MPLX LP Reports Third-Quarter 2023 Financial Results
- MPLX LP reported a 10% increase in quarterly distribution to $0.85 per unit.
- The company generated $1,244 million in net cash provided by operating activities.
- Adjusted EBITDA was $1,596 million.
- Distributable cash flow was $1,373 million.
- MPLX returned $799 million to unitholders.
- The leverage ratio was 3.4x at the end of the quarter.
- None.
- Reported third-quarter net income attributable to MPLX of
and generated net cash provided by operating activities of$918 million $1,244 million - Adjusted EBITDA attributable to MPLX of
and distributable cash flow of$1,596 million $1,373 million - Returned
in capital to unitholders through distributions$799 million - Announced quarterly distribution increase of
10% to per unit, or$0.85 per unit annualized$3.40
MPLX LP (NYSE: MPLX) today reported third-quarter 2023 net income attributable to MPLX of
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) attributable to MPLX was
During the quarter, MPLX generated
"Our business continues to grow and generate strong cash flow," said Michael J. Hennigan, MPLX chairman, president and chief executive officer. "We announced a
Financial Highlights (unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(In millions, except per unit and ratio data) | 2023 | 2022 | 2023 | 2022 | |||||||
Net income attributable to MPLX LP | $ | 918 | $ | 1,428 | $ | 2,794 | $ | 3,128 | |||
Adjusted EBITDA attributable to MPLX LP(a) | 1,596 | 1,471 | 4,646 | 4,321 | |||||||
Net cash provided by operating activities | 1,244 | 1,039 | 3,908 | 3,651 | |||||||
Distributable cash flow attributable to MPLX LP(a) | 1,373 | 1,264 | 3,956 | 3,711 | |||||||
Distribution per common unit(b) | $ | 0.850 | $ | 0.775 | $ | 2.400 | $ | 2.185 | |||
Distribution coverage ratio(c) | 1.6x | 1.6x | 1.6x | 1.6x | |||||||
Consolidated total debt to LTM adjusted EBITDA(d) | 3.4x | 3.5x | 3.4x | 3.5x | |||||||
Cash paid for common unit repurchases | $ | — | $ | 180 | $ | — | $ | 315 | |||
(a) | Non-GAAP measures calculated before distributions to preferred unitholders. See reconciliation in the tables that follow. |
(b) | Distributions declared by the board of directors of MPLX's general partner. |
(c) | DCF attributable to GP and LP unitholders divided by total GP and LP distributions. |
(d) | Calculated using face value total debt and LTM adjusted EBITDA. See reconciliation in the tables that follow. |
Segment Results | |||||||||||
(In millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
Segment adjusted EBITDA attributable to MPLX LP (unaudited) | 2023 | 2022 | 2023 | 2022 | |||||||
Logistics and Storage | $ | 1,091 | $ | 969 | $ | 3,139 | $ | 2,839 | |||
Gathering and Processing | 505 | 502 | 1,507 | 1,482 | |||||||
Logistics & Storage
L&S segment adjusted EBITDA for the third quarter of 2023 increased by
Total pipeline throughputs were 5.9 million barrels per day (bpd) in the third quarter, an increase of
Gathering & Processing
G&P segment adjusted EBITDA for the third quarter of 2023 increased by
In the third quarter of 2023:
- Gathered volumes averaged 6.3 billion cubic feet per day (bcf/d), a
3% increase from the third quarter of 2022. - Processed volumes averaged 9.0 bcf/d, a
5% increase versus the third quarter of 2022. - Fractionated volumes averaged 613 thousand bpd, a
9% increase versus the third quarter of 2022.
In the Marcellus:
- Gathered volumes averaged 1.4 bcf/d in the third quarter, a
4% increase versus the third quarter of 2022. - Processed volumes averaged 5.8 bcf/d in the third quarter, a
5% increase versus the third quarter of 2022. - Fractionated volumes averaged 546 thousand bpd in the third quarter, a
10% increase versus the third quarter of 2022.
Strategic Update
In the L&S segment, MPLX is expanding its natural gas and natural gas liquids long-haul and crude gathering pipelines supporting the Permian and Bakken basins. Specifically in the Permian, working with its partners, MPLX is progressing its natural gas strategy. The Whistler pipeline expansion from 2.0 bcf/d to 2.5 bcf/d was completed at the end of the third quarter. Separately, construction is progressing on the associated Agua Dulce Corpus Christi (ADCC) Pipeline lateral, which is expected to be in service in the third quarter of 2024. MPLX is progressing its natural gas liquids strategy with the expansion of the BANGL joint venture pipeline to a capacity of 200 thousand bpd, with expected completion in the first half of 2025.
