
3,062
|
|
|
11
|
%
|
Average tariff rates
($ per barrel)
|
|
|
|
|
|
|
|
Crude oil
pipelines
|
$
|
0.61
|
|
|
$
|
0.56
|
|
|
9
|
%
|
Product
pipelines
|
|
0.79
|
|
|
|
0.76
|
|
|
4
|
%
|
Total
pipelines
|
$
|
0.67
|
|
|
$
|
0.63
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
Terminal throughput
(mbpd)
|
|
1,431
|
|
|
|
1,445
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
Barges at
period-end
|
|
256
|
|
|
|
244
|
|
|
5
|
%
|
Towboats at
period-end
|
|
23
|
|
|
|
20
|
|
|
15
|
%
|
Gathering and
Processing Operating Statistics (unaudited) -
Consolidated(a)
|
|
Three Months
Ended
March 31
|
|
|
2019
|
|
|
|
2018
|
|
|
%
Change
|
Gathering throughput
(mmcf/d)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
1,282
|
|
|
|
1,123
|
|
|
14
|
%
|
Utica
Operations
|
|
—
|
|
|
|
—
|
|
|
—
|
%
|
Southwest
Operations
|
|
1,581
|
|
|
|
1,476
|
|
|
7
|
%
|
Total gathering
throughput
|
|
2,863
|
|
|
|
2,599
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
Natural gas processed
(mmcf/d)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
4,152
|
|
|
|
3,594
|
|
|
16
|
%
|
Utica
Operations
|
|
—
|
|
|
|
—
|
|
|
—
|
%
|
Southwest
Operations
|
|
1,599
|
|
|
|
1,326
|
|
|
21
|
%
|
Southern Appalachian
Operations
|
|
235
|
|
|
|
253
|
|
|
(7)
|
%
|
Total natural gas
processed
|
|
5,986
|
|
|
|
5,173
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
C2 + NGLs
fractionated (mbpd)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
420
|
|
|
|
352
|
|
|
19
|
%
|
Utica
Operations
|
|
—
|
|
|
|
—
|
|
|
—
|
%
|
Southwest
Operations
|
|
17
|
|
|
|
16
|
|
|
6
|
%
|
Southern Appalachian
Operations
|
|
13
|
|
|
|
12
|
|
|
8
|
%
|
Total C2 + NGLs
fractionated
|
|
450
|
|
|
|
380
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
(a)
Includes operating data for entities that have been consolidated
into the MPLX financial statements.
|
Gathering and
Processing Operating Statistics (unaudited) -
Operated(a)
|
|
Three Months
Ended
March 31
|
|
|
2019
|
|
|
|
2018
|
|
|
%
Change
|
Gathering throughput
(mmcf/d)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
1,282
|
|
|
|
1,123
|
|
|
14
|
%
|
Utica
Operations
|
|
2,109
|
|
|
|
1,570
|
|
|
34
|
%
|
Southwest
Operations
|
|
1,581
|
|
|
|
1,478
|
|
|
7
|
%
|
Total gathering
throughput
|
|
4,972
|
|
|
|
4,171
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
Natural gas processed
(mmcf/d)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
5,148
|
|
|
|
4,114
|
|
|
25
|
%
|
Utica
Operations
|
|
817
|
|
|
|
936
|
|
|
(13)
|
%
|
Southwest
Operations
|
|
1,599
|
|
|
|
1,326
|
|
|
21
|
%
|
Southern Appalachian
Operations
|
|
235
|
|
|
|
253
|
|
|
(7)
|
%
|
Total natural gas
processed
|
|
7,799
|
|
|
|
6,629
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
C2 + NGLs
fractionated (mbpd)
|
|
|
|
|
|
|
|
Marcellus
Operations
|
|
420
|
|
|
|
352
|
|
|
19
|
%
|
Utica
Operations
|
|
44
|
|
|
|
43
|
|
|
2
|
%
|
Southwest
Operations
|
|
17
|
|
|
|
16
|
|
|
6
|
%
|
Southern Appalachian
Operations
|
|
13
|
|
|
|
12
|
|
|
8
|
%
|
Total C2 + NGLs
fractionated
|
|
494
|
|
|
|
423
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
(a)
Includes operating data for entities that have been consolidated
into the MPLX financial statements as well as operating data for
Partnership-operated equity method investments.
