COST: 450 $MM
VOLUMES: 120 M Bbls/d
COST: 220 $MM
VOLUMES: 230 M Bbls/d
COST: 2 $B
FINDLAY, Ohio, Feb. 2, 2021 /PRNewswire/ --
MPLX LP (NYSE: MPLX) today reported fourth-quarter 2020 net income attributable to MPLX of $691 million, compared to a net loss attributable to MPLX of $581 million for the fourth quarter of 2019. Fourth-quarter 2019 results include non-cash impairment charges of $1.2 billion primarily related to goodwill associated with western U.S. gathering and processing businesses. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1.4 billion, compared with $1.3 billion in the fourth quarter of 2019.
The Logistics and Storage (L&S) segment reported segment income from operations of $662 million and adjusted EBITDA of $884 million for the quarter, down $15 million and up $31 million, respectively, versus the fourth quarter of last year. The Gathering and Processing (G&P) segment reported segment income from operations of $258 million and adjusted EBITDA of $471 million for the quarter, up $1.3 billion and $5 million, respectively, versus the fourth quarter of last year.
During the quarter, MPLX generated $1.2 billion in net cash provided by operating activities and $1.2 billion of distributable cash flow. Distribution coverage was 1.58x for the fourth quarter of 2020. MPLX also announced a fourth-quarter 2020 distribution of $0.6875 per common unit, consistent with the prior quarter.
"As we look back on the unprecedented challenges we faced in 2020, we are proud of the way our performance highlighted the resiliency and stability of our underlying businesses," said Michael J. Hennigan, chairman, president and chief executive officer. "Our results demonstrate our commitment to executing on the priorities we laid out for the year. We took necessary steps to reduce our long-term cost structure and achieved excess cash flow for the full year, giving us the financial flexibility to begin repurchasing units.
"Looking forward to 2021, we have outlined a growth capital spending outlook that allows us to focus on investments that deliver the most attractive returns. We also continue to work on opportunities for lowering costs and driving efficiencies in the business. This emphasis on strict capital discipline, along with growing EBITDA, supports our continuing goal of generating excess cash flow for 2021, providing the opportunity to return incremental capital to our unitholders."
Financial Highlights
Three Months Ended Dec. 31 | Twelve Months Ended December 31 | ||||||||||||||||||
(In millions, except per unit and ratio data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net income (loss) attributable to MPLX(a) | $ | 691 | $ | (581) | $ | (720) | $ | 1,033 | |||||||||||
Adjusted net (loss) income attributable to MPLX(b) | N/A | (581) | N/A | 1,434 | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(c) | 1,355 | 1,319 | 5,211 | 5,104 | |||||||||||||||
Net cash provided by operating activities | 1,185 | 1,092 | 4,521 | 4,082 | |||||||||||||||
Distributable cash flow attributable to MPLX LP(c) | 1,155 | 1,045 | 4,327 | 4,100 | |||||||||||||||
Distribution per common unit(d) | $ | 0.6875 | $ | 0.6875 | $ | 2.7500 | $ | 2.6900 | |||||||||||
Distribution coverage ratio(e) | 1.58x | 1.42x | 1.46x | 1.51x | |||||||||||||||
Consolidated debt to adjusted EBITDA(f) | 3.9x | 4.1x | 3.9x | 4.1x | |||||||||||||||
(a) | The twelve months ended Dec. 31, 2020 includes impairments related to equity method investments of approximately $1.3 billion, goodwill impairment of approximately $1.8 billion and long-lived asset impairments of approximately $0.3 billion, all within our G&P operating segment. |
(b) | Includes net income attributable to predecessor for the twelve months ended Dec. 31, 2019. The predecessor period represents the period prior to MPLX's acquisition of Andeavor Logistics LP (ANDX) on July 30, 2019. |
(c) | Non-GAAP measures calculated before distributions to preferred unitholders. See reconciliation below. Includes adjusted EBITDA and distributable cash flow (DCF) adjustments attributable to predecessor. For the twelve months ended Dec. 31, 2019, adjusted EBITDA attributable to MPLX LP excluding predecessor results was $4.3 billion. |
(d) | Distributions declared by the board of directors of MPLX's general partner. |
(e) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distributions declared. For the twelve months ended Dec. 31, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX for the first quarter of 2019, resulting in a distribution coverage ratio of 1.51x. |
(f) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. See reconciliation below. 2019 is shown as historically presented and has not been adjusted for predecessor impacts. |
Segment Results (including predecessor)
(In millions) | Three Months Ended Dec. 31 | Twelve Months Ended December 31 | |||||||||||||
Segment income (loss) from operations (unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Logistics and Storage | $ | 662 | $ | 677 | $ | 2,743 | $ | 2,752 | |||||||
Gathering and Processing | 258 | (1,023) | (2,532) | (375) | |||||||||||
Segment adjusted EBITDA attributable to MPLX LP (unaudited) | |||||||||||||||
Logistics and Storage | 884 | 853 | 3,488 | 3,351 | |||||||||||
Gathering and Processing | $ | 471 | $ | 466 | $ | 1,723 | $ | 1,753 | |||||||
Logistics & Storage
L&S segment income from operations for the fourth quarter of 2020 decreased by $15 million while segment adjusted EBITDA for the fourth quarter of 2020 increased by $31 million. Both results are compared to the same period in 2019. EBITDA for the quarter benefited from lower operating expenses and the strength of underlying contracts, partially offset by lower demand due to the COVID-19 pandemic.
Total pipeline throughputs were 4.7 million barrels per day (bpd) in the fourth quarter, a decrease of 8% versus the same quarter of 2019. The average tariff rate was $0.90 per barrel for the quarter, consistent with the same quarter of 2019. Terminal throughput was 2.6 million bpd for the quarter, a decrease of 21% versus the same quarter of 2019.
Gathering & Processing
G&P segment income from operations for the fourth quarter of 2020 increased by $1.3 billion while segment adjusted EBITDA for the fourth quarter of 2020 increased by $5 million. Both results are compared to the same period in 2019. Fourth-quarter 2019 income from operations results include non-cash impairment charges of $1.2 billion primarily related to goodwill associated with western U.S. G&P businesses. EBITDA for the current quarter was primarily driven by lower operating costs partially offset by production curtailments and shut-ins. In the fourth quarter of 2020:
In the Marcellus and Utica:
Strategic Update
MPLX announced a 2021 growth capital outlook of $800 million focused on projects expected to deliver the highest returns and support the generation of excess cash flow. The company repurchased $33 million of common units held by the public in the fourth quarter of 2020.
In line with previously announced efforts around portfolio optimization, the company intends to close the sale of its Javelina plant in Corpus Christi, Texas, in early 2021. MPLX remains committed to portfolio optimization, focusing on the assets that have long-term strategic value to the company.
In the L&S segment, MPLX continues to advance its strategy of creating integrated crude oil and natural gas logistics systems from the Permian to the U.S. Gulf Coast. The Wink to Webster crude oil pipeline, in which MPLX has an equity interest, continues to progress, with segments and assets expected to come online throughout 2021. The 36-inch diameter pipeline, of which 100% of the contractible capacity is committed with minimum volume commitments (MVCs), will originate in the Permian Basin and have destination points in the Houston market, including Marathon Petroleum Corporation's (MPC's) Galveston Bay refinery.
Also in the Permian, the Whistler Pipeline is being designed to transport approximately 2 bcf/d of natural gas from Waha, Texas, to the Agua Dulce market in south Texas, ultimately reaching MPC's Galveston Bay refinery. MPLX has an equity interest in Whistler, which is expected to be placed in service in the second half of 2021. Whistler is more than 90% committed with MVCs.
MPLX, WhiteWater Midstream (WWM), and West Texas Gas, Inc. (WTG) through a joint venture (JV) continue to progress a solution for natural gas liquids takeaway capacity from MPLX and WTG gas processing plants to Sweeny, Texas. The JV utilizes existing infrastructure with limited new construction and is a capital-efficient solution to support producer customers.
In the G&P segment, during the quarter WWM and MPLX announced the substantial completion of a 1.8 bcf/d expansion of their joint venture Agua Blanca pipeline system. The Agua Blanca system is connected to almost 20 gas processing sites in the Delaware Basin. The system is anticipated to be brought into full service in early 2021.
Financial Position and Liquidity
As of Dec. 31, 2020, MPLX had $15 million in cash, $3.3 billion available through its bank revolving credit facility expiring in July 2024, and $1.5 billion available through its intercompany loan agreement with MPC. The company's leverage ratio was 3.9x at Dec. 31, 2020.
On Jan.15, 2021, MPLX redeemed all of its $750 million outstanding aggregate principal amount of 5.250% senior notes due Jan. 15, 2025.
MPLX remains committed to maintaining an investment-grade credit profile.
Conference Call
At 9:30 a.m. EST today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related material, will also be available online prior to the conference call and webcast at www.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 Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact: (419) 421-3312
Jamal Kheiry, Manager, Communications
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; consolidated debt to last twelve months pro forma adjusted EBITDA, which we refer to as our leverage ratio; distributable cash flow (DCF); distribution coverage ratio; and free cash flow (FCF) and excess/deficit cash flow. 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/benefit for income taxes; (iii) amortization of deferred financing costs; (iv) gain/loss on extinguishment of debt; (v) non-cash equity-based compensation; (vi) impairment expense; (vii) net interest and other financial costs; (viii) income/loss from equity method investments; (ix) distributions and adjustments related to equity method investments; (x) unrealized derivative gains/losses; (xi) acquisition costs; (xii) noncontrolling interest and (xiii) 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 adjustments as deemed necessary.
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.
FCF and excess/deficit cash flow are financial performance measures used by management in the allocation of capital and to assess financial performance. We believe that unitholders may use this metric to analyze our ability to manage leverage and return capital. We define FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) contributions from MPC; (iii) contributions from noncontrolling interests and (iv) distributions to noncontrolling interests. We define excess/deficit cash flow as FCF adjusted for distributions to common and preferred 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, MPLX's expectations, estimates and projections concerning the business and operations, financial priorities and strategic plans of MPLX. 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," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "proposition," "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 but are not limited to: the magnitude and duration of the COVID-19 pandemic and its effects, including travel restrictions, business and school closures, increased remote work, stay at home orders and other actions taken by individuals, government and the private sector to stem the spread of the virus, and the adverse impact thereof on our business, financial condition, results of operations and cash flows, including, but not limited to, our growth, operating costs, labor availability, logistical capabilities, customer demand for our services and industry demand generally, cash position, taxes, the price of our securities and trading markets with respect thereto, our ability to access capital markets, and the global economy and financial markets generally; the ability to reduce capital and operating expenses; the risk of further impairments; 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 positive free cash flow in 2021, and with respect to distribution coverage, future distribution levels, proposed projects and completed transactions; the success of Marathon Petroleum Corporation's (MPC) portfolio optimization, including the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; 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 and to effect any common unit repurchases; 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 as a result of the COVID-19 pandemic (including any related government policies and actions), other infectious disease outbreaks, natural hazards, extreme weather events or otherwise; general economic, political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, regulation or taxation and other economic and political developments (including those caused by public health issues and outbreaks); non-payment or non-performance by our producer and other customers; 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 MPC's obligations under MPLX'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 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, 2019, and in Forms 10-Q and other filings, 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 but are not limited to: the magnitude and duration of the COVID-19 pandemic and its effects, including travel restrictions, business and school closures, increased remote work, stay at home orders and other actions taken by individuals, government and the private sector to stem the spread of the virus, and the adverse impact thereof on the business, financial condition, results of operations and cash flows, including, but not limited to, growth, operating costs, labor availability, logistical capabilities, customer demand for products and industry demand generally, margins, inventory value, cash position, taxes, the price of securities and trading markets with respect thereto, the ability to access capital markets, and the global economy and financial markets generally; the ability to reduce capital and operating expenses; with respect to the planned sale of Speedway, the ability to successfully complete the sale within the expected timeframe, on the expected terms, or at all, based on numerous factors, including the failure to satisfy any of the conditions to the consummation of the planned transaction (including obtaining certain governmental or regulatory approvals on the proposed terms and schedule), the occurrence of any event, change or other circumstance that could give rise to the termination of the planned transaction; MPC's ability to utilize the proceeds as anticipated; the risk that the dissynergy costs, costs of restructuring transactions and other costs incurred in connection with the planned transaction will exceed our estimates; and our ability to capture value and realize the other expected benefits from the associated ongoing supply relationship following consummation of the planned sale; the risk that the cost savings and any other synergies from MPC's acquisitions may not be fully realized or may take longer to realize than expected; the risk of further impairments; the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; future levels of revenues, refining and marketing margins, operating costs, gasoline and distillate margins, merchandise margins, income from operations, net income and 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 and maintenance expenditures; general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects, including the potential conversion of MPC's Martinez Refinery to a renewable diesel facility; the receipt of relevant third party and/or regulatory approvals; the reliability of processing units and other equipment; the successful realization of business strategies, growth opportunities and expected investment; share repurchase authorizations, including the timing and amounts of such repurchases; the adequacy of capital resources and liquidity, including availability, timing and amounts of free cash flow necessary to execute business plans, complete announced capital projects and to effect any share repurchases or to maintain or increase the dividend; the effect of restructuring or reorganization of business components, including those undertaken in connection with the planned sale of Speedway and workforce reduction; the potential effects of judicial or other proceedings, including remedial actions involving removal and reclamation obligations under environmental regulations, 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 as a result of the COVID-19 pandemic (including any related government policies and actions), other infectious disease outbreaks, natural hazards, extreme weather events or otherwise; general economic, political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, regulation or taxation and other economic and political developments (including those caused by public health issues and outbreaks); non-payment or non-performance by producer and other customers; compliance with federal and state environmental, economic, health and safety, energy and other policies, permitting and regulations, including the cost of compliance with the Renewable Fuel Standard, and/or enforcement actions initiated thereunder; the 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; 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, 2019, and in Forms 10-Q and other filings, filed with the SEC.
We have based our forward-looking statements on our current expectations, estimates and projections about our business and 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 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. Any forward-looking statements speak only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statements except to the extent required by applicable law. Copies of MPLX's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.
