FINDLAY, Ohio, Oct. 27, 2016 - MPLX LP (NYSE: MPLX) today reported
third-quarter 2016 net income attributable to MPLX of $141
million.
|
|
Three Months Ended
Sept. 30 |
|
|
Nine Months Ended
Sept. 30 |
(In millions, except per unit and ratio
data) |
|
2016 |
|
|
2015(a) |
|
|
2016 |
|
|
2015(a) |
Net
income attributable to MPLX(b) |
$ |
141 |
|
|
$ |
41 |
|
|
$ |
100 |
|
|
$ |
138 |
|
Adjusted EBITDA attributable to MPLX(c) |
|
375 |
|
|
|
66 |
|
|
|
1,028 |
|
|
|
200 |
|
Net
cash provided by operating activities |
|
339 |
|
|
|
85 |
|
|
|
932 |
|
|
|
258 |
|
Distributable cash flow ("DCF")(c) |
|
301 |
|
|
|
54 |
|
|
|
822 |
|
|
|
172 |
|
Distribution per common unit(d) |
|
0.5150 |
|
|
|
0.4700 |
|
|
|
1.5300 |
|
|
|
1.3200 |
|
Distribution coverage ratio(e) |
|
1.22x |
|
|
1.15x |
|
|
1.22x |
|
|
1.37x |
Growth
capital expenditures(f) |
|
306 |
|
|
|
48 |
|
|
|
875 |
|
|
|
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
MarkWest operations excluded from results and measures provided
prior to the Dec. 4, 2015,
merger.
(b)
The nine months ended Sept. 30, 2016, include pretax, non-cash
impairments of $89 million related to an equity method investment
and $130 million related to the goodwill established in connection
with the MarkWest acquisition.
(c)
Non-GAAP measure calculated before the distribution to preferred
units and excluding impairment charges. See reconciliation
below.
(d)
Distributions declared by the board of directors of our general
partner.
(e)
Non-GAAP measure. See calculation below.
(f)
Includes capital expenditures for inland marine business
("Predecessor"), acquired on March 31, 2016. Excludes
non-affiliated joint-venture (JV) members' share of capital
expenditures. See description below.
In a separate release this morning, Marathon
Petroleum Corporation (NYSE: MPC) announced several strategic
actions, including an aggressive dropdown strategy. In 2017, MPC
plans to offer the partnership assets contributing approximately
$350 million of annual earnings before interest, taxes,
depreciation and amortization (EBITDA), with the first drop of
approximately $235 million of annual EBITDA by the end of the first
quarter. The partnership's plans for funding these dropdowns would
likely include transactions with MPC, including the potential for a
substantial amount of equity to MPC.
MPC intends to execute on additional
value-enhancing dropdowns totaling an estimated $1 billion of
annual EBITDA to the partnership within the next three years. The
dropdown strategy is subject to market and other conditions, as
well as requisite approvals.
In addition to the expected dropdowns, MPC
announced the evaluation of opportunities to optimize the
partnership's cost of capital through a strategic review of its
general partner interest.
"We believe MPC's strategic plan introduced today,
including the visibility to its planned dropdown schedule, combined
with the strong underlying organic growth we continue to enjoy in
the gathering and processing business will support distribution
growth of 12 to 15 percent for 2017 and double-digit growth for
2018," said Gary R. Heminger, MPLX chairman and chief executive
officer.
A copy of the press release can be found at
http://ir.marathonpetroleum.com.
"MPLX delivered strong results in the third
quarter and a distribution coverage ratio of over 1.2 times,"
Heminger said. "MPLX's gathering and processing segment is
experiencing growing demand from producer customers amid an
improving commodity price environment, while our logistics and
storage segment continues to generate steady results supporting the
requirements of Marathon Petroleum.
"We are pleased with our team's success in
completing the Cornerstone Pipeline on schedule and under budget
this month," Heminger said. MPLX now is in the process of expanding
the capacity of existing pipelines, as well as constructing new
pipelines as part of a larger build-out of Utica Shale
infrastructure, which is targeted for completion in mid-2017. With
this mix of new and existing pipelines, MPLX is seizing a unique
opportunity to support producer customer growth by connecting
natural gas liquids (NGLs) to downstream markets in the Midwest and
Canada through its extensive distribution network.
MPLX's gathering and processing segment continues
to drive exceptional organic growth opportunities in support of a
diverse set of producer customers in some of the nation's most
prolific shale plays. "In 2016, processed volumes from our
Northeast and Southwest operating units are expected to achieve
approximately 15 percent growth over the prior year," Heminger
said. For 2017, the partnership forecasts Marcellus and Utica
processed volumes to increase by 10 to 15 percent. MPLX is
currently constructing five new processing and fractionation
facilities in the region to meet projected volume growth. These
plants are expected to commence operations in 2017.
"We continue to work with our producer customers
as they evaluate their development plans for 2017," Heminger said.
"Increased drilling activity among our producer customers, combined
with previously announced logistics and storage projects, supports
our positive outlook for the remainder of this year and 2017."
Operational
Highlights
- Commenced operations of the Cornerstone Pipeline,
on schedule and under budget, to transport liquids production from
the Marcellus and Utica shales of eastern Ohio to a tank farm in
East Sparta, Ohio, and on to MPC's refinery in Canton, Ohio,
providing improved industry connectivity to the region.
- Accelerated construction of the Hopedale
connection to Cornerstone Pipeline to transport natural gasoline
from the Marcellus and Utica shales to Midwest refiners, including
MPC, with completion expected by year end.
- Increased Northeast natural gas processed volumes
by 14 percent over the third quarter of 2015 and 5 percent over the
second quarter of 2016.
- Increased Southwest natural gas processed volumes
by 14 percent over the second quarter of 2016, driven by the
Hidalgo complex in the Delaware Basin, which commenced operations
in May.