|
Reconciliation of
Segment Adjusted EBITDA to Net Income (unaudited)
|
|
|
|
Three Months
Ended
March 31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
L&S segment
adjusted EBITDA attributable to MPLX LP
|
$
|
559
|
|
|
$
|
437
|
|
G&P segment
adjusted EBITDA attributable to MPLX LP
|
|
371
|
|
|
|
323
|
|
Adjusted EBITDA
attributable to MPLX LP
|
|
930
|
|
|
|
760
|
|
Depreciation and
amortization
|
|
(211)
|
|
|
|
(176)
|
|
Provision for income
taxes
|
|
2
|
|
|
|
(4)
|
|
Amortization of
deferred financing costs
|
|
(13)
|
|
|
|
(16)
|
|
Non-cash equity-based
compensation
|
|
(6)
|
|
|
|
(4)
|
|
Net interest and
other financial costs
|
|
(158)
|
|
|
|
(114)
|
|
Income from equity
method investments
|
|
70
|
|
|
|
61
|
|
Distributions/adjustments related to equity method
investments
|
|
(108)
|
|
|
|
(90)
|
|
Unrealized derivative
gains/(losses)(a)
|
|
(4)
|
|
|
|
7
|
|
Acquisition
costs
|
|
—
|
|
|
|
(3)
|
|
Adjusted EBITDA
attributable to noncontrolling interests
|
|
7
|
|
|
|
2
|
|
Net
income
|
$
|
509
|
|
|
$
|
423
|
|
|
|
|
|
|
|
(a)
MPLX makes a distinction between realized and unrealized gains and
losses on derivatives. During the period when a derivative contract
is outstanding, changes in the fair value of the derivative are
recorded as an unrealized gain or loss. When a derivative contract
matures or is settled, the previously recorded unrealized gain or
loss is reversed and the realized gain or loss of the contract is
recorded.
|
L&S
Reconciliation of Segment Income from Operations to Segment
Adjusted EBITDA (unaudited)
|
|
|
|
Three Months
Ended
March 31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
L&S Segment
income from operations
|
$
|
480
|
|
|
$
|
385
|
|
Depreciation and
amortization
|
|
70
|
|
|
|
48
|
|
Income from equity
method investments
|
|
(41)
|
|
|
|
(44)
|
|
Distributions/adjustments related to equity method
investments
|
|
46
|
|
|
|
43
|
|
Acquisition
costs
|
|
—
|
|
|
|
3
|
|
Non-cash equity-based
compensation
|
|
4
|
|
|
|
2
|
|
L&S segment
adjusted EBITDA attributable to MPLX LP
|
$
|
559
|
|
|
$
|
437
|
|
|
|
|
|
|
|
G&P
Reconciliation of Segment Income from Operations to Segment
Adjusted EBITDA (unaudited)
|
|
|
|
|
Three Months
Ended
March 31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
G&P Segment
income from operations
|
$
|
198
|
|
|
$
|
172
|
|
Depreciation and
amortization
|
|
141
|
|
|
|
128
|
|
Income from equity
method investments
|
|
(29)
|
|
|
|
(17)
|
|
Distributions/adjustments related to equity method
investments
|
|
62
|
|
|
|
47
|
|
Unrealized derivative
(gains)/losses(a)
|
|
4
|
|
|
|
(7)
|
|
Non-cash equity-based
compensation
|
|
2
|
|
|
|
2
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(7)
|
|
|
|
(2)
|
|
G&P Segment
adjusted EBITDA attributable to MPLX LP
|
$
|
371
|
|
|
$
|
323
|
|
|
|
|
|
|
|
(a)
MPLX makes a distinction between realized and unrealized gains and
losses on derivatives. During the period when a derivative contract
is outstanding, changes in the fair value of the derivative are
recorded as an unrealized gain or loss. When a derivative contract
matures or is settled, the previously recorded unrealized gain or
loss is reversed and the realized gain or loss of the contract is
recorded.