Condensed Results of Operations (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended December 31 | |||||||||||||
(In millions, except per unit data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenues and other income: | |||||||||||||||
Operating revenue | $ | 955 | $ | 1,014 | $ | 3,586 | $ | 3,832 | |||||||
Operating revenue - related parties | 1,154 | 1,231 | 4,660 | 4,793 | |||||||||||
Income (loss) from equity method investments | 76 | 35 | (936) | 290 | |||||||||||
Other income | 64 | 36 | 259 | 126 | |||||||||||
Total revenues and other income | 2,249 | 2,316 | 7,569 | 9,041 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating expenses | 519 | 625 | 2,000 | 2,316 | |||||||||||
Operating expenses - related parties | 304 | 378 | 1,276 | 1,396 | |||||||||||
Depreciation and amortization | 385 | 338 | 1,377 | 1,254 | |||||||||||
Impairment expense | — | 1,197 | 2,165 | 1,197 | |||||||||||
General and administrative expenses | 89 | 95 | 378 | 388 | |||||||||||
Restructuring expenses | 1 | — | 37 | — | |||||||||||
Other taxes | 31 | 29 | 125 | 113 | |||||||||||
Total costs and expenses | 1,329 | 2,662 | 7,358 | 6,664 | |||||||||||
Income (loss) from operations | 920 | (346) | 211 | 2,377 | |||||||||||
Interest and other financial costs | 219 | 229 | 896 | 915 | |||||||||||
Income (loss) before income taxes | 701 | (575) | (685) | 1,462 | |||||||||||
Provision (benefit) for income taxes | 1 | (2) | 2 | — | |||||||||||
Net income (loss) | 700 | (573) | (687) | 1,462 | |||||||||||
Less: Net income attributable to noncontrolling interests | 9 | 8 | 33 | 28 | |||||||||||
Less: Net income attributable to Predecessor | — | — | — | 401 | |||||||||||
Net income (loss) attributable to MPLX LP | 691 | (581) | (720) | 1,033 | |||||||||||
Less: Series A preferred unit distributions | 20 | 20 | 81 | 81 | |||||||||||
Less: Series B preferred unit distributions | 10 | 10 | 41 | 17 | |||||||||||
Limited partners' interest in net income (loss) attributable to MPLX LP | $ | 661 | $ | (611) | $ | (842) | $ | 935 | |||||||
Per Unit Data | |||||||||||||||
Net income (loss) attributable to MPLX LP per limited partner unit: | |||||||||||||||
Common - basic | $ | 0.63 | $ | (0.58) | $ | (0.80) | $ | 1.00 | |||||||
Common - diluted | $ | 0.63 | $ | (0.58) | $ | (0.80) | $ | 1.00 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units – basic | 1,040 | 1,058 | 1,051 | 906 | |||||||||||
Common units – diluted | 1,040 | 1,058 | 1,051 | 907 | |||||||||||
Select Financial Statistics (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended December 31 | ||||||||||||||
(In millions, except ratio data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Common unit distributions declared by MPLX | ||||||||||||||||
Common units (LP) - public(a) | $ | 269 | $ | 270 | $ | 1,079 | $ | 988 | ||||||||
Common units - MPC(a) | 445 | 446 | 1,793 | 1,647 | ||||||||||||
Total GP and LP distribution declared | 714 | 716 | 2,872 | 2,635 | ||||||||||||
Preferred unit distributions(b) | ||||||||||||||||
Series A preferred unit distributions(c) | 20 | 20 | 81 | 81 | ||||||||||||
Series B preferred unit distributions(d) | 10 | 11 | 41 | 42 | ||||||||||||
Total preferred unit distributions | 30 | 31 | 122 | 123 | ||||||||||||
Other Financial Data | ||||||||||||||||
Adjusted EBITDA attributable to MPLX LP(e)(f) | 1,355 | 1,319 | 5,211 | 5,104 | ||||||||||||
DCF attributable to GP and LP unitholders(e)(f) | $ | 1,125 | $ | 1,015 | $ | 4,200 | $ | 3,978 | ||||||||
Distribution coverage ratio(g) | 1.58x | 1.42x | 1.46x | 1.51x | ||||||||||||
Cash Flow Data | ||||||||||||||||
Net cash flow provided by (used in): | ||||||||||||||||
Operating activities | $ | 1,185 | $ | 1,092 | $ | 4,521 | $ | 4,082 | ||||||||
Investing activities | (202) | (874) | (1,262) | (3,063) | ||||||||||||
Financing activities | $ | (996) | $ | (244) | $ | (3,259) | $ | (1,089) | ||||||||
(a) | The distribution on common units for the three and twelve months ended Dec. 31, 2019 includes the impact of the issuance of approximately 102 million units issued to public unitholders and approximately 161 million units issued to MPC in connection with MPLX's acquisition of ANDX on July 30, 2019. |
(b) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the Series B preferred assuming a distribution is declared by the Board of Directors (distributions on Series B preferred units are declared and payable semi-annually on Feb. 15th and Aug. 15th or the first business day thereafter). Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders. |
(c) | Series A 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. |
(d) | Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on Feb. 15 and Aug. 15 or the first business day thereafter. |
(e) | Non-GAAP measure. See reconciliation below. |
(f) | Includes predecessor EBITDA and DCF that is attributable to the period prior to the acquisition date of July 30, 2019. For the twelve months ended Dec. 31, 2019, adjusted EBITDA attributable to MPLX LP excluding predecessor results was $4.3 billion. |
(g) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution declared. For the twelve months ended Dec. 31, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX for the first quarter of 2019, resulting in a distribution coverage ratio of 1.51x. |
Select Balance Sheet Data (unaudited) | |||||||
(In millions, except ratio data) | December 31, 2020 | December 31, | |||||
Cash and cash equivalents | $ | 15 | $ | 15 | |||
Total assets | 36,414 | 40,430 | |||||
Total long-term debt(a) | 20,139 | 20,307 | |||||
Redeemable preferred units | 968 | 968 | |||||
Total equity | $ | 13,017 | $ | 16,613 | |||
Consolidated total debt to adjusted EBITDA(b) | 3.9x | 4.1x | |||||
Partnership units outstanding: | |||||||
MPC-held common units | 647 | 666 | |||||
Public common units | 391 | 392 | |||||
(a) | Outstanding intercompany borrowings were zero as of Dec. 31, 2020, and $594 million as of Dec. 31, 2019. Includes unamortized debt issuance costs, unamortized discount/premium and long-term debt due within one year. |
(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 $397 million and $406 million of unamortized discount and debt issuance costs as of Dec. 31, 2020, and Dec. 31, 2019, respectively. |
Operating Statistics (unaudited)(a) | Three Months Ended Dec. 31 | Twelve Months Ended December 31 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Logistics and Storage | |||||||||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||||||||
Crude oil pipelines | 2,970 | 3,196 | (7) | % | 2,998 | 3,228 | (7) | % | |||||||||||||
Product pipelines | 1,753 | 1,923 | (9) | % | 1,714 | 1,886 | (9) | % | |||||||||||||
Total pipelines | 4,723 | 5,119 | (8) | % | 4,712 | 5,114 | (8) | % | |||||||||||||
Average tariff rates ($ per barrel) | |||||||||||||||||||||
Crude oil pipelines | $ | 0.97 | $ | 0.97 | — | % | $ | 0.96 | $ | 0.94 | 2 | % | |||||||||
Product pipelines | 0.78 | 0.78 | — | % | 0.81 | 0.75 | 8 | % | |||||||||||||
Total pipelines | $ | 0.90 | $ | 0.90 | — | % | 0.91 | 0.87 | 5 | % | |||||||||||
Terminal throughput (mbpd) | 2,606 | 3,313 | (21) | % | 2,673 | 3,279 | (18) | % | |||||||||||||
Barges at period-end | 300 | 286 | 5 | % | 300 | 286 | 5 | % | |||||||||||||
Towboats at period-end | 23 | 23 | — | % | 23 | 23 | — | % | |||||||||||||
(a) | Statistics for the twelve months ended Dec. 31, 2019, are inclusive of predecessor operations. |
Gathering and Processing Operating Statistics (unaudited) - Consolidated(a) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,281 | 1,329 | (4) | % | 1,349 | 1,287 | 5 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 1,281 | 1,329 | (4) | % | 1,349 | 1,287 | 5 | % | |||||||||||||
Southwest Operations | 1,385 | 1,651 | (16) | % | 1,430 | 1,625 | (12) | % | |||||||||||||
Bakken Operations | 136 | 158 | (14) | % | 137 | 151 | (9) | % | |||||||||||||
Rockies Operations | 476 | 602 | (21) | % | 511 | 630 | (19) | % | |||||||||||||
Total gathering throughput | 3,278 | 3,740 | (12) | % | 3,427 | 3,693 | (7) | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,259 | 4,136 | 3 | % | 4,198 | 4,192 | — | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 4,259 | 4,136 | 3 | % | 4,198 | 4,192 | — | % | |||||||||||||
Southwest Operations | 1,448 | 1,690 | (14) | % | 1,471 | 1,629 | (10) | % | |||||||||||||
Southern Appalachian Operations | 231 | 244 | (5) | % | 231 | 244 | (5) | % | |||||||||||||
Bakken Operations | 135 | 158 | (15) | % | 136 | 151 | (10) | % | |||||||||||||
Rockies Operations | 471 | 564 | (16) | % | 502 | 572 | (12) | % | |||||||||||||
Total natural gas processed | 6,544 | 6,792 | (4) | % | 6,538 | 6,788 | (4) | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 492 | 446 | 10 | % | 472 | 435 | 9 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 492 | 446 | 10 | % | 472 | 435 | 9 | % | |||||||||||||
Southwest Operations | 21 | 21 | — | % | 18 | 15 | 20 | % | |||||||||||||
Southern Appalachian Operations | 12 | 13 | (8) | % | 12 | 12 | — | % | |||||||||||||
Bakken Operations | 26 | 31 | (16) | % | 25 | 24 | 4 | % | |||||||||||||
Rockies Operations | 4 | 5 | (20) | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 555 | 516 | 8 | % | 531 | 490 | 8 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements. Statistics for the twelve months ended Dec. 31, 2019, are inclusive of predecessor operations. |
(b) | The Utica region relates to operations for partnership-operated equity method investments and thus does not have any operating statistics from a consolidated perspective. See table below for details on Utica. |
Gathering and Processing Operating Statistics (unaudited) - Operated(a) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,281 | 1,329 | (4) | % | 1,349 | 1,287 | 5 | % | |||||||||||||
Utica Operations | 1,753 | 2,241 | (22) | % | 1,818 | 2,200 | (17) | % | |||||||||||||
Subtotal | 3,034 | 3,570 | (15) | % | 3,167 | 3,487 | (9) | % | |||||||||||||
Southwest Operations | 1,459 | 1,658 | (12) | % | 1,483 | 1,628 | (9) | % | |||||||||||||
Bakken Operations | 136 | 158 | (14) | % | 137 | 151 | (9) | % | |||||||||||||
Rockies Operations | 636 | 806 | (21) | % | 688 | 828 | (17) | % | |||||||||||||
Total gathering throughput | 5,265 | 6,192 | (15) | % | 5,475 | 6,094 | (10) | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 5,769 | 5,339 | 8 | % | 5,629 | 5,248 | 7 | % | |||||||||||||
Utica Operations | 552 | 734 | (25) | % | 578 | 810 | (29) | % | |||||||||||||
Subtotal | 6,321 | 6,073 | 4 | % | 6,207 | 6,058 | 2 | % | |||||||||||||
Southwest Operations | 1,519 | 1,720 | (12) | % | 1,537 | 1,636 | (6) | % | |||||||||||||
Southern Appalachian Operations | 231 | 244 | (5) | % | 231 | 244 | (5) | % | |||||||||||||
Bakken Operations | 135 | 158 | (15) | % | 136 | 151 | (10) | % | |||||||||||||
Rockies Operations | 471 | 564 | (16) | % | 502 | 572 | (12) | % | |||||||||||||
Total natural gas processed | 8,677 | 8,759 | (1) | % | 8,613 | 8,661 | (1) | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 492 | 446 | 10 | % | 472 | 435 | 9 | % | |||||||||||||
Utica Operations | 30 | 41 | (27) | % | 31 | 44 | (30) | % | |||||||||||||
Subtotal | 522 | 487 | 7 | % | 503 | 479 | 5 | % | |||||||||||||
Southwest Operations | 21 | 21 | — | % | 18 | 15 | 20 | % | |||||||||||||
Southern Appalachian Operations | 12 | 13 | (8) | % | 12 | 12 | — | % | |||||||||||||
Bakken Operations | 26 | 31 | (16) | % | 25 | 24 | 4 | % | |||||||||||||
Rockies Operations | 4 | 5 | (20) | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 585 | 557 | 5 | % | 562 | 534 | 5 | % | |||||||||||||
(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. Statistics for the twelve months ended Dec. 31, 2019 are inclusive of predecessor operations. |
Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | $ | 884 | $ | 853 | $ | 3,488 | $ | 3,351 | |||||||
G&P segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 471 | 466 | 1,723 | 1,753 | |||||||||||
Adjusted EBITDA attributable to MPLX LP (including predecessor results) | 1,355 | 1,319 | 5,211 | 5,104 | |||||||||||
Depreciation and amortization | (385) | (338) | (1,377) | (1,254) | |||||||||||
(Provision) benefit for income taxes | (1) | 2 | (2) | — | |||||||||||
Amortization of deferred financing costs | (17) | (13) | (61) | (42) | |||||||||||
Gain on extinguishment of debt | 5 | — | 19 | — | |||||||||||
Non-cash equity-based compensation | (2) | (5) | (14) | (22) | |||||||||||
Impairment expense | — | (1,197) | (2,165) | (1,197) | |||||||||||
Restructuring expenses | (1) | — | (37) | — | |||||||||||
Net interest and other financial costs | (207) | (216) | (854) | (873) | |||||||||||
Income (loss) from equity method investments(a) | 76 | 35 | (936) | 290 | |||||||||||
Distributions/adjustments related to equity method investments | (130) | (163) | (499) | (562) | |||||||||||
Unrealized derivative (losses) gains(b) | (2) | (6) | (3) | 1 | |||||||||||
Acquisition costs | — | — | — | (14) | |||||||||||
Other | (1) | — | (6) | (1) | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | 10 | 9 | 37 | 32 | |||||||||||
Net income (loss) | $ | 700 | $ | (573) | $ | (687) | $ | 1,462 | |||||||
(a) | Includes impairment charges of $1,264 million for the twelve months ended Dec. 31, 2020. |
(b) | 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 Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
L&S segment income from operations | $ | 662 | $ | 677 | $ | 2,743 | $ | 2,752 | |||||||
Depreciation and amortization | 193 | 130 | 633 | 503 | |||||||||||
Restructuring expenses | 2 | — | 29 | — | |||||||||||
Income from equity method investments | (28) | (41) | (154) | (200) | |||||||||||
Distributions/adjustments related to equity method investments | 52 | 83 | 221 | 267 | |||||||||||
Acquisition costs | — | — | — | 14 | |||||||||||
Non-cash equity-based compensation | 2 | 4 | 10 | 14 | |||||||||||
Other | 1 | — | 6 | 1 | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 884 | 853 | 3,488 | 3,351 | |||||||||||
L&S predecessor segment adjusted EBITDA attributable to MPLX LP | — | — | — | (603) | |||||||||||
L&S segment adjusted EBITDA attributable to MPLX LP | $ | 884 | $ | 853 | $ | 3,488 | $ | 2,748 | |||||||
G&P Reconciliation of Segment Income from Operations to Segment Adjusted EBITDA (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
G&P segment income (loss) from operations | $ | 258 | $ | (1,023) | $ | (2,532) | $ | (375) | |||||||
Depreciation and amortization | 192 | 208 | 744 | 751 | |||||||||||
Impairment expense | — | 1,197 | 2,165 | 1,197 | |||||||||||