In the G&P segment, MPLX remains focused on the Permian and Marcellus basins in response to producer demand. In the Permian's
Financial Position and Liquidity
As of September 30, 2023, MPLX had
Conference Call
At 9:30 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 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 materials, 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
Investor Relations Contact: (419) 421-2071
Kristina Kazarian, Vice President, Finance and Investor Relations
Brian Worthington, Director, Investor Relations
Isaac Feeney, Supervisor, Investor Relations
Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager
Non-GAAP references
In addition to our financial information presented in accordance with
The Partnership 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.
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.
Adjusted FCF and adjusted free cash flow after distributions 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 Adjusted FCF as net cash provided by operating activities adjusted for (i) net cash used in investing activities; (ii) cash contributions from MPC; (iii) cash contributions from noncontrolling interests and (iv) cash distributions to noncontrolling interests. We define adjusted free cash flow after distributions as Adjusted FCF less base 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 regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations, financial priorities, including with respect to positive free cash flow and distribution coverage, strategic plans, capital return plans, capital expenditure plans, operating cost reduction objectives, and environmental, social and governance ("ESG") goals and targets, including those related to greenhouse gas emissions, biodiversity, diversity and inclusion and ESG reporting. Forward-looking and other statements regarding our ESG goals and targets are not an indication that these statements are material to investors or required to be disclosed in our filings with the Securities Exchange Commission (SEC). In addition, historical, current, and forward-looking ESG-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. You can identify forward-looking statements by words such as "anticipate," "believe," "commitment," "could," "design," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "prospective," "pursue," "seek," "should," "strategy," "target," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. 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: political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas, NGLs or renewables, or taxation; volatility in and degradation of general economic, market, industry or business conditions due to inflation, rising interest rates, the military conflict between
Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.
Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 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 Annual Report on Form 10-K, Quarterly Reports on Form 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 Consolidated Results of Operations (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions, except per unit data) | 2023 | 2022 | 2023 | 2022 | |||||||
Revenues and other income: | |||||||||||
Operating revenue | $ | 1,289 | $ | 1,430 | $ | 3,651 | $ | 4,190 | |||
Operating revenue - related parties | 1,425 | 1,313 | 4,108 | 3,850 | |||||||
Income from equity method investments | 159 | 125 | 438 | 335 | |||||||
Other income(a) | 39 | 533 | 118 | 576 | |||||||
Total revenues and other income | 2,912 | 3,401 | 8,315 | 8,951 | |||||||
Costs and expenses: | |||||||||||
Operating expenses (including purchased product costs) | 861 | 933 | 2,317 | 2,752 | |||||||
Operating expenses - related parties | 450 | 374 | 1,184 | 1,078 | |||||||
Depreciation and amortization | 301 | 302 | 907 | 925 | |||||||