Financial Position and
Liquidity
As of Sept. 30, MPLX had $208 million in cash, $2
billion available through its bank revolving credit facility and
$500 million available through its credit facility with MPC. During
the third quarter, MPLX opportunistically issued 5.7 million new
common units through its at-the-market program and received net
proceeds of approximately $184 million. The partnership's $2.7
billion of available liquidity should provide it with sufficient
flexibility to meet its day-to-day operational needs and continue
investing in organic growth opportunities. The partnership's
debt-to-pro forma adjusted EBITDA ratio was 3.5 times at Sept. 30.
MPLX remains committed to maintaining an investment-grade credit
profile.
Forecast
MPLX today reiterated its 2016 financial forecast
and narrowed the range for its organic growth capital expenditures.
Based on current estimates for operational volumes, commodity
prices, and derivative instruments outstanding, our 2016 forecast
is:
Net
income(a) |
$140 million to $240 million |
Adjusted EBITDA(b) |
$1.3 billion to $1.4 billion |
Net
cash provided by operating activities |
$1.1 billion to $1.2 billion |
Distributable cash flow (DCF)(b) |
$1.0 billion to $1.1 billion |
Organic growth capital expenditures(c) |
$1.1 billion to $1.2 billion |
Maintenance capital expenditures |
~$60 million |
Distribution growth rate |
12 percent to 15 percent |
(a)
Guidance includes impairment charges of $89 million related to an
equity method investment and $130 million related to goodwill
established in connection with the MarkWest merger.
(b)
Non-GAAP measure calculated before the distribution to preferred
units and excluding the impairment charges related to an equity
method investment and goodwill. See reconciliation below.
(c)
Excludes non-affiliated JV members' share of capital
expenditures
For 2017, MPLX expects a 12 to 15 percent
distribution growth rate, and forecasts a double-digit distribution
growth rate for 2018.
MPLX's preliminary 2017 forecast for organic
growth capital expenditures is $1.2 billion to $1.6 billion and
maintenance capital is approximately $100 million. Projects in this
forecast include the Utica infrastructure build-out, a butane
cavern in Robinson, Illinois, and a tank farm expansion in Texas
City, Texas. Also, the partnership expects to complete 400 million
cubic feet per day of additional natural gas processing capacity,
60,000 barrels per day of additional ethane-fractionation capacity
and 60,000 barrels per day of additional propane-plus fractionation
capacity to support producers' ongoing development of rich-gas
acreage in the Marcellus and Utica shales.
Segment Results
|
|
Three Months Ended
Sept. 30 |
|
|
Nine Months Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
L&S segment operating income attributable to MPLX LP(a) |
$ |
124 |
|
|
$ |
81 |
|
|
$ |
335 |
|
|
$ |
251 |
|
G&P segment operating income attributable to MPLX LP(a) |
|
293 |
|
|
|
- |
|
|
|
821 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
See reconciliation below for details.
Logistics and Storage (L&S) segment operating
income increased for the third quarter of 2016 compared with the
same period in 2015. The increase was primarily due to the
acquisition of the inland marine business on March 31, 2016, and
higher average tariffs received on the volumes of crude oil and
products shipped.
Gathering and Processing (G&P) segment
operating income increased for the third quarter of 2016 compared
with the same period in 2015. This increase is due to the
acquisition of MarkWest. Further discussion is included in the
G&P pro forma financial information below.
See reconciliation below for detail on items not
allocable to or controllable by any individual segment, which are
therefore excluded when evaluating segment performance.
G&P Pro Forma Financial
Information
For the G&P segment, the table below presents
financial information, as evaluated by management, for the reported
segment for the three months and nine months ended Sept. 30, 2016,
and 2015. MPLX believes this Sept. 30, 2015, pro forma quarterly
data provides a useful comparison for the G&P segment in light
of the December 2015 acquisition. The pro forma financial
information below may not necessarily be indicative of future
results. In addition, all partnership-operated, non-wholly owned
subsidiaries are treated as if they are consolidated.
|
|
|
Three Months Ended
Sept. 30 |
|
|
Nine Months Ended
Sept. 30 |
(In millions) |
|
|
2016(a) |
|
|
2015(b) |
|
|
2016(a) |
|
|
2015(b) |
Segment operating income attributable to G&P |
|
$ |
293 |
|
|
$ |
266 |
|
|
$ |
821 |
|
|
$ |
754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Actual results.
(b)
G&P segment results incorporate pro-forma adjustments necessary
to reflect a Jan. 1, 2014, acquisition date (see the
reconciliations of pro forma data below).
Segment operating income attributable to G&P
increased for the third quarter of 2016 compared with the pro forma
results for the same period in 2015 and for the nine months ended
Sept. 30, 2016, compared with the same period of 2015. These
increases were primarily due to higher volumes as well as increased
natural gas and NGL prices.
|
|
Three Months Ended
Sept. 30 |
|
Nine Months Ended
Sept. 30 |
G&P Pro Forma Operating Statistics |
|
2016 |
|
2015 |
|
% Change |
|
2016 |
|
2015 |
|
% Change |
Gathering Throughput (mmcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
946 |
|
|
875 |
|
|
8 |
% |
|
922 |
|
|
849 |
|
|
9 |
% |
Utica
operations |
|
916 |
|
|
763 |
|
|
20 |
% |
|
936 |
|
|
617 |
|
|
52 |
% |
Southwest operations |
|
1,444 |
|
|
1,414 |
|
|
2 |
% |
|
1,455 |
|
|
1,419 |
|
|
3 |
% |
Total
gathering throughput |
|
3,306 |
|
|
3,052 |
|
|
8 |
% |
|
3,313 |
|
|
2,885 |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Processed (mmcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
3,273 |
|
|
2,865 |
|
|
14 |
% |
|
3,166 |
|
|
2,868 |
|
|
10 |
% |
Utica
operations |
|
1,050 |
|
|
929 |
|
|
13 |
% |
|
1,068 |
|
|
816 |
|
|
31 |
% |
Southwest operations |
|
1,339 |
|
|
1,089 |
|
|
23 |
% |
|
1,209 |
|
|
1,074 |
|
|
13 |
% |
Southern Appalachian operations |
|
244 |
|
|
275 |
|
|
(11 |
)% |
|
248 |
|
|
273 |
|
|
(9 |
)% |
Total
natural gas processed |
|
5,906 |
|
|
5,158 |
|
|
15 |
% |
|
5,691 |
|
|
5,031 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
C2 + NGLs Fractionated (mbpd) |
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
274 |
|
|
198 |
|
|
38 |
% |
|
254 |
|
|
191 |
|
|
33 |
% |
Utica
operations |
|
41 |
|
|
42 |
|
|
(2 |
)% |
|
43 |
|
|
37 |
|
|
16 |
% |
Southwest operations |
|
19 |
|
|
19 |
|
|
- |
% |
|
17 |
|
|
17 |
|
|
- |
% |
Southern Appalachian operations |
|
14 |
|
|
16 |
|
|
(13 |
)% |
|
16 |
|
|
15 |
|
|
7 |
% |
Total
C2 + NGLs fractionated |
|
348 |
|
|
275 |
|
|
27 |
% |
|
330 |
|
|
260 |
|
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
At 11 a.m. EDT today, MPLX will hold a webcast and
conference call to discuss the reported results and provide an
update on operations. Interested parties may listen to the
conference call by dialing 1-800-446-1671 (confirmation # 43396866)
or by visiting MPLX's website at http://www.mplx.com and clicking
on the "2016 Third-Quarter Financial Results" link in the "News
& Headlines" section. Replays of the conference call will be
available on MPLX's website through Wednesday, Nov. 9.