Restructuring expenses | (1) | — | 8 | — | |||||||||||
(Income) loss from equity method investments | (48) | 6 | 1,090 | (90) | |||||||||||
Distributions/adjustments related to equity method investments | 78 | 80 | 278 | 295 | |||||||||||
Unrealized derivative losses (gains)(a) | 2 | 6 | 3 | (1) | |||||||||||
Non-cash equity-based compensation | — | 1 | 4 | 8 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (10) | (9) | (37) | (32) | |||||||||||
G&P segment adjusted EBITDA attributable to MPLX LP (including predecessor results) | 471 | 466 | 1,723 | 1,753 | |||||||||||
G&P predecessor segment adjusted EBITDA attributable to MPLX LP | — | — | — | (167) | |||||||||||
G&P segment adjusted EBITDA attributable to MPLX LP | $ | 471 | $ | 466 | $ | 1,723 | $ | 1,586 | |||||||
(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 Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) | $ | 700 | $ | (573) | $ | (687) | $ | 1,462 | |||||||
Provision for income taxes | 1 | (2) | 2 | — | |||||||||||
Amortization of deferred financing costs | 17 | 13 | 61 | 42 | |||||||||||
Gain on extinguishment of debt | (5) | — | (19) | — | |||||||||||
Net interest and other financial costs | 207 | 216 | 854 | 873 | |||||||||||
Income (loss) from operations | 920 | (346) | 211 | 2,377 | |||||||||||
Depreciation and amortization | 385 | 338 | 1,377 | 1,254 | |||||||||||
Non-cash equity-based compensation | 2 | 5 | 14 | 22 | |||||||||||
Impairment expense | — | 1,197 | 2,165 | 1,197 | |||||||||||
Restructuring expenses | 1 | — | 37 | — | |||||||||||
(Income) loss from equity method investments | (76) | (35) | 936 | (290) | |||||||||||
Distributions/adjustments related to equity method investments | 130 | 163 | 499 | 562 | |||||||||||
Unrealized derivative losses (gains)(a) | 2 | 6 | 3 | (1) | |||||||||||
Acquisition costs | — | — | — | 14 | |||||||||||
Other | 1 | — | 6 | 1 | |||||||||||
Adjusted EBITDA | 1,365 | 1,328 | 5,248 | 5,136 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (10) | (9) | (37) | (32) | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | — | — | (770) | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 1,355 | 1,319 | 5,211 | 4,334 | |||||||||||
Deferred revenue impacts | 52 | 27 | 144 | 94 | |||||||||||
Net interest and other financial costs | (207) | (216) | (854) | (873) | |||||||||||
Maintenance capital expenditures | (53) | (88) | (161) | (262) | |||||||||||
Maintenance capital expenditures reimbursements | 15 | 19 | 46 | 53 | |||||||||||
Equity method investment capital expenditures paid out | (7) | (12) | (23) | (28) | |||||||||||
Restructuring expenses | (1) | — | (37) | — | |||||||||||
Other | 1 | (4) | 1 | 12 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | — | — | 159 | |||||||||||
DCF attributable to MPLX LP | 1,155 | 1,045 | 4,327 | 3,489 | |||||||||||
Preferred unit distributions(c) | (30) | (30) | (127) | (122) | |||||||||||
DCF attributable to GP and LP unitholders (excluding predecessor results) | 1,125 | 1,015 | 4,200 | 3,367 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | — | — | 770 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | — | — | (159) | |||||||||||
DCF attributable to GP and LP unitholders (including predecessor results) | $ | 1,125 | $ | 1,015 | $ | 4,200 | $ | 3,978 | |||||||
(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. |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders prior to the acquisition date. |
(c) | Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually), assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders. |
Reconciliation of Net Income to LTM Pro forma adjusted EBITDA (unaudited) | Three Months Ended December 31 | ||||||
(In millions) | 2020 | 2019 | |||||
LTM Net (loss) income | $ | (687) | $ | 1,462 | |||
LTM Net income to adjusted EBITDA adjustments | 5,898 | 2,872 | |||||
LTM Adjusted EBITDA attributable to MPLX LP | 5,211 | 4,334 | |||||
LTM Pro forma/Predecessor adjustments for acquisitions | — | 770 | |||||
LTM Pro forma adjusted EBITDA | 5,211 | 5,104 | |||||
Consolidated debt(a) | $ | 20,536 | $ | 20,713 | |||
Consolidated debt to adjusted EBITDA(b) | 3.9x | 4.1x | |||||
(a) | Consolidated debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated debt includes long-term debt due within one year and borrowing under the loan agreement with MPC. |
(b) | 2019 is shown as historically presented and has not been adjusted for predecessor impacts. |
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 Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net cash provided by operating activities | $ | 1,185 | $ | 1,092 | $ | 4,521 | $ | 4,082 | |||||||
Changes in working capital items | (50) | (26) | (204) | 108 | |||||||||||
All other, net | 3 | 14 | (3) | (9) | |||||||||||
Non-cash equity-based compensation | 2 | 5 | 14 | 22 | |||||||||||
Net (loss) gain on disposal of assets | (3) | 3 | (4) | 6 | |||||||||||
Restructuring expenses | 1 | — | 37 | — | |||||||||||
Current income taxes | 1 | 1 | 3 | 2 | |||||||||||
Gain on extinguishment of debt | (5) | — | (19) | — | |||||||||||
Net interest and other financial costs | 207 | 216 | 854 | 873 | |||||||||||
Asset retirement expenditures | — | — | — | 1 | |||||||||||
Unrealized derivative losses (gains)(a) | 2 | 6 | 3 | (1) | |||||||||||
Acquisition costs | — | — | — | 14 | |||||||||||
Other adjustments related to equity method investments | 21 | 17 | 40 | 37 | |||||||||||
Other | 1 | — | 6 | 1 | |||||||||||
Adjusted EBITDA | 1,365 | 1,328 | 5,248 | 5,136 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (10) | (9) | (37) | (32) | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | — | — | (770) | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 1,355 | 1,319 | 5,211 | 4,334 | |||||||||||
Deferred revenue impacts | 52 | 27 | 144 | 94 | |||||||||||
Net interest and other financial costs | (207) | (216) | (854) | (873) | |||||||||||
Maintenance capital expenditures | (53) | (88) | (161) | (262) | |||||||||||
Maintenance capital expenditures reimbursements | 15 | 19 | 46 | 53 | |||||||||||
Equity method investment capital expenditures paid out | (7) | (12) | (23) | (28) | |||||||||||
Restructuring expenses | (1) | — | (37) | — | |||||||||||
Other | 1 | (4) | 1 | 12 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | — | — | 159 | |||||||||||
DCF attributable to MPLX LP | 1,155 | 1,045 | 4,327 | 3,489 | |||||||||||
Preferred unit distributions(c) | (30) | (30) | (127) | (122) | |||||||||||
DCF attributable to GP and LP unitholders (excluding predecessor results) | 1,125 | 1,015 | 4,200 | 3,367 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | — | — | 770 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | — | — | (159) | |||||||||||
DCF attributable to GP and LP unitholders (including predecessor results) | $ | 1,125 | $ | 1,015 | $ | 4,200 | $ | 3,978 | |||||||
(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. |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable to GP and LP unitholders prior to the acquisition date. |
(c) | Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash distributions earned by the Series B preferred units (as the Series B preferred units are declared and payable semi-annually), assuming a distribution is declared by the Board of Directors. Cash distributions declared/to be paid to holders of the Series A preferred units, Series B preferred units and TexNew Mex units are not available to common unitholders. |
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net cash provided by operating activities(a) | $ | 1,185 | $ | 1,092 | $ | 4,521 | $ | 4,082 | |||||||
Adjustments to reconcile net cash provided by operating activities to free cash flow | |||||||||||||||
Net cash used in investing activities | (202) | (874) | (1,262) | (3,063) | |||||||||||
Contributions from MPC | 16 | 22 | 50 | 74 | |||||||||||
Contributions from noncontrolling interests | — | 1 | — | 95 | |||||||||||
Distributions to noncontrolling interests | (11) | (10) | (37) | (30) | |||||||||||
Free cash flow | 988 | 231 | 3,272 | 1,158 | |||||||||||
Distributions to common and preferred unitholders(b) | (742) | (724) | (3,006) | (3,039) | |||||||||||
Excess (deficit) cash flow(c) | $ | 246 | $ | (493) | $ | 266 | $ | (1,881) | |||||||
(a) | The three and twelve months ended Dec. 31, 2020, include a decrease in working capital of $50 million and $204 million, respectively. The three and twelve months ended Dec. 31, 2019, include a decrease in working capital of $26 million and an increase in working capital of $108 million, respectively. |
(b) | For the twelve months ended Dec. 31, 2019, this amount includes distributions to common unitholders and Series B unitholders attributable to the Predecessor. |
(c) | In the fourth quarter of 2020, $33 million of excess cash flow generated was used to repurchase common units held by the public. |
Capital Expenditures (unaudited) | Three Months Ended Dec. 31 | Twelve Months Ended Dec. 31 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Capital Expenditures: | |||||||||||||||
Growth capital expenditures | $ | 101 | $ | 522 | $ | 778 | $ | 2,000 | |||||||
Growth capital reimbursements | (2) | (4) | (4) | (21) | |||||||||||
Investments in unconsolidated affiliates | 22 | 219 | 266 | 713 | |||||||||||
Return of capital | (11) | (16) | (123) | (18) | |||||||||||
Contributions from noncontrolling interests | — | (1) | — | (95) | |||||||||||
Capitalized interest | (8) | (15) | (39) | (51) | |||||||||||
Total growth capital expenditures | 102 | 705 | 878 | 2,528 | |||||||||||
Maintenance capital expenditures | 53 | 88 | 161 | 262 | |||||||||||
Maintenance capital reimbursements | (15) | (19) | (46) | (53) | |||||||||||
Total maintenance capital expenditures | 38 | 69 | 115 | 209 | |||||||||||
Total growth and maintenance capital expenditures | 140 | 774 | 993 | 2,737 | |||||||||||
Investments in unconsolidated affiliates(a) | (22) | (219) | (266) | (713) | |||||||||||
Return of capital(a) | 11 | 16 | 123 | 18 | |||||||||||
Contributions from noncontrolling interests(b) | — | 1 | — | 95 | |||||||||||
Growth and maintenance capital reimbursements(c) | 17 | 23 | 50 | 74 | |||||||||||
Decrease in capital accruals | 47 | 78 | 244 | 146 | |||||||||||
Capitalized interest | 8 | 15 | 39 | 51 | |||||||||||
Additions to property, plant and equipment, net(a) | $ | 201 | $ | 688 | $ | 1,183 | $ | 2,408 | |||||||
(a) | Investments in unconsolidated affiliate, return of capital and additions to property, plant and equipment, net are shown as separate lines within Investing activities in the Consolidated Statements of Cash Flows. |
(b) | Contributions from noncontrolling interests are shown as separate line within financing activities in the Consolidated Statements of Cash Flows. |
(c) | Growth and maintenance capital reimbursements are included in the contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows. |
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SOURCE MPLX LP
FINDLAY, Ohio, Jan. 28, 2021 /PRNewswire/ -- The board of directors of the general partner of MPLX LP (NYSE: MPLX) has declared a quarterly cash distribution of $0.6875 per common unit for the fourth quarter of 2020, or $2.75 on an annualized basis. The distribution will be paid on Feb. 12, 2021, to common unitholders of record as of Feb. 8, 2021.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of MPLX's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MPLX's distributions to non-United States investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact:
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
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SOURCE MPLX LP
FINDLAY, Ohio, Jan. 26, 2021 /PRNewswire/ -- MPLX LP (NYSE: MPLX) has adjusted the time of its conference call with analysts on Tuesday, Feb. 2, 2021, to begin at 9:30 a.m. EST. During the call, MPLX executives will discuss 2020 fourth-quarter and full-year financial results, which will be released earlier that day, and provide an update on company operations.
Interested parties may listen to the conference call by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related material, will also be available online prior to the conference call and webcast at www.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: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact:
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
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SOURCE MPLX LP
FINDLAY, Ohio, Dec. 29, 2020 /PRNewswire/ -- MPLX LP (NYSE: MPLX) today announced the redemption of all of the $750 million outstanding aggregate principal amount of MPLX's 5.250% senior notes due Jan. 15, 2025, including the approximately $42 million in aggregate principal amount of senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.
The 2025 senior notes will be redeemed on Jan. 15, 2021, at a price equal to 102.625% of the principal amount thereof. The regular semiannual interest payment due on the 2025 senior notes on Jan. 15, 2021, will be paid in the usual manner to holders of record at the close of business on Jan. 1, 2021.
This news release is for informational purposes only and is neither an offer to buy nor a solicitation to sell any of the 2025 senior notes. The foregoing does not constitute a notice of redemption under the indenture governing the 2025 senior notes and is qualified in its entirety by the redemption notices distributed to the holders of the 2025 senior notes under such indenture.
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 Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact: (419) 421-3312
Jamal Kheiry, Manager, Communications
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SOURCE MPLX LP
FINDLAY, Ohio, Nov. 11, 2020 /PRNewswire/ -- WhiteWater Midstream (WWM) and MPLX LP (NYSE: MPLX) today announced the substantial completion of a 1.8 billion cubic-feet-per-day (Bcf/d) expansion of their joint venture Agua Blanca pipeline system. Testing and commissioning of the expansion will begin this month, and the system is anticipated to be brought into full service in early 2021.
The Agua Blanca system is connected to almost 20 gas processing sites in the Delaware Basin and is currently transporting gas produced in Culberson, Loving, Reeves, Pecos, Winkler and Ward counties in Texas, and Eddy and Lea counties in New Mexico, to the Waha Hub. The Agua Blanca expansion includes a 42-inch diameter trunk line that more than doubles system capacity to over 3 Bcf/d while providing significant incremental takeaway capacity for plants servicing Texas and New Mexico gas producers.