General and administrative expenses | 102 | 88 | 280 | 248 | |||||||
Other taxes | 44 | 30 | 102 | 97 | |||||||
Total costs and expenses | 1,758 | 1,727 | 4,790 | 5,100 | |||||||
Income from operations | 1,154 | 1,674 | 3,525 | 3,851 | |||||||
Interest and other financial costs | 225 | 236 | 701 | 691 | |||||||
Income before income taxes | 929 | 1,438 | 2,824 | 3,160 | |||||||
Provision for income taxes | 1 | 1 | 2 | 6 | |||||||
Net income | 928 | 1,437 | 2,822 | 3,154 | |||||||
Less: Net income attributable to noncontrolling interests | 10 | 9 | 28 | 26 | |||||||
Net income attributable to MPLX LP | 918 | 1,428 | 2,794 | 3,128 | |||||||
Less: Series A preferred unitholders interest in net income | 25 | 23 | 71 | 65 | |||||||
Less: Series B preferred unitholders interest in net income | — | 10 | 5 | 31 | |||||||
Limited partners' interest in net income attributable to MPLX LP | $ | 893 | $ | 1,395 | $ | 2,718 | $ | 3,032 | |||
Per Unit Data | |||||||||||
Net income attributable to MPLX LP per limited partner unit: | |||||||||||
Common – basic | $ | 0.89 | $ | 1.36 | $ | 2.70 | $ | 2.97 | |||
Common – diluted | $ | 0.89 | $ | 1.36 | $ | 2.70 | $ | 2.97 | |||
Weighted average limited partner units outstanding: | |||||||||||
Common units – basic | 1,001 | 1,010 | 1,001 | 1,012 | |||||||
Common units – diluted | 1,001 | 1,011 | 1,001 | 1,013 | |||||||
(a) | The three and nine months ended September 30, 2022, include a |
Select Financial Statistics (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions, except ratio data) | 2023 | 2022 | 2023 | 2022 | |||||||
Common unit distributions declared by MPLX LP | |||||||||||
Common units (LP) – public | $ | 301 | $ | 275 | $ | 849 | $ | 789 | |||
Common units – MPC | 550 | 502 | 1,554 | 1,415 | |||||||
Total GP and LP distribution declared | 851 | 777 | 2,403 | 2,204 | |||||||
Preferred unit distributions(a) | |||||||||||
Series A preferred unit distributions | 25 | 23 | 71 | 65 | |||||||
Series B preferred unit distributions | — | 10 | 5 | 31 | |||||||
Total preferred unit distributions | 25 | 33 | 76 | 96 | |||||||
Other Financial Data | |||||||||||
Adjusted EBITDA attributable to MPLX LP(b) | 1,596 | 1,471 | 4,646 | 4,321 | |||||||
DCF attributable to GP and LP unitholders(b) | $ | 1,348 | $ | 1,231 | $ | 3,880 | $ | 3,615 | |||
Distribution coverage ratio(c) | 1.6x | 1.6x | 1.6x | 1.6x | |||||||
Cash Flow Data | |||||||||||
Net cash flow provided by (used in): | |||||||||||
Operating activities | $ | 1,244 | $ | 1,039 | $ | 3,908 | $ | 3,651 | |||
Investing activities | (236) | (265) | (727) | (676) | |||||||
Financing activities | $ | (803) | $ | (951) | $ | (2,459) | $ | (2,867) | |||
(a) | Includes MPLX distributions declared on the Series A and Series B preferred units as well as distributions earned on the Series B preferred units. Series A preferred unitholders receive the greater of |
(b) | Non-GAAP measure. See reconciliation below. |
(c) | DCF attributable to GP and LP unitholders divided by total GP and LP distribution declared. |
Financial Data (unaudited) | |||||
(In millions, except ratio data) | September 30, | December 31, | |||
Cash and cash equivalents | $ | 960 | $ | 238 | |
Total assets | 36,120 | 35,665 | |||
Total debt(a) | 20,418 | 19,796 | |||
Redeemable preferred units | 970 | 968 | |||
Total equity | $ | 12,346 | $ | 12,546 | |
Consolidated debt to LTM adjusted EBITDA(b) | 3.4x | 3.5x | |||
Partnership units outstanding: | |||||
MPC-held common units | 647 | 647 | |||
Public common units | 354 | 354 | |||
(a) | There were no borrowings on the loan agreement with MPC as of September 30, 2023, or December 31, 2022. Presented net of unamortized debt issuance costs, unamortized discount/premium and includes long-term debt due within one year. |
(b) | Calculated using face value total debt and LTM adjusted EBITDA. Face value total debt was |