Investor-related materials will also be available online prior to
the webcast and conference call at http://ir.mplx.com.
###
About MPLX LP
MPLX is a diversified, growth-oriented master limited partnership
formed in 2012 by Marathon Petroleum Corporation to own, operate,
develop and acquire midstream energy infrastructure assets. We are
engaged in the gathering, processing and transportation of natural
gas; the gathering, transportation, fractionation, storage and
marketing of NGLs; and the transportation and storage of crude oil
and refined petroleum products. Headquartered in Findlay, Ohio,
MPLX's assets consist of a network of common carrier crude oil and
products pipeline assets located in the Midwest and Gulf Coast
regions of the United States, an inland marine business, a butane
storage cavern located in West Virginia with approximately one
million barrels of storage capacity, crude oil and product storage
facilities (tank farms) with approximately 4.5 million barrels of
available storage capacity, a barge dock facility with
approximately 78,000 barrels per day of crude oil and product
throughput capacity and gathering and processing assets that
include more than 5,500 miles of gas gathering and NGL pipelines,
54 gas processing plants, 13 NGL fractionation facilities and two
condensate stabilization facilities.
Investor Relations
Contacts:
Lisa D. Wilson (419) 421-2071
Teresa Homan (419) 421-2965
Doug Wendt (419) 421-2423
Media Contacts:
Katie Merx (419) 672-5159
Chuck Rice (419) 421-2521
Non-GAAP references
In addition to our financial information presented
in accordance with U.S. generally accepted accounting principles
(GAAP), management utilizes additional non-GAAP measures to
facilitate comparisons of past performance and future periods. This
press release and supporting schedules include the non-GAAP
measures adjusted EBITDA, 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 (benefit) for income taxes; (iii)
amortization of deferred financing costs; (iv) net interest and
other financial costs; (v) non-cash equity-based compensation; (vi)
impairment expense; (vii) income/loss from equity investments;
(viii) distributions from unconsolidated subsidiaries; (ix)
unrealized gain/loss on commodity hedges; and (x) acquisition
costs. In general, we define DCF as adjusted EBITDA plus (i) the
current period cash received/deferred revenue for committed volume
deficiencies less (ii) net interest and other financial costs;
(iii) gain on disposal of assets; (iv) equity investment
maintenance capital expenditures; (v) current portion of income
taxes; (vi) maintenance capital expenditures paid; (vii) volume
deficiency credits recognized; and (viii) other non-cash
items.
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 distribution
declared.
Forward-looking
statements
This press release contains forward-looking
statements within the meaning of federal securities laws regarding
MPLX LP ("MPLX") and Marathon Petroleum Corporation ("MPC"). These
forward-looking statements relate to, among other things,
expectations, estimates and projections concerning the business and
operations of MPLX and MPC, including proposed strategic
initiatives. 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
companies' 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: negative capital market
conditions, including a persistence or increase of the current
yield on common units, which is higher than historical yields,
adversely affecting MPLX's ability to meet its distribution growth
guidance; risk that the synergies from the acquisition of MarkWest
Energy Partners, L.P. ("MarkWest") by MPLX may not be fully
realized or may take longer to realize than expected; disruption
from the MPLX/MarkWest merger making it more difficult to maintain
relationships with customers, employees or suppliers; risks
relating to any unforeseen liabilities of MarkWest; the time, costs
and ability to obtain regulatory or other approvals and consents
and otherwise consummate the strategic initiatives discussed herein
and other proposed transactions; the satisfaction or waiver of
conditions in the agreements governing the strategic initiatives
discussed herein and other proposed transactions; our ability to
achieve the strategic and other objectives related to the strategic
initiatives discussed herein and other proposed transactions;
adverse changes in laws including with respect to tax and
regulatory matters; inability to agree with respect to the timing
of and value attributed to assets identified for dropdown; the
adequacy of MPLX's capital resources and liquidity, including, but
not limited to, availability of sufficient cash flow to pay
distributions, and the ability to successfully execute its business
plans and growth strategy; 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 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 earnings and distribution growth
objectives; the level of support from MPC, including dropdowns,
alternative financing arrangements, taking equity units, and other
methods of sponsor support, as a result of the capital allocation
needs of the enterprise as a whole and its ability to provide
support on commercially reasonable terms; compliance with federal
and state environmental, economic, health and safety, energy and
other policies and regulations and/or enforcement actions initiated
thereunder; changes to MPLX's capital budget; other risk factors
inherent to MPLX's industry; 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, 2015, and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016, filed with the 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 time, costs and ability to
obtain regulatory or other approvals and consents and otherwise
consummate the strategic initiatives discussed herein; the
satisfaction or waiver of conditions in the agreements governing
the strategic initiatives discussed herein; our ability to achieve
the strategic and other objectives related to the strategic
initiatives discussed herein; adverse changes in laws including
with respect to tax and regulatory matters; inability to agree with
the MPLX conflicts committee with respect to the timing of and
value attributed to assets identified for dropdown; risks described
above relating to MPLX and the MPLX/MarkWest merger; changes to the
expected construction costs and timing of projects;
continued/further volatility in and/or degradation of market and
industry conditions; the availability and pricing of crude oil and
other feedstocks; slower growth in domestic and Canadian crude
supply; the effects of the lifting of the U.S. crude oil export
ban; completion of pipeline capacity to areas outside the U.S.