"We are excited to bring this expansion into service ahead of schedule while continuing to provide reliable and transparent transportation services to producers and processors in Texas and New Mexico," said WhiteWater Chief Executive Officer Christer Rundlof. "WWM remains committed to developing premier Permian basin residue assets as markets normalize and growth resumes."
WhiteWater Midstream's investment in the Agua Blanca joint venture is led by First Infrastructure Capital. Inquiries regarding the Agua Blanca Expansion should be directed to ab@wwm-llc.com.
About WhiteWater Midstream
WhiteWater Midstream is a management owned, Austin based midstream company. WhiteWater Midstream is partnered with multiple private equity funds including but not limited to Ridgemont Equity Partners, Denham Capital Management, First Infrastructure Capital and the Ontario Power Generation Inc. Pension Plan. Since inception, WhiteWater has reached final investment decision on ~$3 billion in greenfield development projects. For more information about WhiteWater Midstream, visit www.whitewatermidstream.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
About First Infrastructure Capital
First Infrastructure Capital Advisors, LLC is a Houston-based investment firm specializing in greenfield projects and companies operating in the midstream, downstream, electric power, telecommunications, and renewable energy industries. First Infrastructure Capital Advisors, LLC is an SEC-registered investment adviser, which manages funds affiliated with First Infrastructure Capital, L.P. For more information about First Infrastructure Capital, visit www.firstinfracap.com.
Investor Relations Contacts:
WhiteWater Midstream
Bryan Willoughby
Director, Business Development
(512) 953-2100
www.whitewatermidstream.com
MPLX
Kristina Kazarian
Vice President, Investor Relations
(419) 421-2071
This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements relate to, among other things, statements with respect to forecasts regarding capacity, rates, incremental investment, market conditions and timing for becoming operational for the opportunities discussed above. You can identify forward-looking statements by words such as "anticipate," "design," "estimate," "expect," "forecast," "plan," "project," "potential," "target," "could," "may," "should," "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 control of the companies and are difficult to predict. Factors that could impact the opportunities described above are set forth under the heading "Risk Factors" in MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2019, and Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (SEC). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPLX's Forms 10-K and 10-Q could also have material adverse effects on forward-looking statements. Copies of MPLX's Forms 10-K and 10-Q are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
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SOURCE MPLX LP
FINDLAY, Ohio, Nov. 2, 2020 /PRNewswire/ --
MPLX LP (NYSE: MPLX) today reported third-quarter 2020 net income attributable to MPLX of $665 million, compared with $629 million for the third quarter of 2019. Third-quarter 2020 results include a charge of $36 million related to a reimbursement of expenses associated with Marathon Petroleum Corporation's (NYSE: MPC) involuntary workforce reduction plan. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1.3 billion, compared with $1.3 billion in the third quarter of 2019.
The Logistics and Storage (L&S) segment reported segment income from operations of $677 million and adjusted EBITDA of $893 million for the quarter, down $36 million and up $44 million, respectively, versus the third quarter of last year. The Gathering and Processing (G&P) segment reported segment income from operations of $222 million and adjusted EBITDA of $442 million for the quarter, up $9 million and $18 million, respectively, versus the third quarter of last year.
During the quarter, MPLX generated $1.2 billion in net cash provided by operating activities and $1.1 billion of distributable cash flow. Distribution coverage was 1.44x for the third quarter of 2020. MPLX also announced a third-quarter 2020 distribution of $0.6875 per common unit, consistent with the prior quarter.
"Our performance during the third quarter highlights the resiliency and stability of our underlying businesses," said Michael J. Hennigan, chairman, president, and chief executive officer. "In addition to the proactive steps we took earlier this year to reduce capital spending and operating expenses, we took additional necessary steps to reduce our cost structure. The difficult decision to reduce our workforce was not made lightly, and we are committed to treating employees with integrity and respect.
"We continue to believe that we can generate stable EBITDA to support our goal of achieving positive free cash flow, after capital investments and distributions, for 2021, allowing us the financial flexibility to repurchase units or reduce debt. With this in mind, we have obtained board authorization to repurchase up to $1 billion of units."
Financial Highlights | |||||||||||||||||||
Three Months Ended Sept. 30 | Nine Months Ended September 30 | ||||||||||||||||||
(In millions, except per unit and ratio data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net income (loss) attributable to MPLX(a) | $ | 665 | $ | 629 | $ | (1,411) | $ | 1,614 | |||||||||||
Adjusted net income attributable to MPLX(b) | N/A | 681 | N/A | 2,015 | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(c) | 1,335 | 1,273 | 3,856 | 3,785 | |||||||||||||||
Net cash provided by operating activities | 1,222 | 1,036 | 3,336 | 2,990 | |||||||||||||||
Distributable cash flow attributable to MPLX LP(c) | 1,067 | 1,027 | 3,172 | 3,055 | |||||||||||||||
Distribution per common unit(d) | $ | 0.6875 | $ | 0.6775 | $ | 2.0625 | $ | 2.0025 | |||||||||||
Distribution coverage ratio(e) | 1.44x | 1.42x | 1.42x | 1.54x | |||||||||||||||
Consolidated debt to adjusted EBITDA(f) | 4.0x | 4.0x | N/A | N/A | |||||||||||||||
(a) | The nine months ended Sept. 30, 2020 includes impairments related to equity method investments of approximately $1.3 billion, |
(b) | Includes net income attributable to predecessor for the three and nine months ended Sept. 30, 2019. The predecessor period |
(c) | Non-GAAP measures calculated before distributions to preferred unitholders. See reconciliation below. Includes adjusted EBITDA |
(d) | Distributions declared by the board of directors of MPLX's general partner. |
(e) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distributions |
(f) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. See reconciliation |
Segment Results (including predecessor) | |||||||||||||||
(In millions) | Three Months Ended Sept. 30 | Nine Months Ended September 30 | |||||||||||||
Segment income (loss) from operations (unaudited) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Logistics and Storage | $ | 677 | $ | 713 | $ | 2,081 | $ | 2,075 | |||||||
Gathering and Processing | 222 | 213 | (2,790) | 648 | |||||||||||
Segment adjusted EBITDA attributable to MPLX LP (unaudited) | |||||||||||||||
Logistics and Storage | 893 | 849 | 2,604 | 2,498 | |||||||||||
Gathering and Processing | $ | 442 | $ | 424 | $ | 1,252 | $ | 1,287 | |||||||
Logistics & Storage
L&S segment income from operations for the third quarter of 2020 decreased by $36 million and includes a charge of $27 million related to a reimbursement of expenses associated with MPC's involuntary workforce reduction plan. Segment adjusted EBITDA for the third quarter of 2020 increased by $44 million. Both results are compared to the same period in 2019. Results for the quarter benefited from lower operating expenses, minimum volume commitments, and the completion of the Mt. Airy terminal and Utica butane expansion projects, and were partially offset by lower demand due to the COVID-19 pandemic.
Total pipeline throughputs were 4.7 million barrels per day in the third quarter, a decrease of 10% versus the same quarter of 2019. The average tariff rate was $0.93 per barrel for the quarter, an increase of 3% versus the same quarter of 2019. Terminal throughput was 2.7 million barrels per day for the quarter, a decrease of 18% versus the same quarter of 2019.
Gathering & Processing
G&P segment income from operations for the third quarter of 2020 increased by $9 million and includes a charge of $9 million related to a reimbursement of expenses associated with MPC's involuntary workforce reduction plan. Segment adjusted EBITDA for the third quarter of 2020 increased by $18 million. Both results are compared to the same period in 2019. Results for the quarter were primarily driven by higher volumes due to additional plants coming online, partially offset by production curtailments and shut-ins. In the third quarter of 2020:
In the Marcellus and Utica:
Strategic Update
MPLX remains on-track to achieve forecasted 2020 reductions to capital spending by over $700 million and annual operating expenses by approximately $200 million. Incremental to these reductions, MPC implemented a workforce reduction plan to reduce cost structure across the combined enterprise.
The board of directors of MPLX's general partner has authorized a unit repurchase program for the repurchase of up to $1 billion of the outstanding publicly traded common units. MPLX may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, tender offers, accelerated unit repurchases, or open market solicitations for units, some of which may be effected through Rule 10b5-1 plans. The timing and amount of repurchases, if any, will depend upon several factors, including market and business conditions, and repurchases may be initiated, suspended or discontinued at any time. The repurchase authorization has no expiration date.
In the L&S segment, MPLX continues to advance its strategy of creating integrated crude oil and natural gas logistics systems from the Permian to the U.S. Gulf Coast. The Wink to Webster crude oil pipeline, in which MPLX has an equity interest, remains on schedule, with segments and assets expected to come on line throughout 2021. The main segment of the pipeline system started transporting Permian crude oil and condensate from Midland, Texas, to Houston in October. The 36-inch diameter pipeline, of which 100% of the contractible capacity is committed with minimum volume commitments, will originate in the Permian Basin and have destination points in the Houston market, including MPC's Galveston Bay refinery.
Also in the Permian, the Whistler Pipeline is being designed to transport approximately 2 bcf/d of natural gas from Waha, Texas, to the Agua Dulce market in south Texas, ultimately reaching MPC's Galveston Bay refinery. MPLX has an equity interest in Whistler, which is expected to be placed in service in the second half of 2021. Whistler is more than 90% committed with minimum volume commitments.
In August, MPLX, WhiteWater Midstream, and West Texas Gas, Inc. (WTG) announced the formation of a joint venture (JV) to provide natural gas liquids takeaway capacity from MPLX and WTG gas processing plants to Sweeny, Texas. The JV utilizes existing infrastructure with limited new construction and is a capital-efficient solution to support producer customers.
Financial Position and Liquidity
As of Sept. 30, 2020, MPLX had $28 million in cash, $3.4 billion available through its bank revolving credit facility expiring in July 2024 and $1.5 billion available through its intercompany loan agreement with MPC. The company's leverage ratio was 4.0x at Sept. 30, 2020.
During the quarter, MPLX issued $3.0 billion aggregate principal amount of unsecured senior notes in an underwritten public offering consisting of $1.5 billion aggregate principal amount of 1.750% senior notes due 2026 and $1.5 billion aggregate principal amount of 2.650% senior notes due in 2030.
During the third quarter, MPLX used a portion of the net proceeds from this offering to repay or redeem the $1.0 billion term loan borrowing maturing in 2021, the $1.0 billion aggregate principal amount of its floating rate senior notes due 2021, and the $450 million aggregate principal amount of its 6.375% senior notes due 2024. MPLX also used a portion of the net proceeds to redeem all of the $300 million aggregate principal amount of its 6.250% senior notes due 2022, in October 2020. The remainder of the proceeds from the notes offering have or will be used for general partnership purposes.
MPLX remains committed to maintaining an investment-grade credit profile.
Conference Call
At 11 a.m. EST today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this earnings release and other investor-related material, will also be available online prior to the conference call and webcast at www.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 Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact: (419) 421-3312
Jamal Kheiry, Manager, Communications
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, MPLX's expectations, estimates and projections concerning the business and operations, financial priorities and strategic plans of MPLX. 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," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "proposition," "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 but are not limited to: the effects of the recent outbreak of COVID-19, including any related government policies and actions, and the adverse impact thereof on our business, financial condition, results of operations and cash flows, including, but not limited to, our growth, operating costs, labor availability, logistical capabilities, customer demand for our services and industry demand generally, cash position, taxes, the price of our securities and trading markets with respect thereto, our ability to access capital markets, and the global economy and financial markets generally; the ability to reduce capital and operating expenses; the risk of further impairments; the risk that anticipated opportunities and any other synergies from or benefits of the Andeavor Logistics LP (ANDX) acquisition may not be fully realized or may take longer to realize than expected, including whether the transaction will be accretive within the expected timeframe or at all; disruption from the 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 positive free cash flow in 2021, and with respect to distribution coverage, future distribution levels, proposed projects and completed transactions; the success of Marathon Petroleum Corporation's (MPC) portfolio optimization, including the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; 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 and to effect any common unit repurchases; 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 as a result of the COVID-19 pandemic (including any related government policies and actions), other infectious disease outbreaks, natural hazards, extreme weather events or otherwise; non-payment or non-performance by our producer and other customers; 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 MPC's obligations under MPLX'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 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, 2019, and in Forms 10-Q and other filings, 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 but are not limited to: the effects of the recent outbreak of COVID-19, including any related government policies and actions, and the adverse impact thereof on the business, financial condition, results of operations and cash flows, including, but not limited to, growth, operating costs, labor availability, logistical capabilities, customer demand for products and industry demand generally, margins, inventory value, cash position, taxes, the price of securities and trading markets with respect thereto, the ability to access capital markets, and the global economy and financial markets generally; the effects of the recent outbreak of COVID-19, and the current economic environment generally, on working capital, cash flows and liquidity, which can be significantly affected by decreases in commodity prices; the ability to reduce capital and operating expenses; with respect to the proposed sale of Speedway, the ability to successfully complete the sale within the expected timeframe, on the expected terms, or at all, based on numerous factors, including the failure to satisfy any of the conditions to the consummation of the proposed transaction (including obtaining certain governmental or regulatory approvals on the proposed terms and schedule), the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; MPC's ability to utilize the proceeds as anticipated; the risk that the dissynergy costs, costs of restructuring transactions and other costs incurred in connection with the proposed transaction will exceed our estimates; and our ability to capture value and realize the other expected benefits from the associated ongoing supply relationship following consummation of the proposed sale; the risk that the cost savings and any other synergies from MPC's acquisition of Andeavor and the ANDX acquisition may not be fully realized or may take longer to realize than expected, including whether the ANDX transaction will be accretive within the expected timeframe or at all; disruption from the Andeavor or ANDX transactions making it more difficult to maintain relationships with customers, employees or suppliers; risks relating to any unforeseen liabilities of Andeavor or ANDX, respectively; the risk of further impairments; the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; future levels of revenues, refining and marketing margins, operating costs, gasoline and distillate margins, merchandise margins, income from operations, net income and 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 and maintenance expenditures; general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects, including the potential conversion of MPC's Martinez Refinery to a renewable diesel facility; the receipt of relevant third party and/or regulatory approvals; the reliability of processing units and other equipment; the successful realization of business strategies, growth opportunities and expected investment; share repurchase authorizations, including the timing and amounts of such repurchases; the adequacy of capital resources and liquidity, including availability, timing and amounts of free cash flow necessary to execute business plans, complete announced capital projects and to effect any share repurchases or to maintain or increase the dividend; the effect of restructuring or reorganization of business components, including those undertaken in connection with the Speedway sale and workforce reduction; the potential effects of judicial or other proceedings, including remedial actions involving removal and reclamation obligations under environmental regulations, 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 as a result of the COVID-19 pandemic (including any related government policies and actions), other infectious disease outbreaks, natural hazards, extreme weather events or otherwise; general economic, political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas or NGLs, regulation or taxation and other economic and political developments (including those caused by public health issues and outbreaks); non-payment or non-performance by producer and other customers; compliance with federal and state environmental, economic, health and safety, energy and other policies, permitting and regulations, including the cost of compliance with the Renewable Fuel Standard, and/or enforcement actions initiated thereunder; the 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; 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, 2019, and in Forms 10-Q and other filings, filed with the SEC.