Operating Statistics (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | % | 2023 | 2022 | % | ||||||||||
Logistics and Storage | |||||||||||||||
Pipeline throughput (mbpd) | |||||||||||||||
Crude oil pipelines | 3,911 | 3,596 | 9 % | 3,796 | 3,551 | 7 % | |||||||||
Product pipelines | 1,975 | 2,169 | (9) % | 2,027 | 2,125 | (5) % | |||||||||
Total pipelines | 5,886 | 5,765 | 2 % | 5,823 | 5,676 | 3 % | |||||||||
Average tariff rates ($ per barrel) | |||||||||||||||
Crude oil pipelines | $ | 0.99 | $ | 0.93 | 6 % | $ | 0.95 | $ | 0.91 | 4 % | |||||
Product pipelines | 0.99 | 0.80 | 24 % | 0.88 | 0.80 | 10 % | |||||||||
Total pipelines | $ | 0.99 | $ | 0.88 | 13 % | $ | 0.93 | $ | 0.86 | 8 % | |||||
Terminal throughput (mbpd) | 3,228 | 3,026 | 7 % | 3,167 | 3,023 | 5 % | |||||||||
Barges at period-end | 305 | 296 | 3 % | 305 | 296 | 3 % | |||||||||
Towboats at period-end | 27 | 23 | 17 % | 27 | 23 | 17 % | |||||||||
Gathering and Processing Operating Statistics (unaudited) - Consolidated(a) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | % | 2023 | 2022 | % | ||||||||||
Gathering throughput (MMcf/d) | |||||||||||||||
Marcellus Operations | 1,376 | 1,325 | 4 % | 1,353 | 1,308 | 3 % | |||||||||
Utica Operations(b) | — | — | — % | — | — | — % | |||||||||
Southwest Operations | 1,302 | 1,362 | (4) % | 1,345 | 1,367 | (2) % | |||||||||
Bakken Operations | 160 | 147 | 9 % | 159 | 147 | 8 % | |||||||||
Rockies Operations | 490 | 452 | 8 % | 463 | 424 | 9 % | |||||||||
Total gathering throughput | 3,328 | 3,286 | 1 % | 3,320 | 3,246 | 2 % | |||||||||
Natural gas processed (MMcf/d) | |||||||||||||||
Marcellus Operations | 4,187 | 4,060 | 3 % | 4,107 | 4,021 | 2 % | |||||||||
Utica Operations(b) | — | — | — % | — | — | — % | |||||||||
Southwest Operations | 1,405 | 1,502 | (6) % | 1,442 | 1,446 | — % | |||||||||
Southern Appalachian Operations | 207 | 205 | 1 % | 219 | 220 | — % | |||||||||
Bakken Operations | 159 | 130 | 22 % | 157 | 138 | 14 % | |||||||||
Rockies Operations | 491 | 462 | 6 % | 472 | 436 | 8 % | |||||||||
Total natural gas processed | 6,449 | 6,359 | 1 % | 6,397 | 6,261 | 2 % | |||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||
Marcellus Operations | 546 | 496 | 10 % | 533 | 478 | 12 % | |||||||||
Utica Operations(b) | — | — | — % | — | — | — % | |||||||||
Southern Appalachian Operations | 10 | 12 | (17) % | 10 | 11 | (9) % | |||||||||
Bakken Operations | 20 | 21 | (5) % | 19 | 21 | (10) % | |||||||||
Rockies Operations | 3 | 3 | — % | 3 | 3 | — % | |||||||||
Total C2 + NGLs fractionated | 579 | 532 | 9 % | 565 | 513 | 10 % | |||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements. |
(b) | The |
Gathering and Processing Operating Statistics (unaudited) - Operated(a) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2023 | 2022 | % | 2023 | 2022 | % | ||||||||||
Gathering throughput (MMcf/d) | |||||||||||||||
Marcellus Operations | 1,376 | 1,325 | 4 % | 1,353 | 1,308 | 3 % | |||||||||
Utica Operations | 2,375 | 2,381 | — % | 2,387 | 2,048 | 17 % | |||||||||
Southwest Operations | 1,742 | 1,642 | 6 % | 1,775 | 1,605 | 11 % | |||||||||
Bakken Operations | 160 | 147 | 9 % | 159 | 147 | 8 % | |||||||||
Rockies Operations | 604 | 588 | 3 % | 584 | 556 | 5 % | |||||||||
Total gathering throughput | 6,257 | 6,083 | 3 % | 6,258 | 5,664 | 10 % | |||||||||
Natural gas processed (MMcf/d) | |||||||||||||||
Marcellus Operations | 5,803 | 5,535 | 5 % | 5,683 | 5,503 | 3 % | |||||||||
Utica Operations | 557 | 518 | 8 % | 533 | 488 | 9 % | |||||||||
Southwest Operations | 1,744 | 1,666 | 5 % | 1,771 | 1,616 | 10 % | |||||||||
Southern Appalachian Operations | 207 | 205 | 1 % | 219 | 220 | — % | |||||||||
Bakken Operations | 159 | 130 | 22 % | 157 | 138 | 14 % | |||||||||
Rockies Operations | 491 | 462 | 6 % | 472 | 436 | 8 % | |||||||||
Total natural gas processed | 8,961 | 8,516 | 5 % | 8,835 | 8,401 | 5 % | |||||||||