Midwest; consumer demand for refined products; transportation
logistics; the reliability of processing units and other equipment;
MPC's ability to successfully implement growth opportunities;
modifications to MPLX earnings and distribution growth objectives;
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; changes to MPC's capital
budget; other risk factors inherent to MPC's industry; 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, 2015, filed with
the 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, in MPLX's Form 10-K or Form 10-Q or in MPC's
Form 10-K could also have material adverse effects on
forward-looking statements. Copies of MPLX's Form 10-K and Form
10-Q are available on the SEC website, MPLX's website at
http://ir.mplx.com or by contacting MPLX's Investor Relations
office. Copies of MPC's Form 10-K are available on the SEC website,
MPC's website at http://ir.marathonpetroleum.com or by contacting
MPC's Investor Relations office.
Results of Operations
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions, except per unit data) |
|
2016 |
|
|
2015(a) |
|
|
2016 |
|
|
2015(a) |
Revenues and other income: |
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
$ |
250 |
|
|
$ |
18 |
|
|
$ |
712 |
|
|
$ |
50 |
|
Service revenue - related parties |
|
153 |
|
|
|
152 |
|
|
|
448 |
|
|
|
446 |
|
Rental
income |
|
77 |
|
|
|
- |
|
|
|
218 |
|
|
|
- |
|
Rental
income - related parties |
|
29 |
|
|
|
25 |
|
|
|
84 |
|
|
|
75 |
|
Product sales |
|
157 |
|
|
|
- |
|
|
|
394 |
|
|
|
- |
|
Product sales - related parties |
|
2 |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
Gain
on sale of assets |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Income
(loss) from equity method investments |
|
6 |
|
|
|
- |
|
|
|
(72 |
) |
|
|
- |
|
Other
income |
|
2 |
|
|
|
1 |
|
|
|
5 |
|
|
|
4 |
|
Other
income - related parties |
|
26 |
|
|
|
18 |
|
|
|
78 |
|
|
|
53 |
|
Total
revenues and other income |
|
703 |
|
|
|
214 |
|
|
|
1,876 |
|
|
|
628 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
Cost
of revenues (excludes items below) |
|
90 |
|
|
|
59 |
|
|
|
263 |
|
|
|
147 |
|
Purchased product costs |
|
117 |
|
|
|
- |
|
|
|
310 |
|
|
|
- |
|
Rental
cost of sales |
|
11 |
|
|
|
- |
|
|
|
39 |
|
|
|
- |
|
Purchases - related parties |
|
84 |
|
|
|
43 |
|
|
|
238 |
|
|
|
123 |
|
Depreciation and amortization |
|
138 |
|
|
|
19 |
|
|
|
407 |
|
|
|
58 |
|
Impairment expense |
|
- |
|
|
|
- |
|
|
|
130 |
|
|
|
- |
|
General and administrative expenses |
|
46 |
|
|
|
25 |
|
|
|
147 |
|
|
|
68 |
|
Other
taxes |
|
10 |
|
|
|
- |
|
|
|
32 |
|
|
|
8 |
|
Total
costs and expenses |
|
496 |
|
|
|
146 |
|
|
|
1,566 |
|
|
|
404 |
|
Income from operations |
|
207 |
|
|
|
68 |
|
|
|
310 |
|
|
|
224 |
|
Related party interest and other financial costs |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Interest expense, net of amounts capitalized |
|
51 |
|
|
|
4 |
|
|
|
158 |
|
|
|
15 |
|
Other
financial costs |
|
13 |
|
|
|
1 |
|
|
|
37 |
|
|
|
2 |
|
Income before income taxes |
|
143 |
|
|
|
63 |
|
|
|
114 |
|
|
|
207 |
|
Benefit for income taxes |
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
Net income |
|
143 |
|
|
|
63 |
|
|
|
126 |
|
|
|
207 |
|
Less:
Net income attributable to noncontrolling interests |
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
1 |
|
Net income attributable to Predecessor |
|
- |
|
|
|
22 |
|
|
|
23 |
|
|
|
68 |
|
Net income attributable to MPLX LP |
|
141 |
|
|
|
41 |
|
|
|
100 |
|
|
|
138 |
|
Less:
Preferred unit distributions |
|
16 |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
Less:
General partner's interest in net income attributable to MPLX
LP |
|
51 |
|
|
|
8 |
|
|
|
136 |
|
|
|
19 |
|
Limited partners' interest in net income (loss)
attributable to MPLX LP |
$ |
74 |
|
|
$ |
33 |
|
|
$ |
(61 |
) |
|
$ |
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Unit Data |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to MPLX LP per
limited partner unit: |
|
|
|
|
|
|
|
|
|
|
|
Common
- basic |
$ |
0.22 |
|
|
$ |
0.41 |
|
|
$ |
(0.19 |
) |
|
$ |
1.42 |
|
Common
- diluted |
|
0.21 |
|
|
|
0.41 |
|
|
|
(0.19 |
) |
|
|
1.42 |
|
Subordinated - basic and diluted |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.36 |
|
Weighted average limited partner units
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Common
units - basic |
|
341 |
|
|
|
80 |
|
|
|
324 |
|
|
|
56 |
|
Common
units - diluted |
|
346 |
|
|
|
80 |
|
|
|
324 |
|
|
|
56 |
|
Subordinated units - basic and diluted |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Financial information has been retrospectively
adjusted to include the results of the inland marine business prior
to the March 31, 2016, acquisition from MPC, since MPLX and this
business are under common control. The net income of the
Predecessor is excluded from net income attributable to MPLX
LP.