We have based our forward-looking statements on our current expectations, estimates and projections about our business and 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 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. Any forward-looking statements speak only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statements except to the extent required by applicable law. Copies of MPLX's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.
Condensed Results of Operations (unaudited) | Three Months Ended Sept. 30 | Nine Months Ended September 30 | |||||||||||||
(In millions, except per unit data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenues and other income: | |||||||||||||||
Operating revenue | $ | 912 | $ | 928 | $ | 2,631 | $ | 2,818 | |||||||
Operating revenue - related parties | 1,187 | 1,224 | 3,506 | 3,562 | |||||||||||
Income (loss) from equity method investments | 83 | 95 | (1,012) | 255 | |||||||||||
Other income | 65 | 33 | 195 | 90 | |||||||||||
Total revenues and other income | 2,247 | 2,280 | 5,320 | 6,725 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating expenses | 508 | 573 | 1,481 | 1,691 | |||||||||||
Operating expenses - related parties | 329 | 348 | 972 | 1,018 | |||||||||||
Depreciation and amortization | 346 | 302 | 992 | 916 | |||||||||||
Impairment expense | — | — | 2,165 | — | |||||||||||
General and administrative expenses | 96 | 102 | 289 | 293 | |||||||||||
Restructuring expenses | 36 | — | 36 | — | |||||||||||
Other taxes | 33 | 29 | 94 | 84 | |||||||||||
Total costs and expenses | 1,348 | 1,354 | 6,029 | 4,002 | |||||||||||
Income (loss) from operations | 899 | 926 | (709) | 2,723 | |||||||||||
Interest and other financial costs | 224 | 233 | 677 | 686 | |||||||||||
Income (loss) before income taxes | 675 | 693 | (1,386) | 2,037 | |||||||||||
(Benefit) provision for income taxes | 1 | 4 | 1 | 2 | |||||||||||
Net income (loss) | 674 | 689 | (1,387) | 2,035 | |||||||||||
Less: Net income attributable to noncontrolling interests | 9 | 8 | 24 | 20 | |||||||||||
Less: Net income attributable to Predecessor | — | 52 | — | 401 | |||||||||||
Net income (loss) attributable to MPLX LP | 665 | 629 | (1,411) | 1,614 | |||||||||||
Less: Series A preferred unit distributions | 20 | 20 | 61 | 61 | |||||||||||
Less: Series B preferred unit distributions | 10 | 7 | 31 | 7 | |||||||||||
Limited partners' interest in net income (loss) | $ | 635 | $ | 602 | $ | (1,503) | $ | 1,546 | |||||||
Per Unit Data | |||||||||||||||
Net income (loss) attributable to MPLX LP per | |||||||||||||||
Common - basic | $ | 0.61 | $ | 0.61 | $ | (1.43) | $ | 1.78 | |||||||
Common - diluted | $ | 0.61 | $ | 0.61 | $ | (1.43) | $ | 1.78 | |||||||
Weighted average limited partner units | |||||||||||||||
Common units – basic | 1,046 | 974 | 1,054 | 855 | |||||||||||
Common units – diluted | 1,047 | 975 | 1,054 | 855 | |||||||||||
Select Financial Statistics (unaudited) | Three Months Ended Sept. 30 | Nine Months Ended September 30 | |||||||||||||
(In millions, except ratio data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Common unit distributions declared by MPLX | |||||||||||||||
Common units (LP) - public(a) | $ | 270 | $ | 266 | $ | 810 | $ | 718 | |||||||
Common units - MPC(a) | 445 | 438 | 1,348 | 1,201 | |||||||||||
Total GP and LP distribution declared | 715 | 704 | 2,158 | 1,919 | |||||||||||
Preferred unit distributions(b) | |||||||||||||||
Series A preferred unit distributions(c) | 20 | 20 | 61 | 61 | |||||||||||
Series B preferred unit distributions(d) | 10 | 10 | 31 | 31 | |||||||||||
Total preferred unit distributions | 30 | 30 | 92 | 92 | |||||||||||
Other Financial Data | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(e)(f) | 1,335 | 1,273 | 3,856 | 3,785 | |||||||||||
DCF attributable to GP and LP unitholders(e)(f) | $ | 1,032 | $ | 997 | $ | 3,075 | $ | 2,963 | |||||||
Distribution coverage ratio(g) | 1.44x | 1.42x | 1.42x | 1.54x | |||||||||||
Cash Flow Data | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 1,222 | $ | 1,036 | $ | 3,336 | $ | 2,990 | |||||||
Investing activities | (283) | (750) | (1,060) | (2,189) | |||||||||||
Financing activities | $ | (978) | $ | (277) | $ | (2,263) | $ | (845) | |||||||
(a) | The distribution on common units for the three and nine months ended Sept. 30, 2019 includes the impact of the issuance of |
(b) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the |
(c) | Series A preferred units are considered redeemable securities due to the existence of redemption provisions upon a deemed |
(d) | Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually |
(e) | Non-GAAP measure. See reconciliation below. |
(f) | Includes predecessor EBITDA and DCF that is attributable to the period prior to the acquisition date of July 30, 2019. For the |
(g) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution |
Select Balance Sheet Data (unaudited) | |||||||
(In millions, except ratio data) | September 30, 2020 | December 31, | |||||
Cash and cash equivalents | $ | 28 | $ | 15 | |||
Total assets | 36,662 | 40,430 | |||||
Total long-term debt(a) | 20,349 | 20,307 | |||||
Redeemable preferred units | 968 | 968 | |||||
Total equity | $ | 13,095 | $ | 16,613 | |||
Consolidated total debt to adjusted EBITDA(b) | 4.0x | 4.1x | |||||
Partnership units outstanding: | |||||||
MPC-held common units | 647 | 666 | |||||
Public common units | 393 | 392 | |||||
(a) | Outstanding intercompany borrowings were zero as of Sept. 30, 2020 and $594 million as of Dec. 31, 2019. Includes current portion |
(b) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. Face value total debt |
Operating Statistics (unaudited)(a) | Three Months Ended Sept. 30 | Nine Months Ended September 30 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Logistics and Storage | |||||||||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||||||||
Crude oil pipelines | 3,077 | 3,367 | (9) | % | 3,007 | 3,240 | (7) | % | |||||||||||||
Product pipelines | 1,613 | 1,859 | (13) | % | 1,701 | 1,875 | (9) | % | |||||||||||||
Total pipelines | 4,690 | 5,226 | (10) | % | 4,708 | 5,115 | (8) | % | |||||||||||||
Average tariff rates ($ per barrel) | |||||||||||||||||||||
Crude oil pipelines | $ | 0.96 | $ | 0.97 | (1) | % | $ | 0.96 | $ | 0.94 | 2 | % | |||||||||
Product pipelines | 0.85 | 0.77 | 10 | % | 0.82 | 0.73 | 12 | % | |||||||||||||
Total pipelines | $ | 0.93 | $ | 0.90 | 3 | % | 0.91 | 0.86 | 6 | % | |||||||||||
Terminal throughput (mbpd) | 2,701 | 3,292 | (18) | % | 2,696 | 3,267 | (17) | % | |||||||||||||
Barges at period-end | 301 | 264 | 14 | % | 301 | 264 | 14 | % | |||||||||||||
Towboats at period-end | 23 | 23 | — | % | 23 | 23 | — | % | |||||||||||||
(a) | Statistics for the three and nine months ended Sept. 30, 2019 are inclusive of predecessor operations. |
Gathering and | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,312 | 1,271 | 3 | % | 1,372 | 1,273 | 8 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 1,312 | 1,271 | 3 | % | 1,372 | 1,273 | 8 | % | |||||||||||||
Southwest Operations | 1,413 | 1,653 | (15) | % | 1,445 | 1,618 | (11) | % | |||||||||||||
Bakken Operations | 130 | 149 | (13) | % | 137 | 149 | (8) | % | |||||||||||||
Rockies Operations | 481 | 627 | (23) | % | 523 | 639 | (18) | % | |||||||||||||
Total gathering throughput | 3,336 | 3,700 | (10) | % | 3,477 | 3,679 | (5) | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,222 | 4,264 | (1) | % | 4,177 | 4,211 | (1) | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 4,222 | 4,264 | (1) | % | 4,177 | 4,211 | (1) | % | |||||||||||||
Southwest Operations | 1,377 | 1,667 | (17) | % | 1,479 | 1,608 | (8) | % | |||||||||||||
Southern Appalachian Operations | 227 | 254 | (11) | % | 231 | 244 | (5) | % | |||||||||||||
Bakken Operations | 129 | 149 | (13) | % | 137 | 149 | (8) | % | |||||||||||||
Rockies Operations | 481 | 568 | (15) | % | 512 | 575 | (11) | % | |||||||||||||
Total natural gas processed | 6,436 | 6,902 | (7) | % | 6,536 | 6,787 | (4) | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 477 | 433 | 10 | % | 466 | 431 | 8 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 477 | 433 | 10 | % | 466 | 431 | 8 | % | |||||||||||||
Southwest Operations | 21 | 19 | 11 | % | 16 | 13 | 23 | % | |||||||||||||
Southern Appalachian Operations | 11 | 13 | (15) | % | 12 | 12 | — | % | |||||||||||||
Bakken Operations | 25 | 29 | (14) | % | 25 | 22 | 14 | % | |||||||||||||
Rockies Operations | 3 | 4 | (25) | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 537 | 498 | 8 | % | 523 | 482 | 9 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements. Statistics for the three and nine |
(b) | The Utica region relates to operations for partnership-operated equity method investments and thus does not have any operating |
Gathering and Statistics (unaudited) - | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,312 | 1,271 | 3 | % | 1,372 | 1,273 | 8 | % | |||||||||||||
Utica Operations | 1,816 | 2,381 | (24) | % | 1,840 | 2,186 | (16) | % | |||||||||||||
Subtotal | 3,128 | 3,652 | (14) | % | 3,212 | 3,459 | (7) | % | |||||||||||||
Southwest Operations | 1,479 | 1,653 | (11) | % | 1,491 | 1,618 | (8) | % | |||||||||||||
Bakken Operations | 130 | 149 | (13) | % | 137 | 149 | (8) | % | |||||||||||||
Rockies Operations | 659 | 827 | (20) | % | 706 | 835 | (15) | % | |||||||||||||
Total gathering throughput | 5,396 | 6,281 | (14) | % | 5,546 | 6,061 | (8) | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 5,706 | 5,300 | 8 | % | 5,582 | 5,218 | 7 | % | |||||||||||||
Utica Operations | 530 | 866 | (39) | % | 587 | 835 | (30) | % | |||||||||||||
Subtotal | 6,236 | 6,166 | 1 | % | 6,169 | 6,053 | 2 | % | |||||||||||||
Southwest Operations | 1,439 | 1,667 | (14) | % | 1,543 | 1,608 | (4) | % | |||||||||||||
Southern Appalachian Operations | 227 | 254 | (11) | % | 231 | 244 | (5) | % | |||||||||||||
Bakken Operations | 129 | 149 | (13) | % | 137 | 149 | (8) | % | |||||||||||||
Rockies Operations | 481 | 568 | (15) | % | 512 | 575 | (11) | % | |||||||||||||
Total natural gas processed | 8,512 | 8,804 | (3) | % | 8,592 | 8,629 | — | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 477 | 433 | 10 | % | 466 | 431 | 8 | % | |||||||||||||
Utica Operations | 30 | 49 | (39) | % | 32 | 45 | (29) | % | |||||||||||||
Subtotal | 507 | 482 | 5 | % | 498 | 476 | 5 | % | |||||||||||||
Southwest Operations | 21 | 19 | 11 | % | 16 | 13 | 23 | % | |||||||||||||
Southern Appalachian Operations | 11 | 13 | (15) | % | 12 | 12 | — | % | |||||||||||||
Bakken Operations | 25 | 29 | (14) | % | 25 | 22 | 14 | % | |||||||||||||
Rockies Operations | 3 | 4 | (25) | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 567 | 547 | 4 | % | 555 | 527 | 5 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for |
Reconciliation of Segment Adjusted EBITDA to | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
L&S segment adjusted EBITDA attributable to | $ | 893 | $ | 849 | $ | 2,604 | $ | 2,498 | |||||||
G&P segment adjusted EBITDA attributable to | 442 | 424 | 1,252 | 1,287 | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 1,335 | 1,273 | 3,856 | 3,785 | |||||||||||
Depreciation and amortization | (346) | (302) | (992) | (916) | |||||||||||
Provision for income taxes | (1) | (4) | (1) | (2) | |||||||||||
Amortization of deferred financing costs | (15) | (10) | (44) | (29) | |||||||||||
Gain on extinguishment of debt | 14 | — | 14 | — | |||||||||||
Non-cash equity-based compensation | (4) | (5) | (12) | (17) | |||||||||||
Impairment expense | — | — | (2,165) | — | |||||||||||
Restructuring expenses | (36) | — | (36) | — | |||||||||||
Net interest and other financial costs | (223) | (223) | (647) | (657) | |||||||||||
Income (loss) from equity method investments(a) | 83 | 95 | (1,012) | 255 | |||||||||||
Distributions/adjustments related to equity method | (130) | (145) | (369) | (399) | |||||||||||
Unrealized derivative (losses) gains(b) | (10) | 11 | (1) | 7 | |||||||||||
Acquisition costs | — | (9) | — | (14) | |||||||||||
Other | (3) | (1) | (5) | (1) | |||||||||||
Adjusted EBITDA attributable to noncontrolling | 10 | 9 | 27 | 23 | |||||||||||
Net income (loss) | $ | 674 | $ | 689 | $ | (1,387) | $ | 2,035 | |||||||
(a) | Includes impairment charges of $1,264 million for the nine months ended Sept. 30, 2020. |
(b) | MPLX makes a distinction between realized and unrealized gains and losses on derivatives. |
L&S Reconciliation of Segment Income from | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
L&S segment income from operations | $ | 677 | $ | 713 | $ | 2,081 | $ | 2,075 | |||||||
Depreciation and amortization | 164 | 113 | 440 | 373 | |||||||||||
Restructuring expenses | 27 | — | 27 | — | |||||||||||
Income from equity method investments | (36) | (60) | (126) | (159) | |||||||||||
Distributions/adjustments related to equity method investments | 55 | 70 | 169 | 184 | |||||||||||
Acquisition costs | — | 9 | — | 14 | |||||||||||
Non-cash equity-based compensation | 3 | 3 | 8 | 10 | |||||||||||
Other | 3 | 1 | 5 | 1 | |||||||||||
L&S segment adjusted EBITDA attributable to | 893 | 849 | 2,604 | 2,498 | |||||||||||
L&S predecessor segment adjusted EBITDA | — | (83) | — | (603) | |||||||||||
L&S segment adjusted EBITDA attributable to | $ | 893 | $ | 766 | $ | 2,604 | $ | 1,895 | |||||||
G&P Reconciliation of Segment Income from | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
G&P segment income (loss) from operations | $ | 222 | $ | 213 | $ | (2,790) | $ | 648 | |||||||