C2 + NGLs fractionated (mbpd) | |||||||||||||||
Marcellus Operations | 546 | 496 | 10 % | 533 | 478 | 12 % | |||||||||
Utica Operations | 34 | 30 | 13 % | 31 | 28 | 11 % | |||||||||
Southern Appalachian Operations | 10 | 12 | (17) % | 10 | 11 | (9) % | |||||||||
Bakken Operations | 20 | 21 | (5) % | 19 | 21 | (10) % | |||||||||
Rockies Operations | 3 | 3 | — % | 3 | 3 | — % | |||||||||
Total C2 + NGLs fractionated | 613 | 562 | 9 % | 596 | 541 | 10 % | |||||||||
(a) | Includes operating data for entities that have been consolidated into the MPLX financial statements as well as operating data for partnership-operated equity method investments. |
Reconciliation of Segment Adjusted EBITDA to Net Income (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
L&S segment adjusted EBITDA attributable to MPLX LP | $ | 1,091 | $ | 969 | $ | 3,139 | $ | 2,839 | |||
G&P segment adjusted EBITDA attributable to MPLX LP | 505 | 502 | 1,507 | 1,482 | |||||||
Adjusted EBITDA attributable to MPLX LP | 1,596 | 1,471 | 4,646 | 4,321 | |||||||
Depreciation and amortization | (301) | (302) | (907) | (925) | |||||||
Gain on sales-type leases | — | 509 | — | 509 | |||||||
Interest and other financial costs | (225) | (236) | (701) | (691) | |||||||
Income from equity method investments | 159 | 125 | 438 | 335 | |||||||
Distributions/adjustments related to equity method investments | (208) | (166) | (551) | (450) | |||||||
Adjusted EBITDA attributable to noncontrolling interests | 11 | 10 | 31 | 29 | |||||||
Garyville incident response costs | (63) | — | (63) | — | |||||||
Other(a) | (41) | 26 | (71) | 26 | |||||||
Net income | $ | 928 | $ | 1,437 | $ | 2,822 | $ | 3,154 | |||
(a) | Includes unrealized derivative gain/(loss), non-cash equity-based compensation, provision for income taxes, and other miscellaneous items. |
Reconciliation of Segment Adjusted EBITDA to Income from Operations (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
L&S | |||||||||||
L&S segment adjusted EBITDA | $ | 1,091 | $ | 969 | 3,139 | 2,839 | |||||
Depreciation and amortization | (130) | (128) | (399) | (387) | |||||||
Income from equity method investments | 95 | 72 | 248 | 183 | |||||||
Distributions/adjustments related to equity method investments | (113) | (75) | (278) | (212) | |||||||
Garyville incident response costs | (63) | — | (63) | — | |||||||
Other | (10) | (8) | (27) | (19) | |||||||
G&P | |||||||||||
G&P segment adjusted EBITDA | 505 | 502 | 1,507 | 1,482 | |||||||
Depreciation and amortization | (171) | (174) | (508) | (538) | |||||||
Income from equity method investments | 64 | 53 | 190 | 152 | |||||||
Distributions/adjustments related to equity method investments | (95) | (91) | (273) | (238) | |||||||
Gain on sales-type leases | — | 509 | — | 509 | |||||||
Adjusted EBITDA attributable to noncontrolling interests | 11 | 10 | 31 | 29 | |||||||
Other | (30) | 35 | (42) | 51 | |||||||
Income from operations | $ | 1,154 | $ | 1,674 | $ | 3,525 | $ | 3,851 | |||
Reconciliation of Adjusted EBITDA Attributable to MPLX LP and DCF Attributable to GP and LP Unitholders from Net Income (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Net income(a) | $ | 928 | $ | 1,437 | $ | 2,822 | $ | 3,154 | |||
Provision for income taxes | 1 | 1 | 2 | 6 | |||||||
Interest and other financial costs | 225 | 236 | 701 | 691 | |||||||
Income from operations | 1,154 | 1,674 | 3,525 | 3,851 | |||||||
Depreciation and amortization | 301 | 302 | 907 | 925 | |||||||
Income from equity method investments | (159) | (125) | (438) | (335) | |||||||
Distributions/adjustments related to equity method investments | 208 | 166 | 551 | 450 | |||||||
Gain on sales-type leases | — | (509) | — | (509) | |||||||
Garyville incident response costs | 63 | — | 63 | — | |||||||
Other | 40 | (27) | 69 | (32) | |||||||