|
Reconciliation of
Adjusted EBITDA Attributable to MPLX LP and DCF
Attributable to GP and LP Unitholders from Net Income (Loss)
(unaudited)
|
|
|
Three Months
Ended
March 31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
Net
income
|
$
|
509
|
|
|
$
|
423
|
|
(Benefit)/provision
for income taxes
|
|
(2)
|
|
|
|
4
|
|
Amortization of
deferred financing costs
|
|
13
|
|
|
|
16
|
|
Net interest and
other financial costs
|
|
158
|
|
|
|
114
|
|
Income from
operations
|
|
678
|
|
|
|
557
|
|
Depreciation and
amortization
|
|
211
|
|
|
|
176
|
|
Non-cash equity-based
compensation
|
|
6
|
|
|
|
4
|
|
Income from equity
method investments
|
|
(70)
|
|
|
|
(61)
|
|
Distributions/adjustments related to equity method
investments
|
|
108
|
|
|
|
90
|
|
Unrealized derivative
(gains)/losses(a)
|
|
4
|
|
|
|
(7)
|
|
Acquisition
costs
|
|
—
|
|
|
|
3
|
|
Adjusted
EBITDA
|
|
937
|
|
|
|
762
|
|
Adjusted EBITDA
attributable to noncontrolling interests
|
|
(7)
|
|
|
|
(2)
|
|
Adjusted EBITDA
attributable to MPLX LP
|
|
930
|
|
|
|
760
|
|
Deferred revenue
impacts
|
|
8
|
|
|
|
9
|
|
Net interest and
other financial costs
|
|
(158)
|
|
|
|
(114)
|
|
Maintenance capital
expenditures
|
|
(19)
|
|
|
|
(25)
|
|
Equity method
investment capital expenditures paid out
|
|
(4)
|
|
|
|
(11)
|
|
DCF attributable
to MPLX LP
|
|
757
|
|
|
|
619
|
|
Preferred unit
distributions
|
|
(20)
|
|
|
|
(16)
|
|
DCF attributable
to GP and LP unitholders
|
$
|
737
|
|
|
$
|
603
|
|
|
|
|
|
|
|
(a) MPLX
makes a distinction between realized and unrealized gains and
losses on derivatives. During the period when a derivative contract
is outstanding, changes in the fair value of the derivative are
recorded as an unrealized gain or loss. When a derivative contract
matures or is settled, the previously recorded unrealized gain or
loss is reversed and the realized gain or loss of the contract is
recorded.