Depreciation and amortization | 182 | 189 | 552 | 543 | |||||||||||
Impairment expense | — | — | 2,165 | — | |||||||||||
Restructuring expenses | 9 | — | 9 | — | |||||||||||
(Income) loss from equity method investments | (47) | (35) | 1,138 | (96) | |||||||||||
Distributions/adjustments related to equity method investments | 75 | 75 | 200 | 215 | |||||||||||
Unrealized derivative losses (gains)(a) | 10 | (11) | 1 | (7) | |||||||||||
Non-cash equity-based compensation | 1 | 2 | 4 | 7 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (10) | (9) | (27) | (23) | |||||||||||
G&P segment adjusted EBITDA attributable to | 442 | 424 | 1,252 | 1,287 | |||||||||||
G&P predecessor segment adjusted EBITDA | — | (25) | — | (167) | |||||||||||
G&P segment adjusted EBITDA attributable to | $ | 442 | $ | 399 | $ | 1,252 | $ | 1,120 | |||||||
(a) | MPLX makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative |
Reconciliation of Adjusted EBITDA Attributable | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net income (loss) | $ | 674 | $ | 689 | $ | (1,387) | $ | 2,035 | |||||||
Provision for income taxes | 1 | 4 | 1 | 2 | |||||||||||
Amortization of deferred financing costs | 15 | 10 | 44 | 29 | |||||||||||
Gain on extinguishment of debt | (14) | — | (14) | — | |||||||||||
Net interest and other financial costs | 223 | 223 | 647 | 657 | |||||||||||
Income (loss) from operations | 899 | 926 | (709) | 2,723 | |||||||||||
Depreciation and amortization | 346 | 302 | 992 | 916 | |||||||||||
Non-cash equity-based compensation | 4 | 5 | 12 | 17 | |||||||||||
Impairment expense | — | — | 2,165 | — | |||||||||||
Restructuring expenses | 36 | — | 36 | — | |||||||||||
(Income) loss from equity method investments | (83) | (95) | 1,012 | (255) | |||||||||||
Distributions/adjustments related to equity method | 130 | 145 | 369 | 399 | |||||||||||
Unrealized derivative losses (gains)(a) | 10 | (11) | 1 | (7) | |||||||||||
Acquisition costs | — | 9 | — | 14 | |||||||||||
Other | 3 | 1 | 5 | 1 | |||||||||||
Adjusted EBITDA | 1,345 | 1,282 | 3,883 | 3,808 | |||||||||||
Adjusted EBITDA attributable to noncontrolling | (10) | (9) | (27) | (23) | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | (108) | — | (770) | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 1,335 | 1,165 | 3,856 | 3,015 | |||||||||||
Deferred revenue impacts | 29 | 36 | 92 | 67 | |||||||||||
Net interest and other financial costs | (223) | (223) | (647) | (657) | |||||||||||
Maintenance capital expenditures | (41) | (75) | (108) | (174) | |||||||||||
Maintenance capital expenditures reimbursements | 11 | 18 | 31 | 34 | |||||||||||
Equity method investment capital expenditures | (5) | (8) | (16) | (16) | |||||||||||
Restructuring expenses | (36) | — | (36) | — | |||||||||||
Other | (3) | 6 | — | 16 | |||||||||||
Portion of DCF adjustments attributable to | — | 27 | — | 159 | |||||||||||
DCF attributable to MPLX LP | 1,067 | 946 | 3,172 | 2,444 | |||||||||||
Preferred unit distributions(c) | (35) | (30) | (97) | (92) | |||||||||||
DCF attributable to GP and LP unitholders | 1,032 | 916 | 3,075 | 2,352 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | 108 | — | 770 | |||||||||||
Portion of DCF adjustments attributable to | — | (27) | — | (159) | |||||||||||
DCF attributable to GP and LP unitholders | $ | 1,032 | $ | 997 | $ | 3,075 | $ | 2,963 | |||||||
(a) | MPLX makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF |
(c) | Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash |
Reconciliation of Net Income to LTM Pro forma adjusted EBITDA (unaudited) | Three Months Ended September 30 | ||||||
(In millions) | 2020 | 2019 | |||||
LTM Net (loss) income | $ | (1,960) | $ | 2,126 | |||
LTM Net income to adjusted EBITDA adjustments | 7,135 | 1,908 | |||||
LTM Adjusted EBITDA attributable to MPLX LP | 5,175 | 4,034 | |||||
LTM Pro forma/Predecessor adjustments for acquisitions | — | 1,001 | |||||
LTM Pro forma adjusted EBITDA | 5,175 | 5,035 | |||||
Consolidated debt | $ | 20,757 | $ | 20,245 | |||
Consolidated debt to adjusted EBITDA(a) | 4.0x | 4.0x | |||||
(a) | 2019 is shown as historically presented and has not been adjusted for predecessor impacts. |
Reconciliation of Adjusted EBITDA Attributable | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net cash provided by operating activities | $ | 1,222 | $ | 1,036 | $ | 3,336 | $ | 2,990 | |||||||
Changes in working capital items | (166) | 22 | (154) | 134 | |||||||||||
All other, net | 20 | (16) | (6) | (23) | |||||||||||
Non-cash equity-based compensation | 4 | 5 | 12 | 17 | |||||||||||
Net gain (loss) on disposal of assets | — | 1 | (1) | 3 | |||||||||||
Restructuring expenses | 36 | — | 36 | — | |||||||||||
Current income taxes | 1 | 1 | 2 | 1 | |||||||||||
Gain on extinguishment of debt | (14) | — | (14) | — | |||||||||||
Net interest and other financial costs | 223 | 223 | 647 | 657 | |||||||||||
Asset retirement expenditures | — | — | — | 1 | |||||||||||
Unrealized derivative losses (gains)(a) | 10 | (11) | 1 | (7) | |||||||||||
Acquisition costs | — | 9 | — | 14 | |||||||||||
Other adjustments related to equity method investments | 6 | 11 | 19 | 20 | |||||||||||
Other | 3 | 1 | 5 | 1 | |||||||||||
Adjusted EBITDA | 1,345 | 1,282 | 3,883 | 3,808 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (10) | (9) | (27) | (23) | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | (108) | — | (770) | |||||||||||
Adjusted EBITDA attributable to MPLX LP | 1,335 | 1,165 | 3,856 | 3,015 | |||||||||||
Deferred revenue impacts | 29 | 36 | 92 | 67 | |||||||||||
Net interest and other financial costs | (223) | (223) | (647) | (657) | |||||||||||
Maintenance capital expenditures | (41) | (75) | (108) | (174) | |||||||||||
Maintenance capital expenditures reimbursements | 11 | 18 | 31 | 34 | |||||||||||
Equity method investment capital expenditures paid out | (5) | (8) | (16) | (16) | |||||||||||
Restructuring expenses | (36) | — | (36) | — | |||||||||||
Other | (3) | 6 | — | 16 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | 27 | — | 159 | |||||||||||
DCF attributable to MPLX LP | 1,067 | 946 | 3,172 | 2,444 | |||||||||||
Preferred unit distributions(c) | (35) | (30) | (97) | (92) | |||||||||||
DCF attributable to GP and LP unitholders | 1,032 | 916 | 3,075 | 2,352 | |||||||||||
Adjusted EBITDA attributable to predecessor(b) | — | 108 | — | 770 | |||||||||||
Portion of DCF adjustments attributable to predecessor(b) | — | (27) | — | (159) | |||||||||||
DCF attributable to GP and LP unitholders | $ | 1,032 | $ | 997 | $ | 3,075 | $ | 2,963 | |||||||
(a) | MPLX makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, |
(b) | The adjusted EBITDA and DCF adjustments related to predecessor are excluded from adjusted EBITDA attributable to MPLX LP and DCF attributable |
(c) | Includes MPLX distributions declared on the Series A preferred units, Series B preferred units and TexNew Mex units, as well as cash distributions |
Capital Expenditures (unaudited) | Three Months Ended Sept. 30 | Nine Months Ended Sept. 30 | |||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Capital Expenditures: | |||||||||||||||
Maintenance | $ | 41 | $ | 75 | $ | 108 | $ | 174 | |||||||
Maintenance reimbursements | (11) | (18) | (31) | (34) | |||||||||||
Growth | 208 | 518 | 677 | 1,479 | |||||||||||
Growth reimbursements | (2) | (5) | (2) | (17) | |||||||||||
Total capital expenditures | 236 | 570 | 752 | 1,602 | |||||||||||
Less: Increase (decrease) in capital accruals | (25) | 10 | (197) | (67) | |||||||||||
Asset retirement expenditures | — | — | — | 1 | |||||||||||
Additions to property, plant and equipment, net(a) | 261 | 560 | 949 | 1,668 | |||||||||||
Investments in unconsolidated affiliates | 22 | 171 | 244 | 494 | |||||||||||
Acquisitions | — | — | — | (6) | |||||||||||
Total capital expenditures and acquisitions | 283 | 731 | 1,193 | 2,156 | |||||||||||
Less: Maintenance capital expenditures (including | 30 | 57 | 77 | 140 | |||||||||||
Acquisitions | — | — | — | (6) | |||||||||||
Total growth capital expenditures(b) | $ | 253 | $ | 674 | $ | 1,116 | $ | 2,022 | |||||||
(a) | This amount is represented in the Consolidated Statements of Cash Flows as Additions to property, plant and equipment after excluding growth |
(b) | Amount excludes contributions from noncontrolling interests of $94 million for the nine months ended Sept. 30, 2019, as reflected in the |
2020 adjusted growth capital expenditures | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||
(In millions) | |||||||
Total growth capital expenditures | $ | 253 | $ | 1,116 | |||
Decrease in capital accruals | (25) | (197) | |||||
Capitalized interest | (8) | (29) | |||||
Return of Capital | (2) | (112) | |||||
Total adjusted growth capital expenditures | $ | 218 | $ | 778 | |||
View original content:http://www.prnewswire.com/news-releases/mplx-lp-reports-third-quarter-2020-financial-results-301164735.html
SOURCE MPLX LP
FINDLAY, Ohio, Oct. 27, 2020 /PRNewswire/ -- The board of directors of the general partner of MPLX LP (NYSE: MPLX) has declared a quarterly cash distribution of $0.6875 per common unit for the third quarter of 2020, or $2.75 on an annualized basis. The distribution will be paid on Nov. 13, 2020, to common unitholders of record as of Nov. 6, 2020.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of MPLX's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MPLX's distributions to non-United States investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact:
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
View original content:http://www.prnewswire.com/news-releases/mplx-lp-announces-quarterly-distribution-301161102.html
SOURCE MPLX LP
FINDLAY, Ohio, Oct. 23, 2020 /PRNewswire/ -- MPLX LP (NYSE: MPLX) announced today that it will extend its binding open season for the expansion of the SLC Core Pipeline System by two weeks. In response to feedback from potential shippers, MPLX is making modest revisions to its transportation service agreement under the open season process. The binding open season will be extended to Nov. 6, 2020, at 12 p.m. CST to allow potential shippers adequate time to review these revisions, and to provide additional time to finalize commitments.
The proposed SLC Core Pipeline System capacity expansion would provide shippers access to the Guernsey crude oil market hub and access to additional crude oil grades for refiners in the Salt Lake City, Utah, area. The expansion would provide incremental pipeline capacity of approximately 11,000 barrels per day (bpd), reinstating origin service from Fort Laramie, Wyoming. This expansion would bring total capacity on the SLC Core Pipeline to approximately 56,000 bpd, and is expected to begin service in the first quarter of 2022.
The SLC Core Pipeline System, owned by Tesoro Logistics Northwest Pipeline LLC, a subsidiary of MPLX, is a common carrier system transporting crude oil from various points in Wyoming to Wahsatch Station, Utah, with a connection to a third-party pipeline at Wahsatch Station for further transportation to refineries in the Salt Lake City area, with approximate total delivery capacity of 45,000 bpd.
The binding open season began on Monday, Sept. 21, 2020.
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: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Media Contact:
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
Commercial Contacts:
Greg Henderson (210) 626-4585
Ryan Robins (210) 626-4971
This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements relate to, among other things, statements with respect to forecasts regarding the need for additional pipeline capacity. You can identify forward-looking statements by words such as "anticipate," "believe," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "objective," "opportunity," "outlook," "plan," "position," "pursue," "prospective," "predict," "project," "potential," "seek," "strategy," "target," "could," "may," "should," "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 control of the companies and are difficult to predict. Factors that could impact the opportunities described above are: 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; completion of pipeline capacity by competitors; the ability to obtain required regulatory approvals on a timely basis; the occurrence of an operational hazard or unforeseen interruption; 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, 2019, and Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (SEC). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPLX's Forms 10-K and 10-Q could also have material adverse effects on forward-looking statements. Copies of MPLX's Forms 10-K and 10-Q are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
View original content:http://www.prnewswire.com/news-releases/mplx-announces-extension-of-binding-open-season-for-proposed-expansion-of-slc-core-pipeline-system-301158713.html
SOURCE MPLX LP
FINDLAY, Ohio, Sept. 21, 2020 /PRNewswire/ -- MPLX LP (NYSE: MPLX) today launched a binding open season to assess shipper interest in firm priority capacity on the SLC Core Pipeline System, located in Wyoming, to transport crude oil from Fort Laramie Station, Wyoming, to Wahsatch Station, Utah. From Wahsatch Station, crude transportation service is available on a third-party system for ultimate delivery to refineries in the Salt Lake City, Utah, area.
The binding open season will commence on Sept. 21, 2020 and will end at noon CDT on Oct. 23, 2020.