Adjusted EBITDA | 1,607 | 1,481 | 4,677 | 4,350 | |||||||
Adjusted EBITDA attributable to noncontrolling interests | (11) | (10) | (31) | (29) | |||||||
Adjusted EBITDA attributable to MPLX LP | 1,596 | 1,471 | 4,646 | 4,321 | |||||||
Deferred revenue impacts | 25 | 39 | 65 | 87 | |||||||
Sales-type lease payments, net of income | 3 | 3 | 9 | 13 | |||||||
Net interest and other financial costs(b) | (212) | (216) | (650) | (635) | |||||||
Maintenance capital expenditures, net of reimbursements | (28) | (40) | (93) | (93) | |||||||
Equity method investment maintenance capital expenditures paid out | (4) | (4) | (11) | (10) | |||||||
Other | (7) | 11 | (10) | 28 | |||||||
DCF attributable to MPLX LP | 1,373 | 1,264 | 3,956 | 3,711 | |||||||
Preferred unit distributions(c) | (25) | (33) | (76) | (96) | |||||||
DCF attributable to GP and LP unitholders | $ | 1,348 | $ | 1,231 | $ | 3,880 | $ | 3,615 | |||
(a) | The three and nine months ended September 30, 2022, include a |
(b) | Excludes gain/loss on extinguishment of debt and amortization of deferred financing costs. |
(c) | Includes MPLX distributions declared on the Series A preferred units and Series B preferred 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). The Series B preferred units were redeemed effective February 15, 2023. Cash distributions declared/to be paid to holders of the Series A preferred units and Series B preferred units are not available to common unitholders. |
Reconciliation of Net Income to Last Twelve Month (LTM) adjusted EBITDA (unaudited) | Last Twelve Months | |||||||
September 30, | December 31, | |||||||
(In millions) | 2023 | 2022 | 2022 | |||||
LTM Net income | $ | 3,646 | $ | 3,992 | $ | 3,978 | ||
Provision for income taxes | 4 | 6 | 8 | |||||
Interest and other financial costs | 935 | 909 | 925 | |||||
LTM income from operations | 4,585 | 4,907 | 4,911 | |||||
Depreciation and amortization | 1,212 | 1,241 | 1,230 | |||||
Income from equity method investments | (579) | (428) | (476) | |||||
Distributions/adjustments related to equity method investments | 753 | 616 | 652 | |||||
Gain on sales-type leases | — | (509) | (509) | |||||
Garyville incident response costs | 63 | — | — | |||||
Other | 106 | (22) | 5 | |||||
LTM Adjusted EBITDA | 6,140 | 5,805 | 5,813 | |||||
Adjusted EBITDA attributable to noncontrolling interests | (40) | (39) | (38) | |||||
LTM Adjusted EBITDA attributable to MPLX LP | 6,100 | 5,766 | 5,775 | |||||
Consolidated total debt(a) | $ | 20,707 | $ | 20,108 | $ | 20,108 | ||
Consolidated total debt to LTM adjusted EBITDA | 3.4x | 3.5x | 3.5x | |||||
(a) | Consolidated total debt excludes unamortized debt issuance costs and unamortized discount/premium. Consolidated total debt includes long-term debt due within one year and outstanding borrowings under the loan agreement with MPC. |
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 September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Net cash provided by operating activities | $ | 1,244 | $ | 1,039 | $ | 3,908 | $ | 3,651 | |||
Changes in working capital items | 56 | 208 | (56) | 60 | |||||||
All other, net | (9) | (15) | (12) | (51) | |||||||
Loss on extinguishment of debt | — | 1 | 9 | 1 | |||||||
Net interest and other financial costs(a) | 212 | 216 | 650 | 635 | |||||||
Other adjustments related to equity method investments | 13 | 19 | 25 | 45 | |||||||
Garyville incident response costs | 63 | — | 63 | — | |||||||
Other | 28 | 13 | 90 | 9 | |||||||
Adjusted EBITDA | 1,607 | 1,481 | 4,677 | 4,350 | |||||||
Adjusted EBITDA attributable to noncontrolling interests | (11) | (10) | (31) | (29) | |||||||
Adjusted EBITDA attributable to MPLX LP | 1,596 | 1,471 | 4,646 | 4,321 | |||||||
Deferred revenue impacts | 25 | 39 | 65 | 87 | |||||||
Sales-type lease payments, net of income | 3 | 3 | 9 | 13 | |||||||
Net interest and other financial costs(a) | (212) | (216) | (650) | (635) | |||||||