Select Financial Statistics
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions, except ratio data) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Distribution declared: |
|
|
|
|
|
|
|
|
|
|
|
Common
units (LP) - public |
$ |
135 |
|
|
$ |
11 |
|
|
$ |
393 |
|
|
$ |
31 |
|
Common
units - MPC |
|
44 |
|
|
|
27 |
|
|
|
114 |
|
|
|
75 |
|
General partner units (GP) - MPC |
|
5 |
|
|
|
1 |
|
|
|
13 |
|
|
|
3 |
|
Incentive distribution rights - MPC |
|
49 |
|
|
|
8 |
|
|
|
135 |
|
|
|
17 |
|
Total GP and LP distribution declared |
|
233 |
|
|
|
47 |
|
|
|
655 |
|
|
|
126 |
|
Redeemable preferred units(a) |
|
16 |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
Total distribution declared |
$ |
249 |
|
|
$ |
47 |
|
|
$ |
680 |
|
|
$ |
126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution coverage ratio(b) |
|
1.22x |
|
|
1.15x |
|
|
1.22x |
|
|
1.37x |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
|
Net
cash flow provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
$ |
339 |
|
|
$ |
85 |
|
|
$ |
932 |
|
|
$ |
258 |
|
Investing activities |
|
(323 |
) |
|
|
(82 |
) |
|
|
(849 |
) |
|
|
(191 |
) |
Financing activities |
|
157 |
|
|
|
(43 |
) |
|
|
82 |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA attributable to MPLX LP(c) |
$ |
375 |
|
|
$ |
66 |
|
|
$ |
1,028 |
|
|
$ |
200 |
|
DCF
attributable to GP and LP unitholders(c) |
|
285 |
|
|
|
54 |
|
|
|
797 |
|
|
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
The preferred units are considered redeemable securities due to the
existence of redemption provisions upon a deemed liquidation event
which is outside our control.
(b)
DCF attributable to GP and LP unitholders divided by total GP and
LP distribution declared.
(c)
Non-GAAP measure. See reconciliation below.
Select Balance Sheet Data
(unaudited) |
|
|
|
|
|
(In millions, except ratio data) |
|
Sept. 30 2016 |
|
|
Dec. 31 2015 |
Total
assets |
$ |
16,415 |
|
|
$ |
16,104 |
|
Total
debt |
|
4,412 |
|
|
|
5,264 |
|
Redeemable preferred units |
|
1,000 |
|
|
|
- |
|
Total
equity |
|
10,154 |
|
|
|
9,667 |
|
Consolidated total debt to LTM pro forma adjusted EBITDA(a) |
|
3.5x |
|
|
4.5x |
|
|
|
|
|
|
Partnership units outstanding: |
|
|
|
|
|
General partner units |
|
7 |
|
|
|
7 |
|
Class
B units(b) |
|
4 |
|
|
|
8 |
|
MPC-held common units |
|
87 |
|
|
|
57 |
|
Public
common units |
|
262 |
|
|
|
240 |
|
|
|
|
|
|
|
(a)
Calculated using face value total debt and LTM pro forma adjusted
EBITDA, which is pro forma for acquisitions. Face value total debt
includes approximately $439 million and $472 million of unamortized
discount and approximately $7 million and $8 million of unamortized
debt issuance costs as of September 30, 2016 and December 31,
2015, respectively.
(b)
Class B units were issued to and are held by M&R MWE
Liberty LLC and certain of its affiliates, an affiliate of The
Energy & Minerals Group. The Class B units will
convert into common units at a rate of 1.09 common units and will
receive $6.20 in cash for each Class B unit in two equal
installments, the first of which occurred on July 1, 2016, and
the second of which will occur July 1, 2017. Class B units do not
receive distributions.
Operating Statistics (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
|
|
2016 |
|
|
2015 |
|
% Change |
|
|
2016 |
|
|
2015 |
|
% Change |
Logistics and Storage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline throughput (thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude
oil pipelines |
|
1,180 |
|
|
|
1,135 |
|
|
4 |
% |
|
|
1,090 |
|
|
|
1,091 |
|
|
- |
% |
Product pipelines |
|
907 |
|
|
|
896 |
|
|
1 |
% |
|
|
909 |
|
|
|
907 |
|
|
- |
% |
Total
pipeline throughput |
|
2,087 |
|
|
|
2,031 |
|
|
3 |
% |
|
|
1,999 |
|
|
|
1,998 |
|
|
- |
% |
Average tariff rates ($ per barrel) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude
oil pipelines |
$ |
0.64 |
|
|
$ |
0.66 |
|
|
(3 |
)% |
|
$ |
0.67 |
|
|
$ |
0.66 |
|
|
2 |
% |
Product pipelines |
|
0.70 |
|
|
|
0.65 |
|
|
8 |
% |
|
|
0.68 |
|
|
|
0.64 |
|
|
6 |
% |
Total |
|
0.67 |
|
|
|
0.66 |
|
|
2 |
% |
|
|
0.68 |
|
|
|
0.65 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barges
at period-end |
|
205 |
|
|
|
202 |
|
|
1 |
% |
|
|
205 |
|
|
|
202 |
|
|
1 |
% |