About the SLC Core Expansion
The proposed SLC Core Pipeline System capacity expansion would provide shippers access to the Guernsey crude oil market hub and access to additional crude oil grades for refiners in the Salt Lake City area. The expansion would provide incremental pipeline capacity of approximately 11,000 barrels per day (bpd), reinstating origin service from Fort Laramie, Wyoming. This expansion would bring total capacity on the SLC Core Pipeline to approximately 56,000 bpd and is expected to begin service in the first quarter of 2022.
About the SLC Core Pipeline System
The SLC Core Pipeline System, owned by Tesoro Logistics Northwest Pipeline LLC, a subsidiary of MPLX, is a common carrier system transporting crude oil from various points in Wyoming to Wahsatch Station, Utah, with a connection to a third-party pipeline at Wahsatch Station for further transportation to refineries in the Salt Lake City area, with approximate total delivery capacity of 45,000 bpd.
Open Season Process
Documents and further details related to the binding open season will be made available upon completion of a Confidentiality Agreement, available at: www.MPLX.com
All interested shippers should submit an executed Confidentiality Agreement to:
Martin Marz
Attorney
19100 Ridgewood Parkway
San Antonio, TX 78259
Telephone: 210-626-6517
Email: mjmarz@marathonpetroleum.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: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Evan Barbosa, Manager, Investor Relations
Jim Mallamaci, Manager, Investor Relations
Media Contacts:
Hamish Banks, Vice President, Corporate Communications (419) 421-2521
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
Commercial Contacts:
Greg Henderson (210) 626-4585
Ryan Robins (210) 626-4971
This press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements relate to, among other things, statements with respect to forecasts regarding the need for additional pipeline capacity. You can identify forward-looking statements by words such as "anticipate," "believe," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "objective," "opportunity," "outlook," "plan," "position," "pursue," "prospective," "predict," "project," "potential," "seek," "strategy," "target," "could," "may," "should," "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 control of the companies and are difficult to predict. Factors that could impact the opportunities described above are: 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; completion of pipeline capacity by competitors; the ability to obtain required regulatory approvals on a timely basis; the occurrence of an operational hazard or unforeseen interruption; 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, 2019, and Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (SEC). In addition, the forward-looking statements included herein could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed here or in MPLX's Forms 10-K and 10-Q could also have material adverse effects on forward-looking statements. Copies of MPLX's Forms 10-K and 10-Q are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.
View original content:http://www.prnewswire.com/news-releases/mplx-announces-binding-open-season-proposing-expansion-of-slc-core-pipeline-system-301134615.html
SOURCE MPLX LP
FINDLAY, Ohio, Aug. 24, 2020 /PRNewswire/ -- Marathon Pipe Line LLC, a subsidiary of MPLX LP (NYSE: MPLX), has earned the American Petroleum Institute's (API's) 2019 Distinguished Pipeline Safety Award. The recognition is based on selection by pipeline industry peers, and recognizes the company for fostering a culture of safety, sharing and implementing best practices, and participating in API policy and technical work.
Shawn Lyon, president of Marathon Pipe Line, said the award is a testament to the dedication of the company's employees. "They're out there giving their all, focused on our mission to safely and reliably operate pipelines 24 hours a day, 365 days a year – and they're making a difference," he said. "No matter what, even during this pandemic, they always answer the higher calling to be guardians of public safety. The safety of those in the communities where we operate – that's at the heart of everything Marathon Pipe Line does."
Lyon also expressed his gratitude to the API member pipeline operators. "We're truly honored by this recognition from our peers," he said. "There are so many excellent operators who helped select Marathon Pipe Line, and I'm humbled by their confidence in us."
As a subsidiary of MPLX, Marathon Pipe Line transports and stores crude oil, refined products and natural gas throughout the U.S. using its network of thousands of miles of pipelines, storage tanks, storage caverns and marine facilities.
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 petroleum 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.
Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Evan Barbosa, Manager, Investor Relations
Jim Mallamaci, Manager, Investor Relations
Media Contacts:
Hamish Banks, Vice President, Corporate Communications (419) 421-2521
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
View original content:http://www.prnewswire.com/news-releases/marathon-pipe-line-llc-earns-american-petroleum-institute-distinguished-pipeline-safety-award-301117073.html
SOURCE MPLX LP
FINDLAY, Ohio, Aug. 11, 2020 /PRNewswire/ -- MPLX LP (NYSE: MPLX) announced today that it has priced $3,000,000,000 in aggregate principal amount of unsecured senior notes in an underwritten public offering consisting of $1,500,000,000 aggregate principal amount of 1.75% senior notes due in 2026 (the "2026 senior notes") and $1,500,000,000 aggregate principal amount of 2.65% senior notes due in 2030 (the "2030 senior notes").
The 2026 senior notes and 2030 senior notes were offered at a price to the public of 99.785% of par and 99.913% of par, respectively.
MPLX intends to use the net proceeds from this offering to repay or redeem existing indebtedness, including, without limitation, (i) the $1 billion term loan borrowing maturing in 2021, (ii) the $1 billion aggregate principal amount of its floating rate senior notes due 2021, (iii) the $300 million aggregate principal amount of its 6.250% senior notes due 2022 (including the approximately $34 million in aggregate principal amount of senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.) and (iv) the $450 million aggregate principal amount of its 6.375% senior notes due 2024 (including the approximately $69 million in aggregate principal amount of senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.). Any remaining net proceeds will be used for general partnership purposes.
The closing of the senior notes offering is expected to occur on Aug. 18, 2020, subject to satisfaction of customary closing conditions.
RBC Capital Markets, LLC; J.P. Morgan Securities LLC; and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering.
This offering is being made only by means of a prospectus and related prospectus supplement, which may be obtained for free by visiting the Securities and Exchange Commission's website at http://www.sec.gov. Alternatively, copies may be obtained by contacting the following, who are acting as representatives of the underwriters:
RBC Capital Markets, LLC
200 Vesey Street, 8th Floor
New York, NY 10281
Toll-Free: (866) 375-6829
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Collect: (212) 834-4533
MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th Floor
New York, NY 10020
Attn: Capital Markets Group
Toll-Free: (877) 649-6848
This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 petroleum 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.
Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Evan Barbosa, Manager, Investor Relations
Jim Mallamaci, Manager, Investor Relations
Media Contacts:
Hamish Banks, Vice President, Corporate Communications (419) 421-2521
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
View original content:http://www.prnewswire.com/news-releases/mplx-lp-prices-3-billion-senior-notes-offering-301110429.html
SOURCE MPLX LP
FINDLAY, Ohio, Aug. 3, 2020 /PRNewswire/ --
MPLX LP (NYSE: MPLX) today reported second-quarter 2020 net income attributable to MPLX of $648 million, compared with net income of $482 million for the second quarter of 2019. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was $1.2 billion, compared with $1.2 billion in the second quarter of 2019.
The Logistics and Storage (L&S) segment reported segment income from operations of $681 million and adjusted EBITDA of $839 million for the quarter, up $6 million and $18 million, respectively, versus the second quarter of last year. The Gathering and Processing (G&P) segment reported segment income from operations of $197 million and adjusted EBITDA of $388 million for the quarter, down $13 million and $40 million, respectively, versus the second quarter of last year.
During the quarter, MPLX generated $1.1 billion in net cash provided by operating activities and $1.0 billion of distributable cash flow. Distribution coverage was 1.39x for the second quarter of 2020. MPLX also announced a second-quarter 2020 distribution of $0.6875 per common unit, consistent with the prior quarter.
"The challenges created by the COVID pandemic continued during our second quarter," said Michael J. Hennigan, president and chief executive officer. "Significantly lower levels of demand for crude and refined products decreased the need for our logistics and storage services, while production curtailments in response to lower prices pressured the gathering and processing systems we operate. However, the progress we made on the proactive steps we announced last quarter helped offset some of these challenges. We continue to believe we will be able to generate a stable level of EBITDA to support our goal of achieving positive free cash flow, after capital investments and distributions, for 2021."
Financial Highlights
Three Months Ended | Six Months Ended | ||||||||||||||||||
(In millions, except per unit and ratio data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net (loss) income attributable to MPLX(a) | $ | 648 | $ | 482 | $ | (2,076) | $ | 985 | |||||||||||
Adjusted net income attributable to MPLX(b) | N/A | 651 | N/A | 1,334 | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(c) | 1,227 | 1,249 | 2,521 | 2,512 | |||||||||||||||
Net cash provided by operating activities | 1,105 | 1,101 | 2,114 | 1,954 | |||||||||||||||
Distributable cash flow attributable to MPLX LP(c) | 1,027 | 1,007 | 2,105 | 2,028 | |||||||||||||||
Distribution per common unit(d) | $ | 0.6875 | $ | 0.6675 | $ | 1.3750 | $ | 1.3250 | |||||||||||
Distribution coverage ratio(e) | 1.39x | 1.41x | 1.42x | 1.62x | |||||||||||||||
Consolidated debt to adjusted EBITDA(f) | 4.1x | 3.9x | N/A | N/A | |||||||||||||||
(a) | The six months ended June 30, 2020 includes impairments related to equity method investments of approximately $1.3 billion, goodwill impairment of approximately $1.8 billion and long-lived asset impairments of approximately $0.3 billion, all within our G&P operating segment. |
(b) | Includes net income attributable to predecessor for the three and six months ended June 30, 2019. The predecessor period represents the period prior to MPLX's acquisition of ANDX on July 30, 2019. |
(c) | Non-GAAP measures calculated before distributions to preferred unitholders. See reconciliation below. Includes adjusted EBITDA and DCF adjustments attributable to predecessor. For the three and six months ended June 30, 2019, adjusted EBITDA attributable to MPLX LP excluding predecessor results was $920 million and $1,850 million, respectively. |
(d) | Distributions declared by the board of directors of MPLX's general partner. |
(e) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distributions declared. For the six months ended June 30, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX for the first quarter of 2019, resulting in a distribution coverage ratio of 1.62x. |
(f) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is pro forma for acquisitions. See reconciliation below. 2019 is shown as historically presented and has not been adjusted for predecessor impacts. |
Segment Results (including predecessor)
(In millions) | Three Months Ended | Six Months Ended | |||||||||||||
Segment income (loss) from operations | 2020 | 2019 | 2020 | 2019 | |||||||||||
Logistics and Storage | $ | 681 | $ | 675 | $ | 1,404 | $ | 1,362 | |||||||
Gathering and Processing | 197 | 210 | (3,012) | 435 | |||||||||||
Segment adjusted EBITDA attributable to MPLX | |||||||||||||||
Logistics and Storage | 839 | 821 | 1,711 | 1,649 | |||||||||||
Gathering and Processing | $ | 388 | $ | 428 | $ | 810 | $ | 863 | |||||||
Logistics & Storage
L&S segment income from operations and segment adjusted EBITDA for the second quarter of 2020 increased by $6 million and $18 million, respectively, compared to the same period in 2019. Results for the quarter were impacted by lower demand due to the COVID-19 pandemic, which was more than offset by lower operating expenses, minimum volume commitments, and additional marine equipment placed in service.
Total pipeline throughputs were 4.3 million barrels per day in the second quarter, a decrease of 15% versus the same quarter of 2019. The average tariff rate was $0.94 per barrel for the quarter. Terminal throughput was 2.4 million barrels per day for the quarter, a decrease of 26% versus the same quarter of 2019.
Gathering & Processing
G&P segment income from operations and segment adjusted EBITDA for the second quarter of 2020 decreased by $13 million and $40 million, respectively, compared to the same period in 2019. Results for the quarter were primarily impacted by lower commodity prices and production curtailments and shut-ins. In the second quarter of 2020:
In the Marcellus and Utica:
Strategic Update
MPLX has made significant progress to reduce forecasted annual operating expenses by approximately $200 million, net maintenance capital spending by $100 million to approximately $150 million, and growth capital spending by over $600 million to approximately $900 million.
In the L&S segment, MPLX continues to advance its strategy of creating integrated crude oil and natural gas logistics systems from the Permian to the U.S. Gulf Coast. The Wink-to-Webster crude oil pipeline, in which MPLX has an equity interest, remains on schedule to be completed in the first half of 2021. The 36-inch diameter pipeline, of which 100% of the contractible capacity is committed with minimum volume commitments, will originate in the Permian Basin and have destination points in the Houston market, including the Marathon Petroleum Corporation (NYSE: MPC) Galveston Bay refinery.
Also in the Permian, the Whistler Pipeline is being designed to transport approximately 2 bcf/d of natural gas from Waha, Texas, to the Agua Dulce market in south Texas, ultimately reaching MPC's Galveston Bay refinery. MPLX has an equity interest in Whistler, which is expected to be placed in service in the second half of 2021. Whistler is more than 90% committed with minimum volume commitments. During the quarter, MPLX, along with its partners, secured project financing for the Whistler Pipeline. Lower capital spend related to this financing was already factored into the company's reduced 2020 growth capital target.
This quarter, MPLX, WhiteWater Midstream, and West Texas Gas, Inc. (WTG) formed a joint venture (JV) to provide natural gas liquids (NGL) takeaway capacity from MPLX and WTG gas processing plants to Sweeny, Texas. The JV utilizes existing infrastructure with limited new construction and is a capital-efficient solution to support producer customers.
Additionally, MPLX entered into a redemption agreement with MPC, in which MPLX agreed to transfer the Western wholesale distribution business, which it acquired as a result of its acquisition of Andeavor Logistics, to MPC in exchange for the redemption of $340 million of MPLX common units held by MPC. The transaction, which was signed and closed on July 31, leaves MPLX with the fuels distribution business acquired from MPC in 2018.
Yesterday, MPC announced an agreement with 7-Eleven to sell Speedway for $21 billion in cash. MPC expects to use proceeds from the sale to strengthen its balance sheet and return capital to shareholders. The arrangement includes a 15-year fuel supply agreement for approximately 7.7 billion gallons of fuel per year and the opportunity to supply additional 7-Eleven locations.
MPC also announced the indefinite idling of the Gallup and Martinez refineries, and announced it is evaluating the strategic repositioning of Martinez to a renewable diesel facility.
Financial Position and Liquidity
As of June 30, 2020, MPLX had $67 million in cash, $2.7 billion available through its bank revolving credit facility expiring in July 2024 and $1.5 billion available through its intercompany loan agreement with MPC. The company's leverage ratio was 4.1x at June 30, 2020. MPLX remains committed to maintaining an investment-grade credit profile.