|
Reconciliation of
Net Income to LTM Pro forma adjusted EBITDA
(unaudited)
|
|
|
Three Months
Ended
March
31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
LTM Net
income
|
$
|
1,920
|
|
|
$
|
1,072
|
|
LTM Net income to
adjusted EBITDA adjustments
|
|
1,725
|
|
|
|
1,269
|
|
LTM Adjusted
EBITDA attributable to MPLX LP
|
|
3,645
|
|
|
|
2,341
|
|
LTM Pro forma
adjustments for acquisitions
|
|
4
|
|
|
|
888
|
|
LTM Pro forma
adjusted EBITDA
|
|
3,649
|
|
|
|
3,229
|
|
Consolidated
debt
|
$
|
14,283
|
|
|
$
|
12,357
|
|
Consolidated debt
to adjusted EBITDA
|
|
3.9x
|
|
|
|
3.8x
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA Attributable to MPLX LP and DCF
Attributable to GP and LP Unitholders from Net Cash Provided by
Operating Activities (unaudited)
|
|
|
Three Months
Ended
March 31
|
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
Net cash provided
by operating activities
|
$
|
618
|
|
|
$
|
450
|
|
Changes in working
capital items
|
|
141
|
|
|
|
178
|
|
All other,
net
|
|
4
|
|
|
|
(3)
|
|
Non-cash equity-based
compensation
|
|
6
|
|
|
|
4
|
|
Net loss on disposal
of assets
|
|
(1)
|
|
|
|
—
|
|
Net interest and
other financial costs
|
|
158
|
|
|
|
114
|
|
Asset retirement
expenditures
|
|
—
|
|
|
|
1
|
|
Unrealized derivative
(gains)/losses(a)
|
|
4
|
|
|
|
(7)
|
|
Acquisition
costs
|
|
—
|
|
|
|
3
|
|
Distributions/adjustments related to equity method
investments
|
|
7
|
|
|
|
22
|
|
Adjusted
EBITDA
|
|
937
|
|
|
|
762
|
|
Adjusted EBITDA
attributable to noncontrolling interests
|
|
(7)
|
|
|
|
(2)
|
|
Adjusted EBITDA
attributable to MPLX LP
|
|
930
|
|
|
|
760
|
|
Deferred revenue
impacts
|
|
8
|
|
|
|
9
|
|
Net interest and
other financial costs
|
|
(158)
|
|
|
|
(114)
|
|
Maintenance capital
expenditures
|
|
(19)
|
|
|
|
(25)
|
|
Equity method
investment capital expenditures paid out
|
|
(4)
|
|
|
|
(11)
|
|
DCF attributable
to MPLX LP
|
|
757
|
|
|
|
619
|
|
Preferred unit
distributions
|
|
(20)
|
|
|
|
(16)
|
|
DCF attributable
to GP and LP unitholders
|
$
|
737
|
|
|
$
|
603
|
|
|
|
|
|
|
|
(a) MPLX
makes a distinction between realized and unrealized gains and
losses on derivatives. During the period when a derivative contract
is outstanding, changes in the fair value of the derivative are
recorded as an unrealized gain or loss. When a derivative contract
matures or is settled, the previously recorded unrealized gain or
loss is reversed and the realized gain or loss of the contract is
recorded.
|
Capital
Expenditures (unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
(In
millions)
|
|
2019
|
|
|
|
2018
|
|
Capital
Expenditures:
|
|
|
|
|
|
Maintenance
|
$
|
19
|
|
|
$
|
25
|
|
Growth
|
|
364
|
|
|
|
425
|
|
Total capital
expenditures
|
|
383
|
|
|
|
450
|
|
Less: Decrease in
capital accruals
|
|
(74)
|
|
|
|
(6)
|
|
Asset retirement
expenditures
|
|
—
|
|
|
|
1
|
|
Additions to
property, plant and equipment
|
|
457
|
|
|
|
455
|
|
Investments in
unconsolidated affiliates
|
|
128
|
|
|
|
38
|
|
Acquisitions
|
|
(1)
|
|
|
|
—
|
|
Total capital
expenditures and acquisitions
|
|
584
|
|
|
$
|
493
|
|
Less: Maintenance
capital expenditures
|
|
19
|
|
|
|
25
|
|
Acquisitions
|
|
(1)
|
|
|
|
—
|
|
Total growth
capital expenditures(a)
|
$
|
566
|
|
|
$
|
468
|
|
|
|
|
|
|
|
(a)
Amount excludes contributions from noncontrolling interests of $94
million and $1 million for the three months ended March 31, 2019
and 2018, respectively, as reflected in the financing section of
our statement of cash flows.
|
View original
content:http://www.prnewswire.com/news-releases/mplx-lp-reports-first-quarter-2019-financial-results-300846177.html
SOURCE MPLX LP