Towboats at period-end |
|
18 |
|
|
|
18 |
|
|
- |
% |
|
|
18 |
|
|
|
18 |
|
|
- |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering and Processing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering throughput (mmcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
946 |
|
|
|
|
|
|
|
|
922 |
|
|
|
|
|
|
Utica
operations |
|
916 |
|
|
|
|
|
|
|
|
936 |
|
|
|
|
|
|
Southwest operations |
|
1,444 |
|
|
|
|
|
|
|
|
1,455 |
|
|
|
|
|
|
Total
gathering throughput |
|
3,306 |
|
|
|
|
|
|
|
|
3,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas processed (mmcf/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
3,273 |
|
|
|
|
|
|
|
|
3,166 |
|
|
|
|
|
|
Utica
operations |
|
1,050 |
|
|
|
|
|
|
|
|
1,068 |
|
|
|
|
|
|
Southwest operations |
|
1,339 |
|
|
|
|
|
|
|
|
1,209 |
|
|
|
|
|
|
Southern Appalachian operations |
|
244 |
|
|
|
|
|
|
|
|
248 |
|
|
|
|
|
|
Total
natural gas processed |
|
5,906 |
|
|
|
|
|
|
|
|
5,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C2 +
NGLs fractionated (mbpd) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marcellus operations |
|
274 |
|
|
|
|
|
|
|
|
254 |
|
|
|
|
|
|
Utica
operations |
|
41 |
|
|
|
|
|
|
|
|
43 |
|
|
|
|
|
|
Southwest operations |
|
19 |
|
|
|
|
|
|
|
|
17 |
|
|
|
|
|
|
Southern Appalachian operations |
|
14 |
|
|
|
|
|
|
|
|
16 |
|
|
|
|
|
|
Total
C2 + NGLs fractionated |
|
348 |
|
|
|
|
|
|
|
|
330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Segment Operating
Income Attributable to MPLX LP to Income From Operations
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
L&S segment operating income attributable to MPLX LP |
$ |
124 |
|
|
$ |
81 |
|
|
$ |
335 |
|
|
$ |
251 |
|
G&P segment operating income attributable to MPLX LP(a) |
|
293 |
|
|
|
- |
|
|
|
821 |
|
|
|
- |
|
Segment portion attributable to equity affiliates |
|
(41 |
) |
|
|
- |
|
|
|
(130 |
) |
|
|
- |
|
Segment portion attributable to Predecessor(b) |
|
- |
|
|
|
31 |
|
|
|
34 |
|
|
|
99 |
|
Income
(loss) from equity method investments |
|
6 |
|
|
|
- |
|
|
|
(72 |
) |
|
|
- |
|
Other
income - related parties |
|
11 |
|
|
|
- |
|
|
|
29 |
|
|
|
- |
|
Unrealized derivative loss |
|
(2 |
) |
|
|
- |
|
|
|
(23 |
) |
|
|
- |
|
Depreciation and amortization |
|
(138 |
) |
|
|
(19 |
) |
|
|
(407 |
) |
|
|
(58 |
) |
Impairment expense |
|
- |
|
|
|
- |
|
|
|
(130 |
) |
|
|
- |
|
General and administrative expenses |
|
(46 |
) |
|
|
(25 |
) |
|
|
(147 |
) |
|
|
(68 |
) |
Income from operations |
$ |
207 |
|
|
$ |
68 |
|
|
$ |
310 |
|
|
$ |
224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
All Partnership-operated, non-wholly owned subsidiaries are treated
as if they are consolidated.
(b)
The operating income of the Predecessor of the inland marine
business is excluded from segment operating income attributable to
MPLX LP prior to the March 31, 2016, acquisition.
Pro Forma Reconciliation to Pro Forma
Income from Operations (unaudited)(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
L&S segment operating income attributable to MPLX LP |
$ |
124 |
|
|
$ |
81 |
|
|
$ |
335 |
|
|
$ |
251 |
|
G&P segment operating income attributable to MPLX LP |
|
293 |
|
|
|
- |
|
|
|
821 |
|
|
|
- |
|
Pro
forma G&P segment operating income attributable to MPLX LP |
|
- |
|
|
|
266 |
|
|
|
- |
|
|
|
754 |
|
Segment portion attributable to equity affiliates |
|
(41 |
) |
|
|
38 |
|
|
|
(130 |
) |
|
|
122 |
|
Segment portion attributable to Predecessor(a) |
|
- |
|
|
|
- |
|
|
|
34 |
|
|
|
- |
|
Income
(loss) from equity method investments |
|
6 |
|
|
|
6 |
|
|
|
(72 |
) |
|
|
4 |
|
Other
income (loss) - related parties |
|
11 |
|
|
|
(2 |
) |
|
|
29 |
|
|
|
(2 |
) |
Unrealized derivative (loss) gain |
|
(2 |
) |
|
|
7 |
|
|
|
(23 |
) |
|
|
(9 |
) |
Depreciation and amortization |
|
(138 |
) |
|
|
(148 |
) |
|
|
(407 |
) |
|
|
(427 |
) |
Impairment expense |
|
- |
|
|
|
- |
|
|
|
(130 |
) |
|
|
(26 |
) |
General and administrative expenses |
|
(46 |
) |
|
|
(55 |
) |
|
|
(147 |
) |
|
|
(165 |
) |
Pro forma income from operations |
$ |
207 |
|
|
$ |
193 |
|
|
$ |
310 |
|
|
$ |
502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
This table reconciles pro forma data presented in the pro forma
financial information section above to the closest GAAP
measure.