Maintenance capital expenditures, net of reimbursements | (28) | (40) | (93) | (93) | |||||||
Equity method investment maintenance capital expenditures paid out | (4) | (4) | (11) | (10) | |||||||
Other | (7) | 11 | (10) | 28 | |||||||
DCF attributable to MPLX LP | 1,373 | 1,264 | 3,956 | 3,711 | |||||||
Preferred unit distributions(b) | (25) | (33) | (76) | (96) | |||||||
DCF attributable to GP and LP unitholders | $ | 1,348 | $ | 1,231 | $ | 3,880 | $ | 3,615 | |||
(a) | Excludes gain/loss on extinguishment of debt and amortization of deferred financing costs. |
(b) | Includes MPLX distributions declared on the Series A preferred units and Series B preferred 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). The Series B preferred units were redeemed effective February 15, 2023. Cash distributions declared/to be paid to holders of the Series A preferred units and Series B preferred units are not available to common unitholders. |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Net cash provided by operating activities(a) | $ | 1,244 | $ | 1,039 | $ | 3,908 | $ | 3,651 | |||
Adjustments to reconcile net cash provided by operating activities to adjusted free cash flow | |||||||||||
Net cash used in investing activities | (236) | (265) | (727) | (676) | |||||||
Contributions from MPC | 7 | 13 | 20 | 30 | |||||||
Distributions to noncontrolling interests | (11) | (10) | (30) | (29) | |||||||
Adjusted free cash flow | 1,004 | 777 | 3,171 | 2,976 | |||||||
Distributions paid to common and preferred unitholders | (799) | (755) | (2,419) | (2,248) | |||||||
Adjusted free cash flow after distributions | $ | 205 | $ | 22 | $ | 752 | $ | 728 | |||
(a) | The three months ended September 30, 2023, and September 30, 2022, include working capital builds of |
Capital Expenditures (unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |||||||
Capital Expenditures: | |||||||||||
Growth capital expenditures | $ | 189 | $ | 173 | $ | 555 | $ | 451 | |||
Growth capital reimbursements | (39) | (38) | (119) | (70) | |||||||
Investments in unconsolidated affiliates | 13 | 42 | 90 | 198 | |||||||
Return of capital | — | (11) | — | (11) | |||||||
Capitalized interest | (4) | (1) | (10) | (6) | |||||||
Total growth capital expenditures(a) | 159 | 165 | 516 | 562 | |||||||
Maintenance capital expenditures | 35 | 53 | 113 | 123 | |||||||
Maintenance capital reimbursements | (7) | (13) | (20) | (30) | |||||||
Capitalized interest | — | (1) | (1) | (1) | |||||||
Total maintenance capital expenditures | 28 | 39 | 92 | 92 | |||||||
Total growth and maintenance capital expenditures | 187 | 204 | 608 | 654 | |||||||
Investments in unconsolidated affiliates(b) | (13) | (42) | (90) | (198) | |||||||
Return of capital(b) | — | 11 | — | 11 | |||||||
Growth and maintenance capital reimbursements(c) | 46 | 51 | 139 | 100 | |||||||
Decrease/(increase) in capital accruals | 6 | 15 | (6) | (39) | |||||||
Capitalized interest | 4 | 2 | 11 | 7 | |||||||
Additions to property, plant and equipment(a) | $ | 230 | $ | 241 | $ | 662 | $ | 535 | |||
(a) | Total growth capital expenditures exclude |
(b) | Investments in unconsolidated affiliates and additions to property, plant and equipment, net are shown as separate lines within investing activities in the Consolidated Statements of Cash Flows. |
(c) | Growth capital reimbursements are included in changes in deferred revenue within operating activities in the Consolidated Statements of Cash Flows. Maintenance capital reimbursements are included in the Contributions from MPC line within financing activities in the Consolidated Statements of Cash Flows. |
View original content:https://www.prnewswire.com/news-releases/mplx-lp-reports-third-quarter-2023-financial-results-301972515.html
SOURCE MPLX LP
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