Conference Call
At 11 a.m. ET today, MPLX will hold a conference call and webcast to discuss the reported results and provide an update on operations. Interested parties may listen by visiting MPLX's website at http://www.mplx.com. A replay of the webcast will be available on MPLX's website for two weeks. Financial information, including this 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 Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Evan Barbosa, Manager, Investor Relations
Jim Mallamaci, Manager, Investor Relations
Media Contacts:
Hamish Banks, Vice President, Communications (419) 421-2521
Jamal Kheiry, Manager, Communications (419) 421-3312
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, MPLX's expectations, estimates and projections concerning the business and operations, financial priorities and strategic plans of MPLX. 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," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance," "imply," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "proposition," "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 but are not limited to: the effects of the recent outbreak of COVID-19 and the adverse impact thereof on our business, financial condition, results of operations and cash flows, including our growth, operating costs, labor availability, logistical capabilities, customer demand for our services and industry demand generally, cash position, taxes, the price of our securities and trading markets with respect thereto, our ability to access capital markets, and the global economy and financial markets generally; the ability to reduce capital and operating expenses; the risk of further impairments; the risk that anticipated opportunities and any other synergies from or anticipated benefits of the Andeavor Logistics LP (ANDX) acquisition may not be fully realized or may take longer to realize than expected, including whether the transaction will be accretive within the expected timeframe or at all; disruption from the 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 positive free cash flow in 2021, and with respect to distribution coverage, future distribution levels, proposed projects and completed transactions; the success of MPC's portfolio optimization, including the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; 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 as a result of the COVID-19 pandemic, other infectious disease outbreaks or otherwise; non-payment or non-performance by our producer and other customers; 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 MPC's obligations under MPLX'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 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, 2019, and in Forms 10-Q and other filings, 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 effects of the recent outbreak of COVID-19 and the adverse impact thereof on the business, financial condition, results of operations and cash flows, including, but not limited to, growth, operating costs, labor availability, logistical capabilities, customer demand for products and industry demand generally, margins, inventory value, cash position, taxes, the price of securities and trading markets with respect thereto, the ability to access capital markets, and the global economy and financial markets generally; the effects of the recent outbreak of COVID-19, and the current economic environment generally, on working capital, cash flows and liquidity, which can be significantly affected by decreases in commodity prices; the ability to reduce capital and operating expenses; with respect to the planned Speedway sale, the ability to successfully complete the sale within the expected timeframe or at all, based on numerous factors, including our ability to satisfy customary conditions, including obtaining regulatory approvals on the proposed terms and schedule, and any conditions imposed in connection with the consummation of the transaction, our ability to utilize the proceeds as anticipated, and our ability to capture value from the associated ongoing supply relationship and realize the other expected benefits; 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 related to the acquisition of ANDX by MPLX, including the risk that anticipated opportunities and any other synergies from or anticipated benefits of the transaction may not be fully realized or may take longer to realize than expected, including whether the transaction will be accretive within the expected timeframe or at all, or disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the risk of further impairments; the ability to complete any divestitures on commercially reasonable terms and/or within the expected timeframe, and the effects of any such divestitures on the business, financial condition, results of operations and cash flows; future levels of revenues, refining and marketing margins, operating costs, retail gasoline and distillate margins, merchandise margins, income from operations, net income and 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 and 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 such repurchases; the adequacy of capital resources and liquidity, including availability, timing and amounts of free cash flow necessary to execute business plans and to effect any share repurchases or to maintain or increase the dividend; 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 as a result of the COVID-19 pandemic, other infectious disease outbreaks or otherwise; 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; 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, 2019, and in Forms 10-Q and other filings, filed with the SEC.
We have based our forward-looking statements on our current expectations, estimates and projections about our business and 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 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. Copies of MPLX's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office. Copies of MPC's Form 10-K, Forms 10-Q and other SEC filings are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.
Condensed Results of Operations (unaudited) | Three Months Ended | Six Months Ended | |||||||||||||
(In millions, except per unit data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Revenues and other income: | |||||||||||||||
Operating revenue | $ | 803 | $ | 927 | $ | 1,719 | $ | 1,890 | |||||||
Operating revenue - related parties | 1,124 | 1,169 | 2,319 | 2,338 | |||||||||||
Income (loss) from equity method investments | 89 | 83 | (1,095) | 160 | |||||||||||
Other income | 65 | 31 | 130 | 57 | |||||||||||
Total revenues and other income | 2,081 | 2,210 | 3,073 | 4,445 | |||||||||||
Costs and expenses: | |||||||||||||||
Operating expenses | 435 | 548 | 973 | 1,118 | |||||||||||
Operating expenses - related parties | 321 | 349 | 643 | 670 | |||||||||||
Depreciation and amortization | 321 | 313 | 646 | 614 | |||||||||||
Impairment expense | — | — | 2,165 | — | |||||||||||
General and administrative expenses | 96 | 90 | 193 | 191 | |||||||||||
Other taxes | 30 | 25 | 61 | 55 | |||||||||||
Total costs and expenses | 1,203 | 1,325 | 4,681 | 2,648 | |||||||||||
Income (loss) from operations | 878 | 885 | (1,608) | 1,797 | |||||||||||
Interest and other financial costs | 223 | 229 | 453 | 453 | |||||||||||
Income (loss) before income taxes | 655 | 656 | (2,061) | 1,344 | |||||||||||
(Benefit) provision for income taxes | — | (1) | — | (2) | |||||||||||
Net income (loss) | 655 | 657 | (2,061) | 1,346 | |||||||||||
Less: Net income attributable to noncontrolling interests | 7 | 6 | 15 | 12 | |||||||||||
Less: Net income attributable to Predecessor | — | 169 | — | 349 | |||||||||||
Net income (loss) attributable to MPLX LP | 648 | 482 | (2,076) | 985 | |||||||||||
Less: Series A preferred unit distributions | 21 | 21 | 41 | 41 | |||||||||||
Less: Series B preferred unit distributions | 10 | — | 21 | — | |||||||||||
Limited partners' interest in net income (loss) attributable to MPLX LP | $ | 617 | $ | 461 | $ | (2,138) | $ | 944 | |||||||
Per Unit Data | |||||||||||||||
Net income (loss) attributable to MPLX LP per | |||||||||||||||
Common - basic | $ | 0.58 | $ | 0.56 | $ | (2.02) | $ | 1.16 | |||||||
Common - diluted | $ | 0.58 | $ | 0.55 | $ | (2.02) | $ | 1.16 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units – basic | 1,059 | 794 | 1,059 | 794 | |||||||||||
Common units – diluted | 1,059 | 795 | 1,059 | 795 | |||||||||||
Select Financial Statistics (unaudited) | Three Months Ended | Six Months Ended | |||||||||||||
(In millions, except ratio data) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Common unit distributions declared by MPLX | |||||||||||||||
Common units (LP) - public(a) | $ | 270 | $ | 261 | $ | 540 | $ | 452 | |||||||
Common units - MPC(a) | 445 | 431 | 903 | 763 | |||||||||||
Total GP and LP distribution declared | 715 | 692 | 1,443 | 1,215 | |||||||||||
Preferred unit distributions(b) | |||||||||||||||
Series A preferred unit distributions(c) | 21 | 21 | 41 | 41 | |||||||||||
Series B preferred unit distributions(d) | 10 | 21 | 21 | 21 | |||||||||||
Total preferred unit distributions | 31 | 42 | 62 | 62 | |||||||||||
Other Financial Data | |||||||||||||||
Adjusted EBITDA attributable to MPLX LP(e)(f) | 1,227 | 1,249 | 2,521 | 2,512 | |||||||||||
DCF attributable to GP and LP unitholders(e)(f) | $ | 996 | $ | 975 | $ | 2,043 | $ | 1,966 | |||||||
Distribution coverage ratio(g) | 1.39x | 1.41x | 1.42x | 1.62x | |||||||||||
Cash Flow Data | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 1,105 | $ | 1,101 | $ | 2,114 | $ | 1,954 | |||||||
Investing activities | (415) | (739) | (777) | (1,439) | |||||||||||
Financing activities | $ | (680) | $ | (452) | $ | (1,285) | $ | (568) | |||||||
(a) | The distribution on common units for the three and six months ended June 30, 2019 includes the impact of the issuance of approximately 102 million units issued to public unitholders and approximately 161 million units issued to MPC in connection with MPLX's acquisition of ANDX on July 30, 2019. |
(b) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the Series B preferred assuming a distribution is declared by the Board of Directors (distributions on Series B preferred units are declared and payable semi-annually on February 15th and August 15th or the first business day thereafter). Cash distributions declared/to be paid to holders of the Series A and Series B preferred units are not available to common unitholders. |
(c) | Series A 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. |
(d) | Series B preferred unitholders are entitled to receive a fixed distribution of $68.75 per unit, per annum, payable semi-annually in arrears on February 15 and August 15 or the first business day thereafter. |
(e) | Non-GAAP measure. See reconciliation below. |
(f) | Includes predecessor EBITDA and DCF that is attributable to the period prior to the acquisition date of July 30, 2019. For the three and six months ended June 30, 2019, adjusted EBITDA attributable to MPLX LP excluding predecessor results was $920 million and $1,850 million respectively. |
(g) | DCF attributable to GP and LP unitholders (including DCF attributable to predecessor) divided by total GP and LP distribution declared. For the six months ended June 30, 2019, DCF attributable to predecessor has been included with no corresponding distribution being declared by MPLX for the first quarter of 2019, resulting in a distribution coverage ratio of 1.62x. |
Select Balance Sheet Data (unaudited) | |||||||
(In millions, except ratio data) | June 30, | December 31, | |||||
Cash and cash equivalents | $ | 67 | $ | 15 | |||
Total assets | 37,022 | 40,430 | |||||
Total long-term debt(a) | 20,559 | 20,307 | |||||
Redeemable preferred units | 968 | 968 | |||||
Total equity | $ | 13,262 | $ | 16,613 | |||
Consolidated total debt to adjusted EBITDA(b) | 4.1x | 4.1x | |||||
Partnership units outstanding: | |||||||
MPC-held common units | 666 | 666 | |||||
Public common units | 393 | 392 | |||||
(a) | Outstanding intercompany borrowings were zero as of June 30, 2020 and $594 |
(b) | Calculated using face value total debt and LTM pro forma adjusted EBITDA, which is and December 31, 2019, respectively. |
Operating Statistics | Three Months Ended | Six Months Ended | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Logistics and Storage | |||||||||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||||||||
Crude oil pipelines | 2,733 | 3,242 | (16) | % | 2,971 | 3,174 | (6) | % | |||||||||||||
Product pipelines | 1,586 | 1,867 | (15) | % | 1,746 | 1,882 | (7) | % | |||||||||||||
Total pipelines | 4,319 | 5,109 | (15) | % | 4,717 | 5,056 | (7) | % | |||||||||||||
Average tariff rates ($ per barrel) | |||||||||||||||||||||
Crude oil pipelines | $ | 0.99 | $ | 0.88 | 13 | % | $ | 0.96 | $ | 0.92 | 4 | % | |||||||||
Product pipelines | 0.84 | 0.75 | 12 | % | 0.81 | 0.72 | 13 | % | |||||||||||||
Total pipelines | $ | 0.94 | $ | 0.83 | 13 | % | 0.90 | 0.84 | 7 | % | |||||||||||
Terminal throughput (mbpd) | 2,420 | 3,287 | (26) | % | 2,693 | 3,253 | (17) | % | |||||||||||||
Barges at period-end | 305 | 261 | 17 | % | 305 | 261 | 17 | % | |||||||||||||
Towboats at period-end | 23 | 23 | — | % | 23 | 23 | — | % | |||||||||||||
(a) | Statistics for the three and six months ended June 30, 2019 are inclusive of predecessor operations. |
Gathering and | Three Months Ended | Six Months Ended | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,385 | 1,266 | 9 | % | 1,402 | 1,274 | 10 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 1,385 | 1,266 | 9 | % | 1,402 | 1,274 | 10 | % | |||||||||||||
Southwest Operations | 1,365 | 1,617 | (16) | % | 1,461 | 1,600 | (9) | % | |||||||||||||
Bakken Operations | 126 | 147 | (14) | % | 141 | 150 | (6) | % | |||||||||||||
Rockies Operations | 495 | 649 | (24) | % | 544 | 644 | (16) | % | |||||||||||||
Total gathering throughput | 3,371 | 3,679 | (8) | % | 3,548 | 3,668 | (3) | % | |||||||||||||
Natural gas processed (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 4,112 | 4,216 | (2) | % | 4,155 | 4,185 | (1) | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 4,112 | 4,216 | (2) | % | 4,155 | 4,185 | (1) | % | |||||||||||||
Southwest Operations | 1,412 | 1,558 | (9) | % | 1,530 | 1,578 | (3) | % | |||||||||||||
Southern Appalachian Operations | 223 | 243 | (8) | % | 233 | 239 | (3) | % | |||||||||||||
Bakken Operations | 126 | 147 | (14) | % | 141 | 150 | (6) | % | |||||||||||||
Rockies Operations | 516 | 585 | (12) | % | 528 | 578 | (9) | % | |||||||||||||
Total natural gas processed | 6,389 | 6,749 | (5) | % | 6,587 | 6,730 | (2) | % | |||||||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||||||||
Marcellus Operations | 464 | 440 | 5 | % | 460 | 430 | 7 | % | |||||||||||||
Utica Operations(b) | — | — | — | % | — | — | — | % | |||||||||||||
Subtotal | 464 | 440 | 5 | % | 460 | 430 | 7 | % | |||||||||||||
Southwest Operations | 13 | 3 | 333 | % | 14 | 10 | 40 | % | |||||||||||||
Southern Appalachian Operations | 12 | 12 | — | % | 12 | 12 | — | % | |||||||||||||
Bakken Operations | 19 | 21 | (10) | % | 25 | 18 | 39 | % | |||||||||||||
Rockies Operations | 4 | 3 | 33 | % | 4 | 4 | — | % | |||||||||||||
Total C2 + NGLs fractionated | 512 | 479 | 7 | % | 515 | 474 | 9 | % | |||||||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements. Statistics for the three and six months ended June 30, 2019 are inclusive of predecessor operations. |
(b) | The Utica region relates to operations for partnership-operated equity method investments and thus does not have any operating statistics from a consolidated perspective. See table below for details on Utica. |
Gathering and | Three Months Ended | Six Months Ended | |||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
Gathering throughput (mmcf/d) | |||||||||||||||||||||
Marcellus Operations | 1,385 | 1,266 | 9 | % | 1,402 | 1,274 | 10 | % | |||||||||||||
Utica Operations | 1,903 | 2,066 | (8) | % | 1,852 | 2,087 | (11) | % | |||||||||||||
Subtotal | 3,288 | 3,332 |