Reconciliation of Adjusted EBITDA
attributable to MPLX LP and DCF attributable to GP and LP
unitholders from Net Income (Loss) (unaudited) |
|
|
|
|
|
|
|
Three Months Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Net income |
$ |
143 |
|
|
$ |
63 |
|
|
$ |
126 |
|
|
$ |
207 |
|
Plus: Depreciation and amortization |
|
138 |
|
|
|
19 |
|
|
|
407 |
|
|
|
58 |
|
Benefit for income taxes |
|
- |
|
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
Amortization of deferred financing costs |
|
11 |
|
|
|
- |
|
|
|
34 |
|
|
|
- |
|
Net
interest and other financial costs |
|
53 |
|
|
|
5 |
|
|
|
162 |
|
|
|
17 |
|
Non-cash equity-based compensation |
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
3 |
|
Impairment expense |
|
- |
|
|
|
- |
|
|
|
130 |
|
|
|
- |
|
(Income) loss from equity investments |
|
(6 |
) |
|
|
- |
|
|
|
72 |
|
|
|
- |
|
Distributions from unconsolidated subsidiaries |
|
33 |
|
|
|
- |
|
|
|
111 |
|
|
|
- |
|
Unrealized loss on commodity hedges |
|
2 |
|
|
|
- |
|
|
|
23 |
|
|
|
- |
|
Acquisition costs |
|
- |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
4 |
|
Adjusted EBITDA |
|
377 |
|
|
|
93 |
|
|
|
1,061 |
|
|
|
289 |
|
Less: Adjusted EBITDA attributable to
noncontrolling
interests |
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
1 |
|
Adjusted EBITDA attributable to Predecessor(a) |
|
- |
|
|
|
27 |
|
|
|
30 |
|
|
|
88 |
|
Adjusted EBITDA attributable to MPLX LP |
|
375 |
|
|
|
66 |
|
|
|
1,028 |
|
|
|
200 |
|
Plus: Current period cash received/deferred revenue
for
committed volume deficiencies(b) |
|
10 |
|
|
|
11 |
|
|
|
31 |
|
|
|
33 |
|
Less:
Net interest and other financial costs |
|
53 |
|
|
|
5 |
|
|
|
162 |
|
|
|
17 |
|
Gain
on disposal of assets |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Equity
investment maintenance capital expenditures |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Current portion of income taxes |
|
4 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Maintenance capital expenditures paid |
|
20 |
|
|
|
8 |
|
|
|
48 |
|
|
|
16 |
|
Volume
deficiency credits recognized(c) |
|
9 |
|
|
|
10 |
|
|
|
25 |
|
|
|
29 |
|
Other |
|
(3 |
) |
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
Adjustments attributable to Predecessor(a) |
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
(1 |
) |
DCF |
|
301 |
|
|
|
54 |
|
|
|
822 |
|
|
|
172 |
|
Less:
Preferred unit distributions |
|
16 |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
DCF attributable to GP and LP unitholders |
$ |
285 |
|
|
$ |
54 |
|
|
$ |
797 |
|
|
$ |
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
The Adjusted EBITDA and DCF adjustments related to the Predecessor
are excluded from adjusted EBITDA attributable to MPLX LP and DCF
prior to the March 31, 2016, acquisition.
(b)
Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
(c)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not DCF.
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
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Net cash provided by operating activities |
$ |
339 |
|
|
$ |
85 |
|
|
$ |
932 |
|
|
$ |
258 |
|
Less:
Changes in working capital items |
|
28 |
|
|
|
1 |
|
|
|
54 |
|
|
|
(8 |
) |
All other, net |
|
(3 |
) |
|
|
3 |
|
|
|
18 |
|
|
|
2 |
|
Plus: Non-cash equity-based compensation |
|
3 |
|
|
|
2 |
|
|
|
9 |
|
|
|
3 |
|
Net
gain on disposal of assets |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Net
interest and other financial costs |
|
53 |
|
|
|
5 |
|
|
|
162 |
|
|
|
17 |
|
Current income taxes expense |
|
3 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Asset
retirement expenditures |
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
Unrealized loss on commodity hedges |
|
2 |
|
|
|
- |
|
|
|
23 |
|
|
|
- |
|
Acquisition costs |
|
- |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
4 |
|
Adjusted EBITDA |
|
377 |
|
|
|
93 |
|
|
|
1,061 |
|
|
|
289 |
|
Less: Adjusted EBITDA attributable to noncontrolling
interests |
|
2 |
|
|
|
- |
|
|
|
3 |
|
|
|
1 |
|
Adjusted EBITDA attributable to
Predecessor(a) |
|
- |
|
|
|
27 |
|
|
|
30 |
|
|
|
88 |
|
Adjusted EBITDA attributable to MPLX LP |
|
375 |
|
|
|
66 |
|
|
|
1,028 |
|
|
|
200 |
|
Plus: Current period cash received/deferred revenue for
committed volume deficiencies(b) |
|
10 |
|
|
|
11 |
|
|
|
31 |
|
|
|
33 |
|
Less:
Net interest and other financial costs |
|
53 |
|
|
|
5 |
|
|
|
162 |
|
|
|
17 |
|
Gain
on disposal of assets |
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Equity
investment maintenance capital expenditures |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Current portion of income taxes |
|
4 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
Maintenance capital expenditures paid |
|
20 |
|
|
|
8 |
|
|
|
48 |
|
|
|
16 |
|
Volume
deficiency credits recognized(c) |
|
9 |
|
|
|
10 |
|
|
|
25 |
|
|
|
29 |
|
Other |
|
(3 |
) |
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
Adjustments attributable to Predecessor(a) |
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
(1 |
) |
DCF |
|
301 |
|
|
|
54 |
|
|
|
822 |
|
|
|
172 |
|
Less:
Preferred unit distributions |
|
16 |
|
|
|
- |
|
|
|
25 |
|
|
|
- |
|
DCF attributable to GP and LP unitholders |
$ |
285 |
|
|
$ |
54 |
|
|
$ |
797 |
|
|
$ |
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
The adjusted EBITDA and DCF adjustments related to the Predecessor
are excluded from Adjusted EBITDA attributable to MPLX LP and DCF
prior to the March 31, 2016, acquisition.
(b)
Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
(c)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not DCF.
Capital Expenditures
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Sept. 30 |
|
|
Nine Months
Ended
Sept. 30 |
(In millions) |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
Capital Expenditures(a): |
|
|
|
|
|
|
|
|
|
|
|
Maintenance |
$ |
17 |
|
|
$ |
11 |
|
|
$ |
48 |
|
|
$ |
19 |
|
Growth |
|
292 |
|
|
|
55 |
|
|
|
825 |
|
|
|
130 |
|
Total
capital expenditures |
|
309 |
|
|
|
66 |
|
|
|
873 |
|
|
|
149 |
|
Less: Increase (decrease) in capital accruals |
|
3 |
|
|
|
6 |
|
|
|
(4 |
) |
|
|
19 |
|
Asset
retirement expenditures |
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
Additions to property, plant and
equipment |
|
305 |
|
|
|
59 |
|
|
|
874 |
|
|
|
129 |
|
Capital expenditures of unconsolidated
subsidiaries(b) |
|
34 |
|
|
|
- |
|
|
|
94 |
|
|
|
- |
|
Total gross capital expenditures |
|
339 |
|
|
|
59 |
|
|
|
968 |
|
|
|
129 |
|
Less:
Joint venture partner contributions |
|
16 |
|
|
|
- |
|
|
|
45 |
|
|
|
- |
|
Total gross capital expenditures, net |
|
323 |
|
|
|
59 |
|
|
|
923 |
|
|
|
129 |
|
Less:
Maintenance capital |
|
17 |
|
|
|
11 |
|
|
|
48 |
|
|
|
19 |
|
Total growth capital expenditures |
$ |
306 |
|
|
$ |
48 |
|
|
$ |
875 |
|
|
$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes capital expenditures of the Predecessor for all periods
presented.
(b)
Capital expenditures includes amounts related to unconsolidated,
partnership operated subsidiaries.
2016 Forecast - Reconciliation of
Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP
and LP unitholders from Net Income (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
Low |
|
|
High |
Net income |
$ |
140 |
|
|
$ |
240 |
|
Plus: Depreciation and amortization |
|
540 |
|
|
|
540 |
|
Benefit for Income taxes |
|
(20 |
) |
|
|
(20 |
) |
Amortization of deferred financing costs |
|
45 |
|
|
|
45 |
|
Non-cash equity-based compensation |
|
10 |
|
|
|
10 |
|
Impairment expense |
|
130 |
|
|
|
130 |
|
Net
interest and other financial costs |
|
220 |
|
|
|
220 |
|
Loss
from equity investments(a) |
|
70 |
|
|
|
70 |
|
Distributions from equity investments |
|
145 |
|
|
|
145 |
|
Unrealized loss on commodity hedges |
|
10 |
|
|
|
10 |
|
Acquisition costs |
|
(1 |
) |
|
|
(1 |
) |
Other |
|
14 |
|
|
|
14 |
|
Adjusted EBITDA |
|
1,303 |
|
|
|
1,403 |
|
Less:
Adjusted EBITDA attributable to noncontrolling interests |
|
3 |
|
|
|
3 |
|
Adjusted EBITDA attributable to MPLX LP |
|
1,300 |
|
|
|
1,400 |
|
Plus: Current period cash received/deferred revenue for
committed volume
deficiencies(b) |
|
40 |
|
|
|
40 |
|
Less: Net interest and other financial costs |
|
220 |
|
|
|
220 |
|
Equity
investment maintenance capital expenditures |
|
2 |
|
|
|
2 |
|
Maintenance capital expenditures paid |
|
60 |
|
|
|
60 |
|
Volume
deficiency credits recognized(c) |
|
35 |
|
|
|
35 |
|
Adjustments attributable to Predecessor(d) |
|
(1 |
) |
|
|
(1 |
) |
All
other, net |
|
24 |
|
|
|
24 |
|
DCF |
|
1,000 |
|
|
|
1,100 |
|
Less:
Preferred unit distributions |
|
41 |
|
|
|
41 |
|
DCF available to GP and LP unitholders |
$ |
959 |
|
|
$ |
1,059 |
|
|
|
|
|
|
|
(a)
Includes a pretax, non-cash impairment of $89 million related to an
equity method investment.
(b)
Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
(c)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not DCF.
(d)
The DCF adjustments related to the Predecessor are excluded from
DCF prior to the March 31, 2016, acquisition.
2016 Forecast - Reconciliation of Adjusted
EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP
unitholders from Net Cash Provided by Operating Activities
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
Low |
|
|
High |
Net cash provided by operating activities |
$ |
1,075 |
|
|
$ |
1,175 |
|
Less:
Changes in working capital items |
|
(8 |
) |
|
|
(8 |
) |
All
other, net |
|
22 |
|
|
|
22 |
|
Plus: Non-cash equity based compensation |
|
10 |
|
|
|
10 |
|
Net
cash interest and other financial costs |
|
220 |
|
|
|
220 |
|
Current Income tax expense |
|
1 |
|
|
|
1 |
|
Asset
retirement expenditures |
|
2 |
|
|
|
2 |
|
Unrealized loss on commodity hedges |
|
10 |
|
|
|
10 |
|
Acquisition costs |
|
(1 |
) |
|
|
(1 |
) |
Adjusted EBITDA |
|
1,303 |
|
|
|
1,403 |
|
Less:
Adjusted EBITDA attributable to noncontrolling interests |
|
3 |
|
|
|
3 |
|
Adjusted EBITDA attributable to MPLX LP |
|
1,300 |
|
|
|
1,400 |
|
Plus: Current period cash received/deferred revenue for
committed volume
deficiencies(a) |
|
40 |
|
|
|
40 |
|
Less: Net interest and other financial costs |
|
220 |
|
|
|
220 |
|
Equity
investment maintenance capital expenditures |
|
2 |
|
|
|
2 |
|
Maintenance capital expenditures paid |
|
60 |
|
|
|
60 |
|
Volume
deficiency credits(b) |
|
35 |
|
|
|
35 |
|
Adjustments attributable to Predecessor(c) |
|
(1 |
) |
|
|
(1 |
) |
All
other, net |
|
24 |
|
|
|
24 |
|
DCF |
|
1,000 |
|
|
|
1,100 |
|
Less:
Preferred unit distributions |
|
41 |
|
|
|
41 |
|
DCF available to GP and LP unitholders |
$ |
959 |
|
|
$ |
1,059 |
|
|
|
|
|
|
|
(a)
Deficiency payments included in DCF that are not included in net
income or adjusted EBITDA.
(b)
Current period revenue related to volume deficiency credits
generated in prior periods that are included in adjusted EBITDA but
not DCF.
(c)
The DCF adjustments related to the Predecessor are excluded from
DCF prior to the March 31, 2016, acquisition.
MPLX Q3 2016 Earnings
Release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: MPLX LP via Globenewswire
MPLX (NYSE:MPLX)
Historical Stock Chart
From Apr 2024 to May 2024
MPLX (NYSE:MPLX)
Historical Stock Chart
From May 2023 to May 2024